Ontario and Alberta auto rates increase, Quebec rates decrease

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Ontario and Alberta auto rates increase, Quebec rates decrease

Kanetix.ca rate study finds consumers are missing out on opportunities for savings.

February 6, 2012

Ontario auto insurance rates rose 2.9% in the fourth quarter 2011, according to a rate study by Kanetix.ca, an online quote comparison website. Although rates increased in Ontario, the results from the last several quarters show that rate increases are tapering off; a positive trend. In the third quarter 2011 the result was 4.7%; in the second quarter it was 6.4%, and in the first quarter it was 6.7%.

Meanwhile, Alberta auto rates increased 3.1% and Quebec decreased 2.6%.

The rate study further revealed that many consumers are missing opportunities for savings by not opting for such discounts as:

Multi-line discount: In Ontario, Quebec and Alberta, the majority of shoppers chose not to take advantage of the multi-line discount, which bundles policies from one provider: 55%, 68%, and 63% respectively. For many insurance companies, this discount ranges between five and 10%.

Roadside assistance discount: In Ontario, Quebec and Alberta, more than half of the shoppers indicated they do not belong to a roadside assistance program; thereby missing out on a discount that could help them save up to 15%.

Winter tire discount: In Ontario and Alberta, some insurers offer a discount for driving with winter tires which can save up to 5%; however, in both provinces 20% of drivers indicated they do not change their tires seasonally.

“Consumers can ease the strain on their wallets by reviewing their existing car insurance policy to see if there are discounts they are not yet benefitting from. Savings can also be found by shopping around; drivers should revisit their policy and comparison shop not only upon renewal, but when they experience life changes, such as retirement,” said Janine White, director, marketplace, Kanetix.ca.

In addition to retirement, drivers should examine their policy and shop around whenever they get married, move, purchase a new vehicle, or add new drivers to their coverage.

Depending on the insurer, motorists can also save on their car insurance by paying for their premium in full instead of opting for a monthly plan. Many insurance companies charge an administrative fee for monthly plans.