Average premiums for both personal auto and personal property insurance rose across Canada in the first quarter of 2026, with Alberta once again recording the steepest increases, according to the latest Applied Rating Index from Applied Systems.
Year over year, personal auto premiums were up 11.1% in Q1, while personal property premiums rose 8.6%. On a quarter-over-quarter basis, auto showed early signs of moderation with a 0.8% decline from Q4 2025, whereas property continued to firm, with premiums rising 2.4% over the prior quarter.
For personal auto, all provinces recorded year-over-year premium increases. Alberta saw the largest jump at 21.3%, followed by Ontario at 11.8% and the Atlantic provinces at 9.6%, while Quebec saw a more modest 4.0% rise.
Quarter over quarter, auto rate changes eased in every province except Alberta. Compared with Q4 2025, premiums declined 0.2% in Ontario, 6.5% in Quebec and 1.8% in the Atlantic provinces, while Alberta bucked the trend with a 7.4% quarter-on-quarter increase.
Personal property showed a similar pattern of broad-based annual increases, but with notable regional differences. Alberta led with a 16.2% year-over-year rise, followed by Saskatchewan and Manitoba at 11.2% and the Atlantic provinces at 10.8%. Ontario premiums were up 6.2%, Quebec 4.0% and British Columbia 1.6%.
On a quarterly basis, Alberta, Ontario, the Atlantic provinces, and Saskatchewan and Manitoba all saw further personal property premium increases of 5.4%, 2.8%, 2.7% and 2.9%, respectively. British Columbia and Quebec were outliers, posting quarter-over-quarter declines of 0.6% and 3.2%.
“With severe weather and rising claims costs continuing to shape the personal lines market, the Q1 2026 results highlight a growing divergence — Alberta continues to lead rate increases across both Auto and Property, while moderation is beginning to emerge across both lines in provinces like Quebec,” said Steve Whitelaw, SVP and general manager, Applied Systems Canada. “The Applied Rating Index will continue to track these shifting provincial dynamics as market conditions evolve through 2026.”
The Alberta–Quebec gap reflects deeper structural differences. Alberta has frequently been described as Canada’s catastrophe hotspot, with repeated hail, wildfire and severe storm events driving higher home and auto claims costs and putting sustained pressure on pricing. Even after record insured catastrophe losses nationally in 2024, 2025 still saw significant wildfire and secondary-peril activity, particularly in Atlantic Canada and the Prairies, reinforcing the need for risk-based property pricing.
At the same time, regulators and consumers are pushing hard on affordability, especially in auto. Alberta has introduced a 7.5% cap on renewal rate increases for “good drivers” in 2025 and 2026 and has constrained the average rate change insurers can file across their books, even as bodily injury, repair and theft costs continue to climb. Industry data indicate that, as recently as early 2025, private passenger auto combined ratios remained above 100% in most provinces, with profitability only beginning to recover later in the year as prior rate actions earned through.
The Applied Rating Index underlines that Canadian personal lines remain in a corrective phase. Property pricing is still under upward pressure after back-to-back heavy catastrophe years, while auto is moving toward a more mixed picture, with early signs of stabilization in some provinces and continued stress in others, notably Alberta.
As 2026 progresses, the interaction between weather volatility, inflation, theft and fraud trends, and provincial regulatory responses will be central to how far and how fast these rate trends can continue.
The index data will be closely watched by underwriting, pricing and distribution teams as they calibrate appetite, negotiate renewals and set client expectations across regional markets.
