A look at car insurance rates in Ontario, Quebec and Alberta
TORONTO, October 5, 2010 - Kanetix® (www.kanetix.ca), released the results of its quarterly review of the online auto insurance rates quoted in Ontario, Quebec and Alberta through its comparison service.
In Ontario, auto insurance rates quoted on Kanetix increased 19.3 per cent in Q3 2010 compared to the quotes obtained in Q3 2009.
Ontario drivers are continuing to feel the effects of rate increases implemented in the last 12 months. Since the third quarter of 2009, the majority of active insurance companies in Ontario have increased their rates at least once and in some cases twice.
On a positive note, the trend may be changing. The year-over-year increase in rates quoted was not as great in September, as it was in July and August, suggesting that rates could be stabilizing in response to the new auto reforms that took effect September 1, 2010.
For the first time in a year, Alberta auto insurance rates quoted on Kanetix increased. Alberta rates rose by 7.6 per cent in Q3 2010 compared to Q3 2009, despite last November's 5 per cent decrease on mandatory auto insurance premiums.
Several factors are at play but based on Kanetix data, part of the increase can be attributed to more drivers selecting lower deductibles on the quotes they obtained. Lower deductibles offer less financial risk in the event of a claim but will increase your premiums. Encouragingly, another 5 per cent decrease will be coming into effect on November 1st, which could offset some of the impact of increasing insurance costs.
Quebec car insurance shoppers obtained quotes 2.8 per cent lower in Q3 2010 compared to the same period last year. This decrease, in part, is due to the shopping behaviour of Quebec auto insurance consumers who, when shopping around, increasingly took advantage of discounts like the multi-line discount, roadside assistance, and group discount.
Who's in your glove box?
Rates not only vary across Canada, but they also vary among the various insurance providers within each province.
"Drivers who haven't comparison shopped their auto insurance needs, may not be with the insurer that can offer them the best price," suggested George Small, Co-founder of Kanetix Ltd. "To avoid overpaying for coverage, drivers must find the insurer that is the right fit for them at the time, and this is best accomplished by getting competing quotes."
"That's where comparison shopping on Kanetix.ca can help," continued Mr. Small. "The more quotes a driver gets, the more choices they'll have, which often results in substantial savings."
Policy renewal time is not the only occasion when a person should check that their provider is still the right insurer for them. Mr. Small recommends that drivers check their current insurer's offering by comparison shopping when:
Purchasing a new car
Adding teenage drivers to your policy
About the quarterly review
Intended as a tool to spot and highlight the pricing trends of car insurance, the Kanetix review is released quarterly. Kanetix believes this to be an accurate reflection of what consumers are seeing when they get their renewal notice, and what they see when they shop around. The study includes all drivers, regardless of their driving or insurance history, and is based on the lowest rate quoted, no matter which company provided it (e.g. direct writing companies or broker-based insurers).
The results are determined by comparing the average lowest auto insurance premium quoted online in each province through Kanetix in Q3 2010 with the average from the same period in 2009. The results, and interpretations, are based on the information as entered by the shopper and may not represent their accurate driving profile or vehicle data. As such, Kanetix can make no representation or warranty, either expressed or implied, as to the accuracy of this information.
Launched in October 1999, Kanetix is Canada's leading national, online insurance, mortgage and credit card marketplace. The Kanetix comparison shopping service brings together insurance, mortgage and credit card providers in a one-stop shopping environment for consumers looking to save money. Each day, thousands of consumers visit the Kanetix website at www.kanetix.ca to compare not only insurance and mortgage quotes but also credit cards from a variety of Canadian financial product suppliers. Users select the product of their choice, obtain a quotation and complete an online application or, with the help of Kanetix, connect with the provider to purchase or apply for the product over the phone.
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