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, Oct. 7 /CNW/ - Today, Kanetix(R) (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 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).
...