Trends - Vaughne Assurance Ltd.-Ltée

Home and auto insurance premiums in Atlantic Canada went through a significant increase over the last few years for many consumers, because of rising payouts by insurance companies to claimants. Here's an overview of what happened, why, what the insurance industry is doing to control costs, and what part you can play to help keep costs down in the future.

Factors that have affected claim payouts
What the insurance industry is doing to control costs
What you can do to help keep down premiums

Factors that have affected claim payouts and premiums?

- weather-related claims rose dramatically in the last few years, because of changing global climate changes. The 3 most expensive natural disasters in Canada's history - the massive ice storm of 1998 (over $1.4 billion in claims), the Saguenay flood and the Manitoba flood - all occurred in the last few years.
- the number of injury claims, cost of treatment, and court awards for pain and suffering have risen significantly over the past few years.
- investment of premiums by insurers has traditionally been used to help cover costs, but low interest rates and financial market downturns have reduced this source of revenue.

What the insurance industry is doing to help control costs

The insurance industry has undertaken several initiatives, including:
- taking aggressive steps to help reduce auto theft, including a theft deterrent standard with the Underwriters Laboratories of Canada (ULC)
- increasing the investigative resources that review suspicious claims, to help reduce insurance fraud.
- establishing the Institute for Catastrophic Loss Reduction to help Canadians withstand and recover from natural disasters.
- funding initiatives to promote road safety and reduce the frequency and severity of collisions.

What you can do to help keep down premiums

Talk to Vaughne Assurance about the following options:
- raising your deductible.
- dropping collision insurance on an older car.
- using package deals that offer savings by combining all your coverage (home, auto, etc.) with one insurance company.
- installing an approved theft deterrent system in your auto(s).
- choosing a car with a lower-cost insurance rating
- driver training or education programs that can result in insurance discounts
- installing a security and/or fire alarm/control system in your home
- write to your MLA

At Vaughne Assurance, we're committed to helping you get the best
combination of coverage and value to fit your individual requirements.