There have been a number of warnings from media and the insurance industry about Alberta rate increases over the past while. Weather and flood damage has take it's toll on insurance company coffers over the past couple of years and it's true that they are making adjustments to help sustain insurance products that work for all Canadians.
So will there be a blanket 30% increase in insurance rates acros Alberta? The answer is no, but things may still change on your policy.
What Kind of Changes Can You Expect
To alot of people when they hear that there will be some changes on their insurance policy, they immediately think price increase. The rates and prices on some accounts will definitely be adjusted, if they haven't already, but this is just one area that can be manipulated.
Deductible
The deductable is the amount of money you have to pay out of pocket before your insurance will begin covering expenses on a claim. One strategy insurance companies use to reduce expenses is to increase the deductable on certain policies to reduce the amount of lower value claims.
Coverages
Some coverages such as sewer backup and wind/hail damage may have been added as separate items on your policy. This allows different deductables and limits to be added to these specific coverages as well as the opportunity for customers to opt out of these to lower their expense.
Limits
Each coverage on your policy has a limit associated with it. These limits can usually be increased by purchasing extra insurance such as "Umbrella" coverage. One strategy insurers are using is to reduce limits on some coverages to help protect the bottom line. In a case where your limit has been decreased it is often wise to look at purchasing additional coverage if its available.
Premium
Your insurance premium is the full amount of money your pay yearly to maintain the policy. Some may be on monthly payment plans, or make payments at other intervals, but your payments are derived from your total premium. This are may increase AND it may be affected by new coverages and changed deductibles. Your premium is based on may factors including where you live. If you do live in a flood zone you're likely to see an increase, depending on what insurance company you're with. Others however, may see minimal to no change.
What Can I do If I Do See a Large Increase
If you do get a renewal letter in the mail with a substantial increase on it, don't panic. There are measures you can take that may reduce this increase. The first thing to do is to call your Insurance broker. Explain the situation and ask what can be done. Your broker has many options that can help get your premium in order with your budget.
If you're not sure who your broker is or you're not with a broker give Armour Insurance a call Alberta wide at 1-855-475-0959. We can help protect your investment and your pocket book.
