Canadian Underwriter

How you could save an aging Ontario auto client $14,000

July 10, 2020   by Greg Meckbach

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If you are not consistently shopping around for a better deal for your Generation X and Boomer-generation auto clients, they could be paying thousands extra after reaching middle age – unless they happen to find a lower rate from from one of your competitors.

When analyzing data from its own quoting engine, discovered some carriers are offering much lower premiums to older drivers than others., which delivers sales leads to brokers and direct writers from consumers shopping online for home and auto coverage, compared rates among carriers in Ontario, Alberta and Quebec.

In some cases, the savings could total $14,000 between the time the motorist turns 49 and the time they turn 75.

When a motorist is in their early 40s, prices can start to diverge significantly among different auto insurers, said in a release July 8.

So as a broker, what questions should you ask your markets about their approach to setting auto insurance rates for drivers 40 and over?

Canadian Underwriter posed this question to co-founder and CEO Justin Thouin.

“Brokers need to be talking to carriers regularly about what their underwriting appetite is and what their target markets are. This line of communication needs to be happening constantly,” replied Thouin.

In a recent blog post, discussed what happens if a client turns 49 and stays with the same auto insurer until they are 75. looked at the rates that were quoted by different insurers from the time the driver turned 49 and compared for that driver’s older years.

Over 26 years, an Ontario driver could save $74 to $586 a year – or $1,850 to 14,650 between the time they are 49 and 75.

“As a rule, I would advise that Canadians compare insurance providers every time their policy is up for renewal,” Thouin said in the July 8 release. “However, as drivers grow older, they may become more complacent with their insurance, especially as insurance companies start offering loyalty discounts. However, clearly, our data shows that comparing can save you a lot of money.”

So when it comes to rating motorists from Generation X and Baby Boomer age groups, there are a lot of ways rating strategies can differ among carriers, Thouin told Canadian Underwriter.

“Many factors are looked at as part an underwriting strategy, and those strategies differ by company. For instance, what is that company’s historic results, what regions do they tend to write in, etc.” said Thouin.

“Insurance companies generally want to attract and retain those who are older because their lifestyles tend to make them good consumers. They’re established, have long driving histories, and they may have kids or own their home, allowing a chance to sell more policies. With more insurers looking to attract this demographic, pricing competition will be more intense.”

The Baby Boom generation refers to people born during the 20 years after 1945, while Deloitte notes the term Generation X often refers to those born between 1965 and 1980.

In’s research on rates for drivers over 40, the discrepancy among carriers was about the same in Alberta as in Ontario, though less pronounced in Quebec.

Over 26 years, an Alberta driver could save an average of $52 to $588 annually – between $1,850 to and $14,650 in total, reported.

In Quebec, found the annual savings could be $150 to $354, or anywhere from $3,750 to $8,850 between the time the client is 49 and 75 years of age.


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