TORONTO, April 8 2009 – Today, Kanetix, Canada’s online marketplace for insurance quotes and mortgage rates, released the results of its quarterly car insurance premium study. The study, designed to spot and highlight the pricing trends of car insurance quotes in Ontario, identified a 1.9 per cent decrease in the average of the lowest rates quoted for auto insurance in Q1 2009 compared to Q1 2008.
If the trend for the past year is any indication, insurance companies in Ontario are increasing their rates. However, for the second quarter in a row a decrease in the average of the lowest rates quoted was noted through the Kanetix quote comparison service. While the study findings appear to contradict industry trends, further analysis highlights interesting detail about the drivers comparing quotes through Kanetix.
The Kanetix study noted that the percentage of vehicles that were 6 years or older grew by almost 3 per cent in Q1 2009. Perhaps not significant on its own, but this growth was mostly at the expense of new models which dropped over 3 per cent. As cars age, drivers start to drop optional coverages like comprehensive and collision resulting in lower premiums. The sales of new cars have been in decline for a number of months as consumers hold onto their current car longer. This behaviour is now reflected in the car insurance quotes obtained through Kanetix.
The introduction of the winter tire discount also had an impact. In the first quarter of 2009, over 61 per cent of Ontario drivers indicated they changed their tires seasonally making them eligible for this discount. This discount was not available in Q1 2008, and its introduction has helped many Ontario drivers obtain a lower car insurance rate.
“Now, more than ever, people are looking for ways to save money,” suggests George Small, Co-founder of Kanetix Ltd. “Across Canada, drivers are using Kanetix.ca as a tool to help them achieve this goal. With one quick visit, drivers can easily compare competing insurers’ quotes to see if there is a cheaper option for the coverage they need.”
“Rates constantly change over the year,” continues Mr. Small. “Comparing quotes is the only way to know you’re not overpaying for your coverage, and making sure you’re not missing out on new initiatives or discounts.”
As an online auto insurance shopping service that provides real-time quotes from Canada’s top insurers, Kanetix is in a position to bring attention to the options available to Canadian drivers when it comes to insurance. Insurance rates change often and vary between insurers, so comparing car insurance quotes is an easy way to see if there are opportunities for savings.
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 Q1 2009 (i.e. January, February and March) 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.
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.