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Global disruptions leading to insurance claim delays and rate increases across Ontario

Why is there such a wait for new cars? What is causing my property insurance rate to increase? How come it’s taking so long get new parts and materials?

It is no secret that global supply chains, for the home and auto industries and many others, have been in limbo trying to recover from the COVID-19 pandemic.

With time, many industries are slowly bouncing back and regaining their footing. However, we are now seeing new disruptors causing stress for insurance companies and drivers or homeowners across Ontario. 

What disruptions?

There are three areas that have been impacted: Inflation, increasing standards for technology and quality, and supply chain and shipping disruptions.

A common stressor across many Canadian industries, from groceries to gas and housing prices.
The home and auto insurance industry has not been left untouched by rising inflation either. From October 2021 to October 2022, the Canadian auto industry saw the average monthly consumer price for vehicle parts, maintenance, and repairs increase by 7.4%, according to Statistics Canada.

In 2022, many homeowners saw a 5% increase in their insurance rate due to inflation, effects of climate change and extreme weather damage, and more costly repairs.

Changes in standards
Touchscreens in vehicles, smart homes, driver assistance. Today, we are very familiar with exciting technology advances and developments. But many drivers and homeowners may not take into consideration the cost of building or repairing these technologies into their new car or home. These systems involve complex sensors and computerized components that are expensive to repair, and may take more time than usual to fix or replace which can impact your coverage.
Many companies are also trying to offer eco-friendly options, but with a hefty price tag. When something goes wrong or breaks, those dealing with the claims might be left questioning why everything costs so much and why it’s taking so long to get their claim resolved.
Supply Chain disruptors
From a global shortage of semiconductor chips for new vehicles to delayed and pricey material shipping for new homes, homeowners and drivers are feeling the frustration.

Vehicle and home building parts are now much more expensive, especially steel, lumber, and other needed materials. On top of shipping delays, many companies within the labour force are trying to work understaffed in high-demand times, and with increasing costs of labour and product.

Drivers are also feeling the strain as they notice it may take longer than usual to repair their car, even for simple fixes. In 2022, the length of car rentals involving repairable vehicles increased by 5.7 days from 2021. For drivers who have transportation replacement coverage included in their auto insurance, the cost of a rental car (when applicable) will not be a worry. However, with delays for repairs, many drivers may see their insurance coverage for rental cars quickly being maxed out. Reach out to your auto insurance broker to understand your transportation replacement coverage.

How do these disruptors affect my insurance claims?

Currently, making an insurance claim may not be as simply as it once was. Here are some of the ways that your claim could be affected:

  • For cars in an accident that are deemed a “write-off”, it may be more difficult to find a replacement or order a new car in a timely manner. If the damage or problems are deemed repairable, you could see double the time needed for your car to be repaired due to lack of labour and increased shipping time for parts.

  • Even if you contact your home insurance provider when a problem arises, it can take double the time to resolve and get a professional to fix the issue. You may also see a rising price tag for replacement parts or materials, depending on the age and needs of your home.

Ways to save

Due to inflation, the cost of home and auto insurance rates are increasing to ensure you are covered for any problem that may arise. But did you know there may be ways to save on insurance? Here are some questions to ask yourself and your insurance broker:

  • Do you have winter tires?

  • Can you bundle your home and auto insurance policies?

  • Can you increase your deductible?


  • Are there improvements that you could make to your home to help save on insurance? Some types of home improvements can result in savings in insurance. Such as, installing a sump pump or a backwater valve.

We’re here to help.

Currently insured with OTIP? If you have questions or need to update your existing policy, call us at 1-800-267-6847. You can also check out our self-serve options or use our app.

If you would like to get a quote for a new policy, call us at 1-866-561-5559 or get a fast online quote!


  1. “Consumer Price Index, monthly, percentage change, not seasonally adjusted, Canada, provinces, Whitehorse and Yellowknife — Transportation” Statistics Canada.

  2. "Ontario home insurance rates to rise 5 per cent or more in 2022” CTV News.

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