Car insurance increased 15.2% in Ontario but declined in Quebec, Alberta
TORONTO, July 7, 2010 - Today, Kanetix® (www.kanetix.ca), Canada's online marketplace for insurance quotes and mortgage rates, released the results of its quarterly review of auto insurance rates in Ontario, Quebec and Alberta.
The results varied considerably between provinces when comparing year over year quoted rates in the second quarter of 2010; rates increased by 15.2 per cent in Ontario, fell 8.2 per cent in Quebec and dropped slightly in Alberta.
In Ontario, auto insurance rates increased 15.2 per cent in Q2 2010 compared to Q2 2009, suggesting that Ontario drivers are continuing to feel the effects of last year's and this year's approved increases. Effective September 1, 2010 reforms are being implemented that are expected to provide some pricing stability. Even though drivers have seen their rates increase, the amount varies significantly by insurance provider. In times of rapid rate increases, it's important for drivers to comparison shop their auto insurance to ensure they are receiving that best value for their insurance dollar.
Quebec drivers obtained quotes that were 8.2 per cent lower in Q2 2010 compared to last year. Rates fluctuate across providers and Quebec drivers are using Kanetix to explore money-saving options. Along with comparison shopping, Quebec drivers are increasingly taking advantage of discounts. In particular, over 8 per cent more drivers opted to see how much could be saved with a two-year policy commitment, and almost 5 per cent more were willing to bundle their home and auto insurance with the same insurer to save money.
Alberta auto insurance was relatively stable with a decrease of 0.2 per cent in rates quoted. This is the fourth consecutive quarter where Alberta car insurance decreased. Decreasing rates benefit drivers, especially when a person comparison shops and finds a provider with even lower rates. Often shoppers discover the provider that offered the best rate last year may no longer offer the lowest rate this year.
"Every year, on renewal, drivers should comparison shop their insurance rates," suggests George Small, Co-founder of Kanetix Ltd. "Only by comparison shopping can drivers discover opportunities to lower how much they pay for auto insurance."
How much a driver is able to save by comparison shopping can be significant. For example, Ontario shoppers were recently asked how much they were saving after getting quotes through Kanetix. Over 40 per cent of those asked said they saved money and their average savings was $500.
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 Q2 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 marketplace. The Kanetix insurance information and shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.
For more information, visit www.kanetix.ca, or contact: