TORONTO, July 14 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 2.4 per cent decrease in the average of the lowest rates quoted for auto insurance in Q2 2009 compared to Q2 2008.
While the findings appear to run counter to industry trends that suggest car insurance is on the rise, the Kanetix study is a reflection of not only changes in rates but also changes in the purchasing behaviours and demographics of insurance shoppers. For example, both vehicles and drivers were, on average, older this year over last.
- Drivers appear to be keeping their current cars longer. On average, the vehicles quoted on Kanetix were 3 months older in Q2 2009 than the same quarter last year. This is important to note because as cars age, drivers looking to save money on their insurance often drop optional coverages like comprehensive and collision.
- While the number of consumers obtaining insurance quotes on Kanetix is higher than last year, the average age of drivers has increased by almost one (1) year. This is significant because in general, insurance rates are lower for older, more experienced drivers.
Ontario drivers are also becoming more cost conscious. Consumers are increasingly taking advantage of money-saving options such as the winter tire and multi-line discounts offered by insurers. This trend has also contributed to the lower average auto insurance rates quoted to consumers on Kanetix.
“The economy may be a driving force behind the trends that we’re seeing,” reveals George Small, Co-founder of Kanetix Ltd. “We’ve responded to the changing needs of consumers by including more insurers and choice on Kanetix including the recent addition of two competitively-priced auto insurers in Ontario.”
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).
The results of the study are determined by comparing the average lowest auto insurance premium quoted online for Ontario shoppers through Kanetix in Q2 2009 (i.e. April, May and June) 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.