In 2025, the average annual premium for home insurance rose by 19.3%, increasing from $1,070 to $1,277. Similarly, car insurance premiums saw a 12% uptick, climbing from $845 to $945. These increases have been attributed to several factors, including the rising costs of labour and materials, as well as the financial impact of previous natural disasters.
Despite the profitability reported in 2024, industry experts caution that this trend may not be sustainable. The absence of significant weather catastrophes in 2024 contributed to the favourable financial outcomes. However, with the potential for future natural disasters and ongoing economic challenges, the insurance sector may face pressures that could affect both profitability and premium rates.
For tradespeople and small business owners, these developments underscore the importance of staying informed about insurance market trends. Understanding the factors influencing premium rates can aid in making informed decisions about coverage options and financial planning.
