Car and Home Insurance Premiums Are Rising Again in Quebec
Every year, the vast majority of Canadians have to go through the process of renewing their car and home insurance. Unsurprisingly, when you receive your renewal, the price has usually gone up and is higher than the previous year, which can be frustrating, especially if the premium increase is substantial.
According to the new annual study on rising property and casualty insurance costs in Canada, presented by Applied Systems, the average cost of car insurance in Canada rose by 11.3% in the last quarter of 2024 compared with the same quarter of 2023. For home insurance, the increase is slightly lower but still fairly significant, at 7.3%.
In Quebec specifically, the average cost of a car insurance premium rose by 9.3%, and home insurance premiums rose by 8.6%.
Car insurance
* Source: Applied Rating Index - Q4 2024
*Chart: Average change in the cost of insurance premiums compared with the same quarter of the previous year. (For car insurance)
Home insurance
* Source: Applied Rating Index - Q4 2024
*Chart: Average change in the cost of insurance premiums compared with the same quarter of the previous year. (For home insurance)
What is behind this increase in car and home insurance premiums?
For more information on this topic, see our article Get ready for an increase in your home and car insurance premiums
First, claim costs are rising because of higher prices for construction materials and labour. Although the cost of lumber has been relatively stable since 2019, materials such as insulation, drywall, asphalt shingles, concrete and paint have gone up by about 20%.
Next, for several years now we have seen a sharp increase in the frequency and severity of extreme weather events. Just think of the forest fires and floods that have hit Quebec in recent years, not to mention increasingly violent thunderstorms, often accompanied by tornadoes.
As for vehicles, the increase is largely explained by the rise in the number of vehicle thefts in Canada. Despite the new resources the government has put in place to combat these crimes, the pressure on insurers and on the profitability of car insurance is pushing them to raise premiums to offset their losses. In addition, the 69% increase in the average price of new vehicles in Canada since 2019 affects replacement and repair costs, which in turn is reflected in car insurance premiums.
All these factors also affect the reinsurance market for insurance companies. The tightening of the reinsurance market is a phenomenon in which insurers have to pay more to be covered themselves, so that they do not have to bear significant losses alone when major disasters strike.
How can you save on car and home insurance in 2025?
Although the upward trend seems likely to continue over the next few years, you can take steps to see things more clearly and get insurance that meets your needs while remaining affordable. This is where ClicAssure comes in, to help you get cheaper insurance.
ClicAssure is not an insurer, but rather an insurance comparison site. ClicAssure’s mission is to help Quebecers get the best possible price for their car and home insurance.
When you receive your insurance renewal in 2025, you will most likely notice a considerable increase in the cost of your insurance premiums. Your first reflex should be to visit ClicAssure.com and complete a quote request to compare prices. ClicAssure will then show you several prices from direct insurers, insurance brokers and insurance agents. You can then choose the offer that suits you and save considerably on your car insurance.
ClicAssure customers saved an average of 32%* on their car insurance renewal and 32%* on their home insurance renewal.
* Based on people who completed a car or home insurance quote request through ClicAssure.com and took out an insurance policy with a partner
