Auto insurance premiums increased in 2021

Auto insurance premiums increased in 2021


Quebecers have, on average, spent $43 more on their car insurance premium in 2021, compared to 2020, according to a report from the Groupement des Assureurs Automobiles du Québec (GAA) released on Wednesday.  

The 2021 Automobile Insurance Statistical Report says this is a 5.87% year-over-year increase. The amount has indeed increased from $732 in 2020 to $775 in 2021.

This increase is mainly due to an increase in the number and average cost of automobile claims. Among the regions where the premium increased the most, we find Montreal West (+ 6.85%), Gaspésie (+ 6.83%) and Estrie (+ 6.67%).

The average cost of a motor claim increased by 7.52% in one year, while the number of claims in 2021 increased by 3.4%. The cost of a claim includes the cost of replacement parts, labor and overall vehicle price increases. Nord-du-Québec is the region with the highest average cost of a claim ($5,751), unlike Bas-Saint-Laurent ($3,195).

These are in urban areas with the most claims: central and eastern Montreal (11.9%), the Laval region (9.76%), western Montreal (9.71% ) and the Urban Community of Quebec (9.6%). Conversely, Nord-du-Québec (6.9%), Abitibi-Témiscamingue (7.5%) and Centre-du-Québec (7.7%) are the areas least affected by motor claims, since these are the least densely populated regions.

The year 2020 had already seen a significant decrease in claims compared to 2019, linked in particular to measures to combat COVID-19. Quebec then posted a 30.1% drop in the number of accidents on the roads, while the overall loss ratio fell by 33.6%. This decrease is explained by the significant reduction in traffic on the roads.