Many Canadians believe the rate they get from their current insurance company is the same rate they would get anywhere else. This is one of the reasons people do not shop around for their auto insurance coverage. It is also one of the reasons many people are paying more for their insurance coverage than they need to. The fact is, rates can vary greatly by company and only shopping around will ensure you are getting the best rate going.
Why do auto insurance rates vary?
Auto insurance rates are set to cover the cost of future accidents and claims, and the administrative costs associated with each. Part of the process in determining a person's auto insurance rate involves reviewing each individual's driving experience, infractions (if any), place of residence, the kind of vehicle being driven and available industry data. This review is highly unique to each insurer and results in a wide range in rates. No two companies are alike.
Dollars and cents
In June, 2010, we compared quotes online for a 35 year-old "clean" driver, driving a 2009 Toyota Corolla in Ontario with 15 years of driving experience. For comparison purposes, we added to this driver's history, tickets and accidents to see how the quotes changed.
The movement of companies up and down the Kanetix Quote Comparison Page shows how different insurers target different types of drivers.
(*The company at the top of the list offered the lowest quote.
| |||||||
| Clean | Range | 1 minor ticket | Range | 2 minor tickets | Range | 1 at-fault accident | Range |
| Company A | $2594 difference between the lowest and highest quote. | Company A | $2475 difference between the lowest and highest quote. | Company A | $2545 difference between the lowest and highest quote. | Company C | $4360 difference between the lowest and highest quote. |
| Company B | Company B | Company B | Company B | ||||
| Company C | Company C | Company C | Company A | ||||
| Company D | Company E | Company E | Company E | ||||
| Company E | Company D | Company D | Company D | ||||
| Company F | Company G | Company F | Company E | ||||
| Company G | Company F | Company G | Company G | ||||
| Company H | Company H | Company H | Company I | ||||
| Company I | Company I | Company I | Company H | ||||
What does this mean to you?
You can see how different insurers offer different rates for the same driver, and how the range in auto insurance quotes is significant. If your driving record has changed, for any reason, you could be saving significant money by shopping around.
Shop to compare quotes and save
The car insurance rate you end up paying is often reflective of how much time you have to spend comparing and shopping for the best rates. Of course, it's easy to review your renewal notice from your current insurer and accept that it is the best rate that company can offer. But is it the best rate available to you?
Kanetix offers you a better and quicker way to shop for insurance; the service is free and quotes are displayed in an easy-to-read and compare chart format. With just one visit to Kanetix.ca, you can get online quotes from some of Canada's top insurers - it's that simple.
Shop and compare insurance quotes at Kanetix and see if you could be saving money on your auto insurance premiums.
* The information contained within this article is subject to change. Always speak with your current insurance supplier, or a licensed insurance representative, to answer your specific questions. The information collected and compiled here is intended to simply act as a guide.
