Car insurance rates decrease except in Ontario

A look at car insurance rates in Alberta, Ontario and Quebec

TORONTO, April 13 /CNW/ – Today, Kanetix(R) (www.kanetix.ca), Canada’s online marketplace for insurance quotes and mortgage rates, released the results of its quarterly review of auto insurance in Alberta, Ontario and Quebec. Rates quoted dropped slightly in Alberta and Quebec but increased by almost 12 per cent in Ontario in Q1 2010 compared to Q1 2009.

Alberta

The results in Alberta showed the rates quoted decreased 1.6 per cent. This result is consistent with the industry-wide reduction of premiums implemented on November 1, 2009 for mandatory basic auto insurance. As well, almost three-quarters of the shoppers getting quotes indicated that they changed their tires seasonally; taking advantage of a new discount that can help a shopper save up to 5 per cent.

Ontario

In Ontario, an 11.6 per cent increase was observed, suggesting that Ontario drivers are feeling the effects of rate increases approved in 2009. Reforms have been announced which, it is anticipated, could slow or possibly even reverse rate increases. These changes are not expected to come into effect until the second half of 2010.

Quebec

Quebec drivers obtained quotes that were 4.6 per cent lower this year than last. Like Alberta, Quebec drivers used Kanetix to explore their money-saving discount options. In particular, more people (6 per cent) opted to see how much could be saved with a two-year policy commitment. In addition, 7 per cent more quotes were obtained by shoppers willing to bundle their home insurance with their auto insurer making them eligible for the multi-line discount.

“Policyholders should explore their options annually to see if money-saving opportunities are available,” says George Small, Co- founder of Kanetix Ltd. “It doesn’t matter if they live in Alberta, Ontario or Quebec. Drivers should compare their insurance rates and coverage with other options on an annual basis. Comparison shopping provides drivers an opportunity to find a better fit, or new opportunities to save, like previously unavailable discounts.”

Drivers should keep the following tips in mind to help get the lowest possible auto insurance rate:

Consider discounts

There may be discounts that you are not already getting that you may be eligible to receive. For example, some insurers offer a discount if you change your tires seasonally saving you up to 5 per cent.

Think about raising your deductibles

Policyholders with deductibles set to $500 could save up to 5 per cent by raising them to $1,000. Keep it affordable though because this is how much you’ll have to cover should you need to submit a claim.

Don’t pay for optional coverage you do not need

Review your policy to see if there are optional coverages or features included in your current policy that you may not need. For example, if you drive an older car you may no longer want collision coverage, comprehensive coverage, or both.

Consider the cost of paying monthly

You could save money by paying your annual premium all at once, instead of setting up a monthly payment plan. Many companies will charge you a little extra to cover the cost of administering your payments every month.

About the quarterly review

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 Q1 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.

About Kanetix

Launched in October 1999, Kanetix is Canada’s leading national, online insurance and mortgage marketplace. The Kanetix insurance and mortgage shopping service brings together insurance companies and mortgage suppliers 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 and mortgage quotes from a variety of Canadian insurance and mortgage 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 insurance or mortgage supplier and purchase the product over the phone.

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