What’s New: In Brief (October 13, 2009)

There was a 2.8% decrease in the average of the lowest rates quoted for online auto insurance in 2009 Q3, compared to 2008 Q3, according to a Kanetix study.
The decrease appears to be the result of changes in consumer behaviour and demographics, not cheaper car insurance rates, according to the online marketplace’s Ontario quarterly car insurance premium study.
The percentage of quotes for drivers under the age of 25 dropped 4% from 36% last year to 32% this year. This could be a factor of a higher youth unemployment rate this summer.
Generally, insurance rates are higher for younger, less experienced drivers. But due in part to fewer quotes in this age bracket, the overall lowest average rate has decreased, Kanetix says.
As drivers keep cars longer, coverages such as comprehensive and collision are dropped, which means a reduction in premiums.
Furthermore, many Ontario drivers took advantage of the multi-line discount, saving roughly 5%, Kanetix says.

Dan Pye has been appointed to the position of market development manager in the GTA and Eastern Ontario for Carstar Automotive Canada Inc.
In his new role, which he assumed on Sept. 28, Pye is to help to build strong relationships with Carstar’s franchisees, as well as with insurance and fleet partners, to increase Carstar’s market share and build its brand.