Ontario car insurance rates increase an average of 5.3 per cent

Drivers should be prepared for rising premiums in 2010, according to quarterly auto insurance rate study from Kanetix.ca

TORONTO, Jan. 13 /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 5.3 per cent average increase in the lowest auto insurance rates quoted on Kanetix in Q4 2009 compared to Q4 2008. The increase, consistent with rate changes previously approved and announced by Ontario’s auto insurance regulator, means drivers should prepare themselves for rising car insurance premiums in the months ahead.

“Ontario car insurance rates appear to be on the rise and drivers have more reason than ever to watch what they are paying in insurance,” says George Small, Co-founder of Kanetix Ltd. “It’s important for drivers to know they have choices. There are money- saving options available that may help them keep their car insurance premiums as low as possible.”

As an online auto insurance shopping service that provides real- time quotes from many well-known competing insurers, Kanetix makes it easy for drivers to shop around. Too often people assume that competing insurers offer similar rates; when, in fact, rates can vary wildly between providers. No two companies are the same and the company with the lowest rate when a policy was first purchased may not be the company with the lowest rate today.

While shopping at Kanetix.ca, 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. Another example, the group discount, may allow drivers who belong to certain employer groups, trade unions, or alumni and professional associations to qualify for savings of up to 10 to 20 per cent.

Think about raising your deductibles

The higher your deductibles the lower your premium. For example, 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 included in your current policy that you may not need. For example, if you drive an older car and your collision and comprehensive deductible is set to a dollar amount that is more than the value of your car, it may no longer make sense to: a) keep these coverages, or b) keep these coverages at the current deductible amount.

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, and what prices consumers 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 Q4 2009 (October, November and December) 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 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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