Industry News
Why Canadian Insurance Premiums Keep Rising
If your home or auto premium has gone up at renewal, you are not alone. According to Statistics Canada, Canadian households have seen insurance costs rise sharply over the past six years, well above the pace of general inflation. The reasons are well documented and they point to pressures that are not going away soon. Here is a plain language look at the numbers, what is driving them, and what Canadian households can do at their next renewal.
Premiums are rising faster than the cost of living
Between December 2019 and December 2025, the all items Consumer Price Index rose by 21.0 percent. Over the same period, Statistics Canada reports that homeowners home and mortgage insurance premiums rose by 45.0 percent, and passenger vehicle insurance premiums rose by 23.9 percent.
In other words, insurance is one of the household costs that has outpaced general inflation, and home insurance has roughly doubled the rate of overall price growth.
Extreme weather is the single biggest driver
Statistics Canada notes that 2024 was the costliest year on record for extreme weather claims in Canada, and that each year from 2020 to 2025 ranked among the ten costliest on record. Catastrophic event claims, defined as events that exceed 30 million dollars, reached 8.6 billion dollars in 2024 alone, compared to 2.5 billion in 2020.
Most of these claims fall on the home insurance side. That pressure has pushed insurer expenses for homeowners insurance to an all time high of 13.2 billion dollars in 2024.
Rebuilding and repairs cost more than they used to
Even outside of catastrophic events, the cost to repair a home or a vehicle has climbed quickly. Statistics Canada reports that the Residential Building Construction Price Index rose 69.4 percent between the fourth quarter of 2019 and the fourth quarter of 2025. Homeowners maintenance and repair costs rose 19.1 percent over the same period.
On the auto side, parts, maintenance, and repair costs rose 22.6 percent from December 2019 to December 2025. Higher vehicle prices and a rise in auto theft have added further pressure on auto premiums.
Insurers are feeling the strain too
Statistics Canada describes the third quarter of 2024 as the worst on record for many property and casualty insurers, with total expenses rising 3.8 billion dollars from a year earlier, largely due to extreme weather. When insurer claims and expenses rise this sharply, those costs eventually flow into the premiums Canadians pay at renewal.
What Canadian households can do at renewal
- Review your home replacement cost with your broker, since construction costs have moved significantly
- Ask about water, sewer backup, and overland flood endorsements before storm season
- Confirm your auto policy reflects how you actually use the vehicle today
- Ask which anti theft devices or trackers your insurer recognizes for a credit
- Bundle home and auto with the same carrier where it makes sense
- Compare quotes through an independent brokerage so you see more than one carrier at a time
Wondering why your renewal jumped
A licensed RIBO broker can review your home and auto policies line by line, explain what is driving the change, and shop your coverage across multiple Canadian carriers.
Frequently asked questions
Are insurance premiums going to keep rising in Canada
No one can guarantee future pricing, but the cost pressures Statistics Canada has documented, including extreme weather, higher rebuild costs, and auto theft, are expected to continue influencing premiums in the near term.
Why has my home insurance gone up more than my auto
Home insurance has been hit hardest by extreme weather claims and by a sharp rise in construction costs. Statistics Canada reports homeowners home and mortgage insurance premiums rose 45.0 percent from December 2019 to December 2025, compared to 23.9 percent for passenger vehicle insurance.
Can switching brokers actually lower my premium
A broker cannot change the underlying cost pressures, but an independent brokerage can shop your risk across multiple carriers, review your coverage limits, and confirm you are receiving every discount you qualify for.
References and official guidance
- Statistics Canada, Insurance in Canada: What is driving premiums higher (infographic, Catalogue no. 11-627-M, 2026)
- Statistics Canada, Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025 (Analysis in Brief, Catalogue no. 11-621-M)
- Statistics Canada, Consumer Price Index portal
This article is for educational purposes only and is not a substitute for personal advice from a licensed insurance professional. Coverage, eligibility, and pricing vary by carrier and policy. Always refer to your policy wording for exact terms.