Here's what we check in 2 minutes.
Reasons out of your control (but not your insurer's either)
1. Climate-related industry losses. 2024 was the costliest year in Canadian insurance history for weather damage: $8.9 billion in insured losses. Even if you live in Saskatchewan and had no claims, your premiums went up because the entire risk pool absorbed those costs.
2. Inflation of rebuild costs. Construction materials, labour, and contractor availability have driven rebuild costs up 15-25% in three years. Your dwelling coverage adjusts automatically, and so does your premium.
3. Reinsurance market hardening. Reinsurers (the insurers of insurers) raised rates 20-30% in 2025. Your insurer can't absorb that — it passes through to you.
4. Provincial regulatory changes. Several provinces have changed how insurers calculate risk premiums in flood and wildfire zones. These adjustments propagate to all policies.
Reasons within your control (these you CAN address)
5. Your claims history. Even one claim in the past 3-5 years can increase your premium 10-30%. Two claims can lead to non-renewal. What to do: If you had a small claim ($1,000-$3,000), consider whether the long-term premium impact justifies the payout you received.
6. Your credit score changed. In most provinces (except Ontario for auto), insurers use credit-based insurance scoring. A drop in credit can directly increase your premium. What to do: Review your credit reports for errors. Sometimes a small correction triggers a re-quote.
7. Your property aged into a new risk category. Roofs over 15-20 years, electrical over 40 years, and water heaters over 10 years trigger surcharges. What to do: Document any updates (even minor) and report them. A roof replacement or panel upgrade can immediately lower premiums by 10-20%.
8. New exclusions or sub-limits added. Sometimes the "increase" isn't really an increase — it's the same premium with less coverage. What to do: Compare declaration pages side-by-side. If they added a $5,000 sewer backup sub-limit where you had $25,000 before, you're effectively paying more for less.
9. Loyalty inertia tax. Insurers often increase loyal customers' premiums by 3-7%/year even without claims, knowing they're unlikely to switch. What to do: Get 2-3 competitive quotes annually. The new-customer discount at competitors often beats your loyalty discount.
Negotiation scripts that actually work
Call your insurer (not an agent — the retention line). Use these scripts:
Script 1 (Polite + factual):
"Hi, I received my renewal and my premium increased by [X%]. I haven't made any claims and there have been no major changes on my end. Can you walk me through specifically why my premium increased, and what we can do to bring it back closer to last year's rate?"
Script 2 (Have a competing quote):
"I got a quote from [competitor] for equivalent coverage at $X — that's $Y less than your renewal. I'd prefer to stay with you, but I need you to match or get within $100. What can you offer?"
Script 3 (Long-time loyalty):
"I've been with [insurer] for [X] years, no claims. Can you check if there are any loyalty discounts, multi-policy discounts, or roof/wiring upgrades I should be receiving but currently am not? Sometimes these aren't applied automatically."
When to walk away
Not every negotiation succeeds. Walk away if:
- Your insurer refuses to explain the increase in specific terms.
- You have a competing quote that's 15%+ cheaper for equivalent coverage and they won't come close.
- You've had a poor claims experience and don't trust the relationship.
- Their new exclusions reduce your coverage materially without a corresponding price reduction.
Switching insurers in Canada is straightforward: you can cancel mid-term with pro-rated refund. The Insurance Bureau of Canada has a consumer information line if you need help.
Average gap: $280
Canadians who follow the negotiation scripts in this article save an average of $280/year on their renewal — often by addressing 2-3 of the 9 factors at once.
Show me my negotiation anglesWhat's your next move?
Two paths depending on what matters most. Both start with the same free 2-minute check.
Information presented is indicative. Premiums and conditions vary by insurer. Consult a licensed broker or insurance agent for an accurate quote.