Dents and broken glass are just some of the damages left behind by Southern Alberta hail storms last summer.
At CSL Ford in Cardston, the average insurance claim per vehicle ranged around 10 to 12 thousand dollars. When owner Dave Nay received his renewal for this year he noticed a significant spike in premiums.
“Got my renewal for used vehicles and the building and it went up, I would say probably 35 percent. That was a very large increase,” said Nay.
According to the Insurance Bureau of Canada, Alberta accounted for 62 percent of all catastrophic insured-losses that occurred in Canada last year. They also said there’s no definite amount for how much rates will change.
“Insurers will set their premiums based on their claims cost and if they’re seeing claims increasing then they may move their premiums higher,” said Steve Kee from the Insurance Bureau of Canada.
After Nay saw an increase in price for his insurance this year, he’s skeptical about seeing a reduction.
“Like any company I expect it’s going to be very difficult once they raise their rates, no one likes to lower them. I think we’re stuck with that even if we don’t experience the losses we have in the last couple years.”
The IBC recommends that any damage should be documented to show insurance companies exactly what happened, this can help with the adjustment and settlement of claims and help them move more quickly and efficiently.
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