Canadian prices for passenger-vehicle parts, maintenance and repairs rose 2.2% from July 2025 to July 2026. Maintenance and repair services alone rose 3.7%, while parts and supplies rose 1.2%. Over the same period, passenger-vehicle insurance premiums increased 6.1% and the all-items Consumer Price Index rose 3.0%.
For this analysis, our team downloaded Statistics Canada’s current CPI table 18-10-0004-01 and checked the July 2026 CPI release, AIA Canada’s workforce analysis and FSRA’s claims-cost guidance.
Keep reading to compare repair and insurance inflation nationally and by province, understand why they do not move together and see what you can check before authorizing work.
How Fast Are Car Repair and Insurance Prices Rising?
| Canada CPI category | Canada CPI category |
|---|---|
| All items | +3.0% |
| Passenger-vehicle parts, maintenance and repairs | +2.2% |
| Maintenance and repair services | +3.7% |
| Parts, accessories and supplies | +1.2% |
| Passenger-vehicle insurance premiums | +6.1% |
CPI measures changes in consumer prices. It does not measure an insurer’s claim cost, the bill for one repair or the quote for one driver. Use the dates and category names when comparing these figures with another study.
Repair and Insurance Inflation by Province
| Province | Parts, maintenance and repairs | Vehicle insurance premiums |
|---|---|---|
| Newfoundland and Labrador | -0.1% | +6.6% |
| Prince Edward Island | +1.0% | +5.3% |
| Nova Scotia | +1.9% | +6.8% |
| New Brunswick | +2.1% | +5.0% |
| Quebec | +1.6% | +0.6% |
| Ontario | +3.1% | +1.0% |
| Manitoba | +5.4% | +6.5% |
| Saskatchewan | +3.0% | +4.4% |
| Alberta | -0.4% | +29.4% |
| British Columbia | +2.6% | 0.0% |
The table compares July 2026 with July 2025 using Statistics Canada’s index values. It shows price movement, not average dollars. A negative or zero reading means the index did not increase over that 12-month comparison; it does not mean repairs or insurance are inexpensive.
Why Insurance and Repair Inflation Do Not Match
Repair prices are only one input into insurance premiums. Insurers also price expected collision frequency and severity, theft, injury and accident-benefit costs, fraud, weather losses, vehicle mix and other claim expenses. Provincial insurance systems and the timing of rate changes also differ.
FSRA notes that sensors and cameras can make physical-damage repairs more complex because a bumper repair may also involve technology in the bumper. Calibration, scanning and specialized labour can increase a claim even when the visible damage looks minor.
Why Skilled Labour Still Matters
AIA Canada reported in May 2026 that 65% of mechanical and collision shops in its 2023 labour research experienced increased technician turnover in 2022, while vacancies doubled between 2021 and 2022. Those figures are historical survey findings, but the association says recruitment and retention remain current industry pressures.
Vehicle technology also changes the work. Electric powertrains, driver-assistance systems and electronic diagnostics require specific training and equipment. That can affect labour time, shop availability and the number of facilities qualified for a repair.
What to Check Before You Approve a Repair
Ask for a written estimate that separates parts, labour, diagnostics, calibration, shop supplies, taxes and storage. Confirm whether parts are original-equipment, aftermarket, recycled or repaired, and what warranty applies to the work.
For maintenance, compare estimates from qualified shops and follow the manufacturer’s schedule. For an insurance claim, contact the insurer before authorizing repairs or teardown, and ask which costs, parts and facilities it will approve under the policy. Deductibles and policy limits may apply.
Read More: See How ADAS Calibration Affects Insurance Claims