In my last newsletter, I asked Globe readers how often you were paying for car damage from accidents out of pocket. What you shared didn’t just surprise me, it left seasoned auto experts stunned.

Out of the 372 people who completed our survey, 77 per cent said they’ve chosen to pay for vehicle damage themselves rather than file a claim with their insurer.

Among those who paid out of pocket, 58 per cent spent up to $2,000 while 23 per cent paid for damage between $2,001 and $3,000.

A further 16 per cent forked over between $3,001 and $5,000, a number that surprised George Iny, president of the Automobile Protection Association, a consumer advocacy group. “That is a crisis in insurance,” he said.

While covering the cost of minor damage is not new, few people used to spend more than $2,000 out of pocket after a bump or collision, said Iny. “Now, $5,000 is the new $2,000.”

Canadians are paying plenty for car insurance – and premiums have been soaring in many parts of the country. In Ontario, drivers saw an 8.3 per cent year-over-year increase in October, or the equivalent of about $250 on $3,000 in annual payments.

So it’s hardly surprising that fear of rising premiums was by far the main reason for settling privately, followed by concerns around losing a no-claims discount.

Those fears are justified. Data from MyChoice, a Canadian insurance comparison platform, found that after an at-fault accident, premiums for Ontario drivers jump 96 per cent, on average.

So a 24-year-old man driving a Ford F-150 and paying $300 a month could see his monthly rate soar to around $590 after an at-fault claim.

Nearly 40 per cent of those who responded to our poll said they paid between $201 and $400 for car insurance. For those who did file a claim and saw rates increase, around 28 per cent reported a spike between $101-$400. A small number of those who saw claims spike – about 5 per cent – saw premiums soar more than $400.

“It’s become very expensive, and so people are a bit jittery about having anything on their record,” said Iny. Those who didn’t claim generally had a duty to report to their insurance anyway, but, he said, “I’m not faulting them.”

Iny doesn’t see these issues to the same extent out of provinces with public insurance such as Saskatchewan or Manitoba. Quebec, with its public-private model, has also delivered more stable premiums, he said.

Rob de Pruis, national director of consumer and industry relations with the Insurance Bureau of Canada, which represents private insurers, said premium spikes can be prevented with policies that include accident forgiveness. (Those typically come with an added fee and not everyone is eligible.)

There are also risks to paying out of pocket, he said. “They might be paying for damage that they didn’t cause, or maybe they’re paying too much.”

So what’s driving higher premiums in private insurance markets? Mr. Iny points to expensive litigation, along with rising repair costs for increasingly elaborate vehicles, an inefficient claims process, and a lack of political will to pursue reforms.

The takeaway: despite rising insurance premiums, many Canadians are still covering collision and damage costs out of pocket – even if it means shelling out $5,000.

“Self-insuring… that’s really what they’re doing,” Iny said.

Have you seen your auto insurance premium soar after filing a claim? Check out my guide to auto insurance here and drop me a line at mpostelnyak@globeandmail.com