Insurance coverage premiums are hovering and each driver is paying extra
Article content material
Article content material
Auto theft has grow to be such an issue in Canada that Ottawa has referred to as a nationwide summit to search out options.
In keeping with the Insurance coverage Bureau of Canada, greater than 80,000 autos have been stolen on this nation over the previous 12 months. In Ontario, one of many nation’s hotspots for the crime, auto theft claims have been up 329 per cent within the first half of 2023, including as much as greater than $700 million in losses.
Commercial 2
Article content material
In the meantime, the price of insurance coverage simply retains going up.
Auto insurance coverage premiums rose almost 6 per cent in 2023 and are set to rise once more in 2024, says a report by on-line comparability website Ratesdotca. The Monetary Companies Authority of Ontario just lately posted authorized price will increase for insurers ranging as much as 25 per cent to take impact within the first quarter of this 12 months.
The federal authorities believes transnational organized crime is concerned within the export of stolen autos from Canada, most of that are destined for Africa and the Center East. Road gangs usually perform the thefts, and police within the Better Toronto Space have seen a large surge in carjackings.
The crime wave has pushed up complete insurance coverage premiums for generally stolen autos between 25 per cent and 50 per cent over the previous two years, stated Ratesdotca, which calls auto theft a “nationwide disaster.”
Moreover, Ontarians are paying greater than $1.9 billion to cowl the prices of those thefts, in accordance with the insurance coverage bureau. It estimates auto theft prices each driver in Ontario a median of $130 a 12 months.
Midday Information Roundup
Article content material
Commercial 3
Article content material
Insurance coverage corporations have additionally put a $500 surcharge on high-risk autos which embrace Honda CR-V, Ford F-Collection, and Dodge Ram 1500 Collection, however prospects can keep away from this by putting in an anti-theft system, comparable to a Tag anti-theft system or wheel lock, stated the report.
Équité Affiliation, a non-profit group, publishes an inventory of the highest 10 most stolen autos in Canada, for those who care to test it out before you purchase. If you’re searching for a automobile that hardly anybody steals attempt the Chevrolet Volt or Kia Niro.
Auto theft, nevertheless, isn’t the one factor driving up insurance coverage prices. Inflation and persevering with components shortages have additionally contributed, says Ratesdotca.
World provide chains have improved for the reason that pandemic, however two years later disruptions are nonetheless delaying shipments of auto components. Assaults on freight ships within the Pink Sea just lately halted manufacturing at Volvo Group and Tesla Inc factories in Europe.
Inflation has additionally performed its half, pushing up the prices of components, upkeep and repairs by virtually 6 per cent over the previous 12 months, stated Ratesdotca. Technological advances comparable to rearview cameras and sensors are additionally making repairs dearer.
Commercial 4
Article content material
_____________________________________________________________________
Was this article forwarded to you? Enroll right here to get it delivered to your inbox.
_____________________________________________________________________
For an concept of the diverging fortunes of Canadians and our neighbours to the south look no additional than this chart, from BMO senior economist Priscilla Thiagamoorthy.
Final week we discovered that the American economic system expanded by 3.3 per cent annualized within the fourth quarter, making six quarters in a row when progress was 2 per cent or higher.
Usually, when America is doing effectively, Canada follows swimsuit. But because the chart reveals client spending in america rose 2.8 per cent within the final quarter, whereas Canadians “stay underneath extreme stress.”
One key purpose for that is 30-year fixed-rate mortgages within the U.S. Locked into low charges, many owners usually are not dealing with the daunting mortgage renewal cliff Canadians are.
With extra mortgage renewals to come back and record-high family debt, client spending in Canada will proceed to sink this 12 months and weigh on progress, stated Thiagamoorthy.
Commercial 5
Article content material
- Federal Reserve begins its assembly on rates of interest as we speak. The Fed has stored its goal price between 5.25 and 5.5 per cent since July and economists anticipate it is going to proceed to carry the speed when its determination is introduced Wednesday.
- At this time’s Knowledge: S&P/Case-Shiller Dwelling Worth Index for November, United States Convention Board client confidence Index and U.S. job openings and labour turnover examine
- Earnings: Algoma Metal Group Inc, CAE Inc, Metro Inc, Canadian Pacific Kansas Metropolis Ltd., Digital Arts Inc, Microsoft Corp, Alphabet Inc, Starbucks Corp, Pfizer Inc.
- Get all of as we speak’s high breaking tales as they occur with the Monetary Put up’s dwell information weblog, highlighting the enterprise headlines you’ll want to know at a look.
It’s nice while you decide a small-cap firm that no person has ever heard of after which it turns into the subsequent best factor. Veteran investor Peter Hodson provides us some the reason why such shares are ones to analyze.
Commercial 6
Article content material
* * *
Are you anxious about having sufficient for retirement? Do you’ll want to alter your portfolio? Are you questioning methods to make ends meet? Drop us a line at aholloway@postmedia.com together with your contact data and the overall gist of your downside and we’ll attempt to discover some specialists that will help you out whereas writing a Household Finance story about it (we’ll hold your title out of it, after all). When you have an easier query, the crack staff at FP Solutions led by Julie Cazzin or certainly one of our columnists can provide it a shot.
Really useful from Editorial
-
The housing market rally won’t be all that it appears
-
Coming recession will probably be a story of housing versus commodities
At this time’s Posthaste was written by Pamela Heaven, @pamheaven, with extra reporting from The Canadian Press, Thomson Reuters and Bloomberg.
Have a narrative concept, pitch, embargoed report, or a suggestion for this article? E mail us at posthaste@postmedia.com, or hit reply to ship us a notice.
Bookmark our web site and assist our journalism: Don’t miss the enterprise information you’ll want to know — add financialpost.com to your bookmarks and join our newsletters right here.
Article content material
