Fourth quarter auto insurance rates higher in Ontario; lower in Alberta and Quebec
Kanetix's revised quarterly, year-over-year, review now looks at the auto insurance rates consumers are acting on in their search for coverage.
TORONTO, January 12, 2011 - Kanetix® (www.kanetix.ca) has tuned up its quarterly auto insurance rate review and has today released the results. Personal auto insurance was 9.5 per cent higher in Ontario in Q4 2010 while 4.9 per cent and 0.4 per cent lower in Quebec and Alberta respectively as compared to Q4 2009.
Ontario auto insurance was on average 9.5 per cent higher in Q4 2010 as compared to Q4 2009. Reforms came into effect in the previous quarter which saw many insurers decrease rates. However, due to increases implemented prior to the reforms, auto insurance consumers could still see rates higher than what they were paying last year when they get their renewal.
Quebec auto insurance decreased 4.9 per cent in Q4 2010 as compared to Q4 2009. Quebec drivers increasingly used Kanetix to explore money-saving options which appears to be the reason behind the decrease. For example, more drivers took advantage of discounts this year; 3.5 per cent more indicated they participated in a roadside assistance program. As well, more drivers chose to opt out of optional coverages like collision and comprehensive.
Alberta auto insurance decreased 0.4 per cent in Q4 2010 as compared to Q4 2009. This result is consistent with the industry-wide reduction of premiums implemented on November 1, 2010. The review further observed an increase in younger drivers with limited driving experience visiting Kanetix to shop around. A 5 per cent growth in drivers under the age of 25 and a 6 per cent growth in drivers licensed less than 5 years shows that online comparison shopping is a convenient and easy way to find competitively priced Alberta auto insurance, no matter what the age or driving history.
"Comparison shopping empowers consumers," suggested George Small, Co-founder of Kanetix Ltd. "It gives auto insurance consumers options. The more quotes a driver gets, the more choices they'll have, which when compared to what they would have paid without shopping around, can often result in substantial savings."
Kanetix's quarterly review of auto insurance is intended as a tool to spot and highlight the pricing trends of car insurance.
In the past, the rate review looked at the lowest quotes delivered to all shoppers. The new fine-tuned version however, considers only those quotes where shoppers requested that Kanetix introduce them to the insurance provider. These drivers are doing more than just kicking the tires, they are in the market for auto insurance at the time they are comparison shopping.
The results are determined by taking an average of all the quotes which were acted upon by shoppers in Q4 2010 and comparing that to the average from the same period in 2009. Only the quote of the provider who the shoppers connected to via Kanetix.ca were considered. All 'introductions' were included, regardless of their driving or insurance history, and no matter which company provided the quoted rate (e.g. direct writing companies or broker-based insurers).
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 was Canada's first online insurance marketplace. The Kanetix marketplace has since grown to encompass mortgage rate and credit card comparisons as well, making it Canada's online insurance, mortgage and credit card comparison service.
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 insurance quotes, mortgage rates and 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.
For more information, visit Kanetix.ca or contact: