My Auto Insurace Premiums INCREASED by 30 percent

[rld]

I would, but it would be pointless, because it's essentially the same question I had, and I don't know the answer. If the vehicle's value is declining, then the replacement cost must also be declining, and the cost of repair would be constant or slightly depressed as good wrecker's yard parts become more available. So how can replacement cost be a greater portion of the premium as Monnex told jtk?

Here's the only scenario where I can imagine that wouldn't be true: That you did a deal where 'replacement' was actually a brand new version of the old beater that got totalled. But I can't see that as being reasonable deal for customer or company beyond maybe the first year or two.

Surely it would be obvious you'd do better to depreciate your own car and have that money in the bank instead of asking the insurance company to build that into the premiums and seeing it disappear if you drove safe. They'd have to bank more and more against that nasty possibility every year hoping you'd not notice and pay up until … Wait a minute!

Is that it?

I suspect JTK has not quoted the letter precisely.

Replacement costs arn't a stand alone premium category. Collision is.

While I don't know what model of vehicle is involved, but if a lot of them were in crashes for a the prior rating period, or their parts cost went up, or repair rates were renegotiated, the collision factor can go up.

But considering that collision does not make up a significant part of the premium dollar, a 30% increase is just about mathematically impossible based on collision alone.

you should also be aware that insurers will not authorize repair facilities to use "wrecking yard parts" to repair your car.

 

[fmahovalich]

While there are valid points above...there are two main reasons for the increase.

1) The economy/investments are not performing for the Ins. Companies.
2) Fraud.

Now, Kathleen and Andrea could have prevented these HUGE jumps, by capping increases, knowing the end goal was to reduce the rates.

But neither Kathleen or Andrea had that foresight ( their jobs in power were more important) So the proposed 'decrease' will in fact be increases.

Thank You.

 

[rld]

While there are valid points above...there are two main reasons for the increase.

1) The economy/investments are not performing for the Ins. Companies.
2) Fraud.

Now, Kathleen and Andrea could have prevented these HUGE jumps, by capping increases, knowing the end goal was to reduce the rates.

But neither Kathleen or Andrea had that foresight ( their jobs in power were more important) So the proposed 'decrease' will in fact be increases.

Thank You.

I would add two more:

1) bad government regulatory policy
2) misleading lobbying and book cooking by the insurers to influence both government and public opinion

 

[KBear]

I called my insurance company (TD Meloche Monnex) and they basically said "too bad, so sad".

I was thinking of switching to TD insurance, as I have heard they offer better rates if you are a graduate or member of some associations. Wondering if this is how they sucker you in, then jack they up the rates.

30% increase, wtf

 

[oldjones]

Thanks rld, I only mentioned 'wrecker's parts' because I was really at a loss to figure how replacement costs could go up at all. Given my small knowledge of cars and insurance I grasped at every straw I could imagine.

I suspect insurance companies are as eager to truthfully reveal the formulae and algorithms they use to compete in the market as Coke™ is to reveal their ingredients, beyond a brush-off factoid that they don't use real coke.

I can only offer my strategy, be your own insurer as much as you can, pay them only for the big risks you can't afford.

 

[oldjones]

Don't forget about all the fraud they claim is the reason for these hikes as well.

Yes there is fraud, but until you can prove it , bring the perps to justice and make them pay, don't raise people's rates randomly.

Insurance companies should spend the money on hiring professionals who can help in catching the fraudsters instead of making bad high risk investments.

Also thank Mc Stinky for proposing that they should have a guaranteed 13% profit every single year.

And that it should not work as it rightly should ie lower profits and even losses in some years and record profits in others.

People whose rates have dropped will always side with the Insurance companies until their's increase.

Ontario has the highest Insurance in Canada because of people's ability to pay.

Rates are much cheaper under the public Insurance schemes but the cover less.

Not sure we want the incompetent government options we have in Ontario administering a public Insurance though.

There is enough corruption and incompetence already.

Although McG didn't hand the insurance companies their guaranteed market for mandatory insurance he is the latest in the long line of Preems to suck up to the the Insurance companies after handing them the biggest cash-cow in Canada, without getting anything at all for us who pay, and even less for the folks injured or out of pocket that the insurance is actually for. We got nothing, the victims get less than before, and yet premiums are going up.

Government-run insurance may not be better but how could it be worse?

 

[james t kirk]

I suspect JTK has not quoted the letter precisely.

Replacement costs arn't a stand alone premium category. Collision is.

While I don't know what model of vehicle is involved, but if a lot of them were in crashes for a the prior rating period, or their parts cost went up, or repair rates were renegotiated, the collision factor can go up.

But considering that collision does not make up a significant part of the premium dollar, a 30% increase is just about mathematically impossible based on collision alone.

you should also be aware that insurers will not authorize repair facilities to use "wrecking yard parts" to repair your car.

I have the file at work, orelse I would post it (without my personal info).

There was 1 line item 23A (or something like that) which is under collision which says something to the effect of "depreciation value". Last year, it was $60.00, this year, $187. There were a few other lines that went up as well.

I should say this......

Mid 40's male, never made a claim (where I was at fault) and no claims at all in 10 years (last claim the other guy was at fault, I was rear ended)

No tickets in the last 3 years.

Live in the High Park Area of Toronto south of Bloor.

Car is a 20012 Premium Japanese

Going from memory, last year, the premium (including some loss of income riders if I am injured in an accident) was $1,060.00

This year, no changes to anything, the premium is $1,480.00



I called Monnex and buddy on the phone was the argumentative East Indian guy, the kind of guy who just yells louder and talks over you when he's trying to make a point. (sorry to stereotype.)

He told me that if I eliminated the Line 23A, it would mean that they could use parts from a wrecking yard to repair my car if I was in an accident, etc. I could eliminate the coverage for injury, etc. but what is the point?

The point is that nothing has changed in the last year, and yet my premium has increased by 30 % approximately ($320/$1060 = 30%)

My only option is to shop my entire insurance package around as Monnex has both my home, auto, and an umbrella policy (which is actually part of my home insurance.)

I'll try that next week.

 

[james t kirk]

There was some BS letter accompanying the renewal which tried to explain the increase. I was so mad, I couldn't concentrate on what the letter was saying.

 

[WinterHawk]

I was with Motors Insurance and they are leaving Canada, so my policy is up at the end of July. I was paying $156 a month and the best deal my broker could offer me was just over $200 a month for basically the same coverage with a new insurance company. Looking online from varorious websites all gave me coverage from as low as $1,650 to $5,800 for the year. I'm a 10 star driver, no tickets or at fault accidents in over 30 years of driving.

Going to check and see if I can bundle my coverage with my house. Or I'm going to the CAA.

 

[peeler_feeler]

...
My only option is to shop my entire insurance package around as Monnex has both my home, auto, and an umbrella policy (which is actually part of my home insurance.)

I'll try that next week.

I've had to do this for my parents recently after their insurance had increased dramatically over the previous year for their residential home, one rental property and two cars. It's such a pain in the ass to shop around for insurance, but it's worth the time to save some money.

 

[Serpent]

Try Cooperator's.

 

[curious newbee]

I have not changed ANYTHING. Nada, not moved, same car, don't drive my car for work purposes as I have a company vehicle for that.

Absolutely nothing has changed.

I'm not sure if you questioned the agent who answered or spoke to someone higher....and no, not their immediate supervisor/manager as they are just as useless. They will say things like different companies file rates differently and a lot of other excuses they have written down in a manual, so to speak.

You can get your rates lowered if you reach the right people and you can appeal it even after that if they don't lower it. Insurance companies don't like it when you go to the right people in the industry with a clearly stated case. I've done it in the past...and they backed down.

As for house insurance, you almost have to switch every couple of years. I remember when CAA ripped me off with some BS line. I shopped around, and voila, lower rate by almost 40% with more coverage from a reputable well known company too.

 

[saxon]

Heaven help you if you get seriously injured in a car accident. A friend of the family has had to resort to taking legal action as the insurance company has stopped paying him. Their doctor stated he is capable of returning to work so of course the insurance company will take the word of the dr. working at their clinic. This guys Dr. is a specialist and is telling the insurance company his patient is nowhere near ready to return to work. But the insurance company is siding with "their" Dr. who just got out of medical school.

 

[brocko]

To Curious, I am sure many of us would like to know in which department or agency "the right people"one would contact to essentially appeal their auto rating? Can you please elaborate. My understanding is that it is nearly impossible to speak with anyone inside the company as they seem to rely on the broker to handle PR. One thing I do know is that in all types of insurance the insurer expects and even encourages cancellations in order to release reserves that go directly to profit.

 

[GPIDEAL]

Insurance companies are a powerful group that has lobbied governments for regulations that give them monopoly (or oligopolistic powers).

Governments won't allow more competition because they feel that claims might not be paid by 'rinky-dink' insurance companies that operate in a less-restrictive marketplace.

 

[james t kirk]

Called "the Personal" today.

Their quote for an Auto Policy for me was actually $400.00 a year more than I'm paying now (with a 30% increase) with TD Meloche Monnex.

BUT, just out of curiousity, I had them quote my Home Insurance and the Personal is about $550 LESS than Meloche Monnex.

So I'm looking at getting more quotes for Auto and quite possibly going with two insurers rather than just 1.

 

[WinterHawk]

I was with Motors Insurance and they are leaving Canada, so my policy is up at the end of July. I was paying $156 a month and the best deal my broker could offer me was just over $200 a month for basically the same coverage with a new insurance company. Looking online from varorious websites all gave me coverage from as low as $1,650 to $5,800 for the year. I'm a 10 star driver, no tickets or at fault accidents in over 30 years of driving.

Going to check and see if I can bundle my coverage with my house. Or I'm going to the CAA.

Going with Desjardins and their lowest price was $109 a month, popular choice was $142 and the delux at $180 had $2m, no deductible, accident forgiveness, replacement, etc.

I'm guessing that no brokerage saves you money.

 

[richaceg]

Always take 2 steps ahead of your insurance policies. 2 months before my insurance expired i asked my insurance company if they can provide me a better rate than my current since I have been clean for 3 years. The answer I got was they can't until maybe 2 weeks prior to expiry. I told them I already got a quote from a different insurer and I like what I see (a much lesser rate than my current). It was matched by weekend.

 

[blackrock13]

Always take 2 steps ahead of your insurance policies. 2 months before my insurance expired i asked my insurance company if they can provide me a better rate than my current since I have been clean for 3 years. The answer I got was they can't until maybe 2 weeks prior to expiry. I told them I already got a quote from a different insurer and I like what I see (a much lesser rate than my current). It was matched by weekend.

I was always under the impression that you are supposed to get your new rate notice 30 days before the end date. I called my last company on this a few times and was given an array of classic answers why they couldn't that year. When I shopped around and got my present coverage, I called them to terminate and got an immediate, yabbut yabbut whaddabpout.

I had a few rounds with Monnex years ago and told them to stuff it.

 

[james t kirk]

I have now walked away 100% from TD Meloche Monnex. No auto, no home. Nadda with them any more.

When I switched my home insurance from TDMM, they called me up and asked me why (after 15 years with them or so) and so I told them point blank - their prices were far too expensive. My home insurance had always been around 600 a year

2009 = 600
2010 = 800
2011 = 1,000
2012 = 1,200
2013 = 1,800 (that's when I drew the line.)

No claims ever.

Not only had the premiums gone stupid, they cut the sewer back up from 50k to 15k (as a result of the summer storm in Toronto, which didn't affect me, or at least cause me to file a claim.)

Ever since TD took them over, Monnex became all about how much they could get away with charging.

TD killed Monnex.

Anyway, The Personal offered me home insurance for $1,000 a year, so I switched.

Then TDMM jacked my auto premium again because I was supposedly getting some discount for having my home insurance with the. (I had warned them when I cancelled my home insurance that if they jacked my auto (like they told me they were going to do) I would switch my auto provider.

Sure enough, TDMM jacked my auto rate (Again), so I dropped them for my auto coverage as well.

So in the space of a couple of months, TDMM went from having all of my insurance business (as they had had for 20 years) to having nothing.

Amazing arrogance on their part.