Canadian insurers often use "Price Walking" - raising premiums for existing customers while offering lower rates to new ones. Audit your 2026 premiums to see your estimated Loyalty Tax.
| Pricing Type | Typical Increase |
|---|---|
| Loyalty Rates (Price Walking) | 8% - 12% / yr |
| New Business Rates (Market) | 2% - 3% / yr |
*Estimation based on 2026 average market 'Price Walking' data. Actual savings require a formal quote from a licensed professional.
"In my 30 years of helping families, I've seen 'Loyalty Taxes' quietly erode home ownership budgets. When calculating your Total Cost of Ownership, insurance is a major variable. I always advise my clients to audit their premiums every 24 months. That $300 or $400 in hidden 'loyalty' fees could be better spent on your mortgage principal or property taxes."
Price walking is an industry practice where insurers offer lower rates to new customers while steadily increasing premiums for existing, loyal customers year over year.
Yes. While regulators in some jurisdictions have moved to ban the practice, it remains legal in Canada for insurers to adjust rates based on historical data and inflation trends.
The most effective way is to request a 're-rate' from your current provider or shop the market every 2-3 years to secure a 'New Business' discount rate.