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Shifting consumer behaviour triggers decrease in average car insurance quotes for Ontario drivers
Quotes decline by 2.8%; Factors such as fewer young drivers and fewer new cars on the road result in decrease of average rates for Ontario drivers.
TORONTO, October 7th, 2009 - Today, Kanetix® (www.kanetix.ca), Canada's online marketplace for insurance quotes and mortgage rates, released the results of its Ontario quarterly car insurance premium study. The study identified a 2.8 per cent decrease in the average of the lowest rates quoted for Ontario auto insurance in Q3 2009 compared to Q3 2008.
The decrease appears to be the result of changes in consumer behaviour and demographics, not cheaper car insurance rates.
- With a higher youth unemployment rate in the summer of 2009, it is not surprising that fewer under 25-year old drivers completed quotes for auto insurance. This year, 32 per cent of quotes included a driver under the age of 25; last year the number hit 36 per cent. This is significant because in general, insurance rates are higher for younger, less experienced drivers. With fewer visitors in this age bracket getting quotes online, the overall lowest average rate decreased.
- Drivers appear to be keeping their current cars longer. On average, the vehicles quoted were almost three months older than last year's study. As cars age, drivers looking to save money on their insurance often drop optional coverages like comprehensive and collision thereby reducing their premiums.
- A greater percentage of Ontario drivers this year opted to take advantage of the multi-line discount. Typically this discount can save a policyholder around five per cent.
"The economy is continuing to play a significant role in what we're seeing," suggests George Small, Co-founder of Kanetix Ltd. "The best tips for drivers concerned about saving money is to compare rates from a variety of insurance providers, take advantage of available discounts and, if you can afford it should you have to submit a claim, increase your deductibles."
As an online auto insurance shopping service that provides real-time quotes from many well-known competing insurers, Kanetix is in a unique position to empower insurance consumers with the tools needed to not only anticipate car insurance trends, but also to compare auto insurance quotes to find the best rate for the car insurance coverage they need.
About the study
Intended as a tool to spot and highlight the pricing trends of car insurance, the Kanetix study is released quarterly. Kanetix believes this study to be an accurate reflection of what auto insurance consumers are seeing when they get their renewal notice from their current insurer, as well as the prices they see when they shop around for coverage. 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 of the study are determined by comparing the average lowest auto insurance premium quoted online for Ontario shoppers through Kanetix in Q3 2009 (i.e. July, August and September) with the average from the same period in 2008. The results, and resulting interpretations, are based on the profile 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.
About Kanetix
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, please contact:
George Small
Co-founder, Kanetix
(416) 599-9779 ext. 202
-30-
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