Why Your Insurance Premiums Are Rising – And What You Can Do About It |

Last year, I took the time to look for a better and more affordable home and auto insurance, even though the cost of my existing insurance was average and not too expensive. With a home and more than one car to insure, I set out to shop around and try to get something at least 10% cheaper, taking advantage of multi-product insurance discounts.

Within a few days, I was able to secure a new insurance premium that was close to 20% cheaper. Not only that, but it was with a more reputable company, offering me more options, greater convenience, and better coverage overall. Over the course of one year, I saved just under $1,000!

Unfortunately, that didn’t last. I just received my annual renewal letter, and combined, my home and auto insurance are going up by 8%. While that is still cheaper than what I was paying a year ago before the switch, I wasn’t prepared to shell out an extra $25 a month for an insurance increase.

So the question for me is: with a few weeks to go before my new premiums kick in, do I look for another insurance provider, or do I just absorb the increase since it’s still cheaper than my previous company? The first thing I did was research whether this was a general industry-wide increase or if it was specific to individuals or regions. I also noticed that my employer’s group insurance benefits went up by over 8% as well.

It turns out there is indeed an industry-wide increase in insurance premiums across Ontario and Canada, due to a combination of environmental, economic, and industry-specific factors. In general, insurance premiums in Canada have been rising across multiple sectors. Home insurance rates have increased by about 5.28% in 2025, driven by extreme weather events, with Alberta seeing a sharper 9.07% rise due to significant weather-related damages. Life insurance costs are also climbing due to factors like longer life expectancies, higher interest rates, and growing demand for comprehensive coverage. Meanwhile, commercial auto insurance is said to be stabilizing, with rate hikes slowing, though most will still see an increase this year, just like I did.

Related: Why Insurance Rates Are Rising

With the knowledge that insurance premiums are rising across the board, is it still worth shopping around? Absolutely. While costs have gone up industry-wide, some firms still offer lower-cost insurance than others. Even if a company provides a superior product and service, a competitor may offer similar coverage at a lower price. You might consider switching for a year or so until things stabilize, then look for a better long-term provider. A good benchmark for switching would be a savings of at least 10%.

To manage these rising costs, reviewing your existing coverage can be a smart cost-cutting measure. Consider eliminating or reducing unnecessary add-ons, such as rental car coverage, which may not be essential—especially if you already have a second family car. Regularly reassessing your policies and shopping around for better rates can also help you save money while maintaining essential protection.

Home, life, and auto insurance can be a significant budgetary item for most households, consuming hundreds of dollars each month. As premiums rise industry-wide, it may be worth spending some time shopping for a cheaper option while also reviewing your existing coverage to see if any add-ons can be modified or eliminated altogether for better savings.