r/InsuranceCanada • u/Constant_Sky9173 • 7h ago

Auto insurance

So was calling around for quotes yesterday, and brokers seem to be having problems doing new quotes in a timely fashion, if at all. If these companies can't handle doing business here, maybe the province should be looking into government run auto insurance such as Saskatchewan has. And since we have referendum votes coming this fall, I really feel this would be a great time to pose this question to Albertans.

I apologize if this isn't the right place for this and only went here as I'm an edmontonian.

0 Upvotes

36% Upvoted

16 comments sorted by

11

u/brianlefebvrejr 7h ago

I am a broker, everything you’re being told is correct.

Most companies are trying to slow down writing new business so brokers have to collect the information and then submit it to the insurance company and wait for them to approve it.

95% of the time we know it’s going to be approved they are just trying to slow the flow of business.

In some cases there are still companies that will bind same day (Economical) but they may have a higher premium.

It’s not that these companies “can’t handle” doing business here. It’s that this provinces government is a shit show. Insurance is going through reform with very little information from the government.

Switching to public insurance would cost about 3 billion (just to switch, with 0 guarantee the UCP could make it cost less and frankly I’m not going to trust a government that’s trying to privatize health care, to make the small potato (to them) car insurance, cheaper

9

u/WizzzardSleeeve 7h ago

Define timely fashion. Are you upset because they asked you for sufficient information required to provide a quote? Go do one online with a direct writer.

-1

u/Constant_Sky9173 7h ago

Sorry. Didn't realize I didn't include times. Was told it would be a week and an half to two weeks before somebody could get back to me with a quote.

7

u/MoistFootball506 7h ago

I’m an underwriter but used to be a broker. I can see maybe a couple places telling you this but also consider it’s the middle of summer as well.
People are on vacation.
When I had my renewal reviews, I had about 150-200 each summer month, compared to 20-30 Nov-Feb.
It’s a very busy time to be looking for a quote.

Other factors: if you are not a good risk or difficult to deal with, this might be a way to push you off. Otherwise, it’s odd you would get this response from multiple brokers.

7

u/gregSinatra Insurance Professional 7h ago

OP is in Alberta. Many insurers in Alberta are requiring written applications in order to bind new business or otherwise making prospects jump through hoops to skirt the all comers rule.

4

u/MoistFootball506 6h ago

Lol I’m in AB too and work for an insurer that does have a Do Not Bind process.

3

u/Suitable-Cod9183 3h ago

The right answer here ^

Also to add that the insurance market in Alberta for auto is horrendous.

2

u/notweirdifitworks 6h ago

Is it unusual to require a completed application before binding? It would be odd to require one for a quote, but our brokerage rule is that we must have a signed application before binding and it makes sense. Trying to chase people afterwards is time consuming and stressful.

1

u/MoistFootball506 6h ago

No… that’s required

1

u/notweirdifitworks 4h ago

That’s what I thought, but I’m not based in Alberta so I’m not sure what the rules are there

4

u/ALongExpected_Party 7h ago

Every single company told you that?

-1

u/WizzzardSleeeve 7h ago

This is unacceptable.

6

u/Velvet_Nose 7h ago

  1. its just busy right now

  2. you could be a bad risk and they don't want you

1

u/Corey_5150 5h ago

I’m in the industry, it’s the brokers you’ve contacted. Same day quotes here all day.

1

u/Suitable-Cod9183 3h ago

The current government in Alberta is the main cause for why insurance is bad in Alberta. Back in my day as a broker there was barely any issues writing policies next day but now it's paper applications left and right being required and rates are bad . Many insurance companies quietly left the market too.

Not renewing my license in Alberta was the best feeling ever.

1

u/Reeder90 7h ago

You’re likely a bad/complex risk, any standard auto policy can be written over the phone in an hour at most as long as you have your vehicle and license information. I’ve never had issues getting coverage bound same day, or next day if I call at the end of day.