Finding the best insurance rates can be a time consuming process, so it’s no surprise that most people can’t be bothered to shop around and find the best price for the insurance coverage they need. That’s where Kanetix comes in.
Canadian insurance consumers have been using Kanetix as a one-stop shop to access instant quotes from competing insurers for over a decade. On average, 40% of consumers who found savings on their car insurance using Kanetix, found savings of more than $600 per year.
Last week I had the pleasure of speaking with George Small, co-founder of Kanetix, about how consumers can save on auto insurance.
Tell us about the history of Kanetix
We were founded back in July 1999, basically quoting one company in auto insurance, and then expanding to multiple companies in Ontario. We expanded geographically to the other Provinces in Canada that didn’t offer Government auto insurance.
We then added home insurance, life insurance and travel insurance and have just recently added products such as mortgage rates and credit card comparisons to continue to make shopping easier for consumers.
How can the average consumer reduce the cost of their car insurance premiums?
At the fundamental level the first thing they need to do is shop. We run into a lot of people who aren’t happy with their insurance rates, but surprisingly they aren’t doing anything about it.
The easiest way to shop now, rather than calling a lot of companies and explaining the same thing to them, is to do it online and Kanetix is a great way to do it.
Customers enter their information once on our website and depending on their profile and geographic location we can generate up to 10-15 competing quotes.
So how do consumers know they are getting all the available discounts on Kanetix?
The easiest way is to make sure they answer every discount question (there are a lot of them). The more accurate you are with your response the better the results will be when you look at the comparison quotes.
It’s important that consumers spend time answering the other questions such as, are you willing to move your property insurance to take advantage of a multi-line discount. Depending on the insurance carrier, consumers can save 5-10% on their auto insurance rates just by bundling their home and auto policies, and surprisingly a lot of people aren’t doing this.
What is stopping insurance carriers from quoting a higher rate on Kanetix vs. their own site?
The insurance business is regulated and so companies file their rates and must show the same rate to the same consumer profile, which means there is consistency between our website and the individual carriers website.
They can’t generate a better deal for one consumer (all things being equal) than another because of these filings. The discounts are filed and known by the regulators and that’s what they are allowed to apply.
How much variation is there between insurers on premiums for the same client?
Not every carrier has the identical target segments, so when they file rates they may be looking for a certain grouping of people that may be different from another carrier. Rates can vary quite a bit, well into the hundreds of dollars.
One insurance carrier may look at the 18-24 year-old male segment of drivers and say, we don’t think those drivers are as risky as other insurance providers so we will file better rates for that target market. At the other end of the spectrum, a company like Grey Power will target the 50+ age category and file better rates for that grouping of people.
How much does it cost to use Kanetix?
Kanetix is absolutely free to consumers!
What are the cheapest cars to insure, and what are the most expensive?
It definitely varies, but the most expensive cars to insure are typically sporty two-door models. A specific example of an expensive vehicle to insure is the Toyota Highlander, a 4-door, 4-wheel drive vehicle that has a history of higher claims due to frequent theft.
Vehicles that have a history of frequent claims, or a history of being stolen more often will definitely cost more to insure. Also, cars that have a lot of modifications done to them will drive up the insurance rates.
Here is a link to the top 10 most expensive cars to insure, obtained from the most recent Insurance Bureau of Canada publication.
On the other hand, vehicles with less history of filing claims will likely have lower insurance rates. For car brands, Volvo’s are typically less expensive to insure. One of the cheaper vehicle models to insure is the Pontiac Montana SV6 due to it’s safety record.
Here is a link to the top 10 least expensive cars to insure, obtained from the most recent Insurance Bureau of Canada publication.
Is there anything else you want consumers to know about Kanetix and about getting cheaper insurance rates?
We think that consumers should shop. They might not be aware of all of the discounts available to them, like the multi-line discount, the winter snow tire discount, a group discount if you happen to work for a preferred employer group, or even the fact that there is flexibility in modifying their deductibles.
Instead of waiting until your renewal date comes up to check for insurance rates, keep in mind that there are other opportunities to review your policy throughout the year.
If you’re getting married or purchasing a new car, or adding a teenager to your policy, or moving, there are opportunities to examine your policy and check for discounts. Take advantage of these money saving tips to make sure you are always getting the best rates.
Readers: Do you shop around regularly to look for the best insurance rates?