Canadian drivers are facing another reminder that the cost of keeping a vehicle insured can rise much faster than the number of vehicles on the road. Intact Financial Corporation’s latest quarterly results show that operating direct premiums written in its Canadian personal auto business increased 10%, while its insured vehicle count grew just 2%.
The figures, released November 3, 2026, highlight the widening gap between premium growth and customer growth in Canada’s auto insurance market. Rising repair expenses, vehicle theft and changing insurance risks continue to influence pricing, even as Intact reports stronger profitability in its automotive underwriting business. For households already managing expensive vehicle payments, maintenance and everyday living costs, the results raise important questions about how insurance premiums are changing and whether relief could be coming.
Premium Growth Is Far Outpacing the Number of Vehicles Insured
Intact Financial Corporation reported that operating direct premiums written in its Canadian personal automobile insurance business increased 10% during the third quarter of 2026 compared with the same period a year earlier. However, the company reported insured unit growth of just 2%, indicating that its premium volume expanded considerably faster than the number of vehicles covered. Intact described the operating environment as a hard insurance market, a term associated with tighter underwriting conditions and upward pressure on pricing. The numbers suggest that increases in premium amounts, changes in coverage or shifts in the mix of insured vehicles played a substantial role in the company’s growth, rather than an influx of new customers alone.
That distinction matters because premium growth is not necessarily equivalent to the average price increase experienced by an individual driver. Direct premiums written measure the value of insurance coverage written during a reporting period, rather than the amount each customer pays at renewal. Changes in vehicle types, policy limits, deductibles and customer characteristics can influence the total. Nevertheless, the eight-percentage-point difference between premium growth and unit growth is significant. It shows why insurers can generate considerably more business without dramatically expanding their customer base. For Canadian households, the concern is that insurance costs can continue rising even when the number of insured vehicles changes relatively little.
Higher Repair Costs Are Making Insurance Claims More Expensive
One of the biggest pressures facing Canada’s automobile insurance industry is the rising expense of repairing damaged vehicles. Statistics Canada reported that the consumer price index for passenger vehicle parts, maintenance and repairs increased 22.3% between December 2019 and December 2024. Vehicle prices also climbed considerably during that period, increasing the potential cost of replacing a car after a serious collision or theft. Modern vehicles frequently contain cameras, radar sensors, advanced lighting systems and other electronic components that can make seemingly straightforward repairs more complicated. A damaged bumper, for example, may require more than replacement parts and paint if driver-assistance equipment also needs inspection or recalibration.
These expenses matter because insurers must collect enough premium revenue to cover the claims they expect to pay, along with operating costs and an allowance for profitability. Statistics Canada’s research found that the increasing cost of individual claims has been a particularly important contributor to insurance cost pressures. Even when collision frequency remains relatively stable, higher repair bills can push total claims expenses upward. For vehicle owners, that creates an uncomfortable situation: purchasing a safer, technologically advanced vehicle does not necessarily guarantee cheaper insurance. Features designed to prevent or reduce crashes can also be costly to repair after damage occurs. Although Intact did not attribute its entire 10% premium growth to repairs, the broader industry evidence helps explain why insurers continue pursuing higher premium revenue.
Auto Theft Losses Have Declined but Remain Historically Expensive
Vehicle theft has been another major source of pressure on Canada’s insurance industry, although recent figures show that efforts to reduce the problem are producing results. According to the Insurance Bureau of Canada, the number of auto theft insurance claims declined 24% between 2024 and 2025, while the total value of those claims fell 30%. Nevertheless, theft-related insurance losses still reached approximately $724 million in 2025. That figure was substantially higher than the $269 million recorded a decade earlier. Over those ten years, the value of theft claims increased 169%, demonstrating how significantly the financial consequences of vehicle theft have changed despite the more recent improvement.
For insurers, theft risk remains an important consideration when calculating premiums for particular vehicles and locations. A vehicle that is frequently targeted by organized theft groups may present a different insurance risk from a similarly priced model with a stronger theft record. Comprehensive coverage can protect against theft and certain other non-collision losses, making those risks particularly relevant to that portion of a policy. However, declining theft claims should not be mistaken for evidence that insurance prices will automatically fall. Insurers also consider collision costs, injury claims, repair inflation and their overall experience with insured customers. The recent improvement in theft statistics is encouraging for Canadian drivers, but it represents only one component of a much larger insurance pricing equation.
Intact’s Canadian Auto Insurance Business Remains Profitable
Despite the pressures facing drivers, Intact’s Canadian personal auto insurance operations delivered strong underwriting performance during the third quarter. The company reported a combined ratio of 91.2% for the business, an improvement from the previous year. A combined ratio measures claims and related insurance expenses against earned premiums, providing an important indication of underwriting profitability. A result below 100% generally means an insurer is earning more from premiums than it is spending on claims and underwriting expenses. Intact’s figure therefore indicates that its Canadian automobile insurance business remained profitable on an underwriting basis, even as the company continued operating in what it characterized as difficult market conditions.
The result also places the company’s premium growth in a different light. Higher insurance costs are frequently explained by the need to address expensive claims, but the latest figures show that Intact’s automotive underwriting operations are producing positive results. That does not mean every premium increase represents additional profit, because insurance pricing must account for future claims and risks that may not yet have materialized. It also does not mean the company’s overall financial performance improved. Across its global operations, Intact reported a combined ratio of 94.0%, compared with 89.8% a year earlier, reflecting weaker overall underwriting performance. The contrast illustrates why individual business lines must be examined separately when assessing an insurer’s financial position and the reasons behind changing premiums.
Other Canadian Insurance Businesses Show a Different Financial Picture
Intact’s Canadian operations extend well beyond automobile insurance, and its latest financial results reveal considerable differences between business lines. Across its Canadian insurance operations, operating direct premiums written reached approximately $4.94 billion during the third quarter, up from $4.62 billion a year earlier. That represented growth of 7%, compared with the 10% increase reported for personal automobile insurance. Personal property insurance premiums also grew 7%, supported by insured unit growth of just 1%. Commercial insurance premiums increased 2%, reflecting a more moderate pace of expansion. These figures demonstrate that premium increases are occurring across several categories, although the magnitude varies depending on the type of coverage and underlying insurance risks.
The differences become even more noticeable when examining underwriting profitability. Intact’s Canadian personal property business reported a combined ratio of 105.0%, meaning its insurance-related costs exceeded earned premiums during the quarter. The company attributed 33 percentage points of that result to catastrophe losses. By comparison, its personal auto business recorded a considerably stronger combined ratio of 91.2%. Statistics Canada has also found that extreme weather generally affects homeowners’ insurance more heavily than automobile insurance. Taken together, the figures show that different types of insurance can experience sharply different financial conditions within the same company. Intact’s overall Canadian combined ratio deteriorated to 95.1%, compared with 89.1% a year earlier, even while automobile underwriting improved. That distinction is important when evaluating claims about industry-wide insurance costs.
Provincial Insurance Rules Create Very Different Experiences for Drivers
Canada’s automobile insurance market is not governed by one national pricing system, meaning drivers can experience different outcomes depending on where their vehicles are registered. Ontario and Alberta rely primarily on private insurers for mandatory automobile coverage, while British Columbia, Manitoba and Saskatchewan use public insurers to provide compulsory insurance. Quebec operates a mixed system, with public coverage for bodily injuries and private insurance for civil liability and vehicle damage. Provincial regulations also determine mandatory benefits, coverage requirements and how insurance rates are approved. Consequently, Intact’s Canadian premium growth should not be interpreted as evidence that insurance rates increased by the same percentage in every province, or that all Canadian drivers experienced an identical change.
Ontario provides a useful example of how local conditions influence insurance affordability. According to the Financial Services Regulatory Authority of Ontario, the average annual private passenger auto insurance premium reached $2,218 as of June 2026, compared with $2,120 as of June 2025. However, regional differences were substantial. The Greater Toronto Area recorded an average of $2,868, while rural Ontario averaged $1,791. Those figures cover the broader Ontario market rather than Intact customers specifically. They nevertheless demonstrate how location can materially affect insurance expenses. Provincial regulators also review rate proposals, meaning insurers cannot simply impose every desired pricing adjustment without considering applicable regulatory requirements. For drivers, the result is a market where personal circumstances, geography and government policy can be just as important as national insurance industry trends.
Higher Premium Growth Does Not Mean Every Driver Faces a 10% Increase
The most important distinction for Canadian consumers is that Intact’s reported 10% growth in automobile premiums does not establish a corresponding 10% increase for every existing customer. Insurance pricing depends on numerous factors, including driving records, vehicle characteristics, location, annual kilometres driven and the coverage selected. Two households using similar vehicles can receive different renewal quotes because their risk profiles and insurance histories are not identical. Even an individual driver who has avoided accidents may face a higher renewal premium if the insurer has increased its approved rates or the expected cost of insuring that type of vehicle has changed. Conversely, certain drivers may qualify for discounts or find more competitive coverage elsewhere.
Consumer regulators recommend reviewing insurance coverage carefully rather than automatically accepting a renewal offer. Ontario’s Financial Services Regulatory Authority encourages motorists to compare quotes, investigate available discounts and examine whether their coverage continues to match their circumstances. The Financial Consumer Agency of Canada similarly identifies higher deductibles, home-and-auto insurance bundles and changes to optional coverage as potential ways to manage premiums. However, reducing protection can also increase the financial burden after an accident, particularly if a vehicle remains valuable or is financed. A driver choosing a higher deductible, for example, accepts responsibility for a larger portion of a future claim. The broader lesson from Intact’s results is that rising insurance industry revenue makes understanding renewal prices increasingly important, but individual circumstances still determine the actual bill.
Intact Expects Insurance Premium Growth to Remain Elevated
Intact’s latest outlook suggests that Canada’s insurance industry may continue experiencing substantial premium growth. In its November 3 financial release, the company forecast industry premium growth in the high-single-digit range for personal insurance lines. That outlook covers personal insurance more broadly, rather than serving as a specific prediction for every automobile policy. It also reflects the expected impact of Alberta’s automobile insurance reforms. The company’s expectation indicates that it continues to see conditions supporting higher premium revenue, even as the number of insured vehicles grows at a much slower pace. For households hoping that insurance costs will quickly return to earlier levels, the forecast provides little indication of immediate, widespread price relief.
Alberta’s transition to its Care-First automobile insurance system, scheduled for January 1, 2027, adds another consideration. The provincial government says the reforms are intended to improve access to medical and rehabilitation benefits while reducing costs associated with injury litigation. Alberta also has restrictions on rate increases for qualifying drivers, illustrating how government intervention can influence premium trends independently of insurer decisions. However, the financial effects of reforms and changing claims costs will take time to become clear. Intact’s latest results therefore present two realities simultaneously: its Canadian automobile insurance business is generating strong underwriting results, while premium growth substantially exceeds insured vehicle growth. For Canadian drivers, the central question is whether improving claims experience, competition and regulatory changes will eventually translate into more affordable insurance renewals.
