November 10, 2006 by Canadian Underwriter
A recent study by kanetix, a Canadian online insurance marketplace, suggests shoppers are getting online insurance quotes that are about 25% cheaper on average than what they were getting at this same time last year.
The study also concluded that auto insurance premiums can vary by over Cdn$900 for the same coverage.
Supporting its contention that Ontario auto insurance quotes are cheaper this year than last, using Ontario as an example, kanetix compared the average lowest auto insurance premium quoted at kanetix.ca in the past three months with the average lowest premium quoted from the same period in 2005. The survey found the average lowest price had decreased by over 25%.
“Over the last year increased competition in the auto insurance industry has led to more aggressive marketing, new innovative features and discounts, and most importantly, lower insurance rates,” kanetix co-founder Gregory Ellis said in a press release. “The results of the kanetix study prove why shopping around is so important; consumers can make sure they’re getting the coverage they need without paying more than they should by comparing quotes every year.”
Ellis added that the kanetix survey shows the value of shopping around: the study shows auto insurance premiums can vary by over Cdn$900 for the same coverage.
Using Ontario as an example, kanetix looked at over 8,000 recent online auto insurance quotes provided to visitors with no previous tickets, accidents or claims. Each of these visitors was quoted a premium from 10 Canadian insurance providers.
The lowest and highest premium from each visitor’s quote was then recorded and the average difference in premium was calculated. The results suggested that premiums differed on average by more than Cdn$900.
“The Number 1 reason most consumers don’t shop around for their insurance is because they believe the price they pay with their current insurance company is the same price they would pay anywhere else,” kanetix co-founder Gregory Ellis said in the release. “But the fact is prices can vary greatly and only shopping around will ensure you are paying the lowest price.”