Auto Insurance Rates confuse 59% of Ontario clients

In Ontario, 59 per cent of individuals with auto insurance are unsure how insurers are calculating their rates and may therefore be unintentionally paying higher premiums, according to a recent President’s Choice Financial/Ispos Reid Survey.
In addition, 64 per cent with auto insurance exhibit interest in researching alternative insurers based on price and product comparison. However, the survey found that this response decreases with age with only 53 per cent of respondents aged 55 and older likely to shop around as compared to 77 per cent of those aged18 to 34. Women are seven per cent more likely than men to investigate alternative insurance providers.
“Added benefits like 24/7 hassle-free claims service, a disappearing deductible, or discounts for applying online all add to better consumer value,” Geoffrey Wilson, senior vice president, investor relations and public affairs of Loblaw Companies Ltd., says.
A disappearing deductible is a unique feature that rewards drivers with a reduction on their deductible for a pre-determined claim-free period, therefore after a set amount of time with a clean driving record the deductible will disappear completely.
According to the survey, 90 per cent of insureds view a disappearing deductible as a “real benefit” and 82 per cent say it may help them determine which provider to sign with.
The findings reflect results of an Ipsos-Reid poll conducted from March 22 to March 24 and March 29 to March 31, 2005. The survey was conducted based on a random sample of 840 adult Ontario residents who had auto insurance at the time of the interview. Data was weighted to ensure a regional and age/sex composition representative of the Canadian population according to the 2001 Census.