Auto Insurance Rates Are Rising

Auto insurance rates are on the rise according to Kanetix, the online insurance quote comparison service.  Kanetix just released their quarterly year-over-year auto insurance rates study results for Ontario, Quebec and Alberta in Q2 2011.

• Ontario auto insurance rates increased 6.4 per cent in Q2 2011, compared to Q2 2010.  Rates have been stabilizing since last year’s auto insurance reforms with Q4 2010 and Q1 2011 indicating a 9.5 per cent and 6.7 per cent increase respectively.  The year-over-year difference in rate increases is dropping.
• Drivers in Quebec and Alberta were able to take advantage of auto insurance rates that were relatively stable in Q2.  Modest increases were observed in both provinces; 0.2 per cent in Quebec and 1.4 per cent in Alberta.

Here are some key findings from the study for consumers looking to save on auto insurance:

• More than 50 per cent of consumers did not take advantage of the multi-line discount that is available to them
• More than 50 per cent did not opt in to the Roadside Assistance discount
• Approximately 20 per cent did not take advantage of the winter tire discount that many insurance companies offer

Although the study indicates that auto insurance rates are rising, consumers are missing out on some key discounts which could help them lower their auto insurance rates.  If consumers are feeling strapped for cash because of high gas prices and auto insurance rates, they may be able to relieve some of the strain on their wallets by reviewing their auto insurance policy.

The study also determined that more customers could save money on their premiums by opting for a higher deductible.  Policyholders who switch from a $500 deductible to a $1,000 deductible could save between 5 and 10 per cent on their insurance premiums.

“Although rates are higher compared to last year, consumers can still find ways to lower their auto insurance rates if they ensure they are taking advantage of available discounts and take the time to understand other cost-saving options that are available.  At Kanetix, we feel that consumers can take advantage of more discounts than they do today – discounts which could help reduce their rates,” says George Small, Co-founder, Kanetix Ltd.

Saving On Auto Insurance Rates

When I reviewed my personal rate of inflation I noted that we managed to save 25% on our auto insurance rates by calling our insurance provider and updating our policy to reflect some of these discounts.  Since then our auto insurance premiums have increased by about 2.5%, which is in-line with what the Kanetix study suggests.

As a consumer, one of the best money saving tips is to shop around for discounts.  Don’t be complacent with your current provider and simply accept their yearly increases.  Review your existing policy, adjust your policy deductibles, and use an insurance quote comparison site like Kanetix to ensure you’re getting the best auto insurance rates.

Get a quote from Kanetix today and compare your auto insurance rates.