The cost of premiums in Ontario fell an average of 11% in Q3 2017 versus the prior year; in Alberta, they're up 3.9%
TORONTO, Oct. 30, 2017 /CNW/ - LowestRates.ca today launched an Auto Insurance Price Index that tracks the average cost of consumer auto insurance in Canada on a quarterly basis. The index uses proprietary data from the hundreds of thousands of Canadians who get quotes from LowestRates.ca, where consumers come to compare rates and make the best possible decision on their car insurance.
"Historically, it's been very difficult for Canadians to find easy to understand information about whether car insurance rates are going up or down," said Justin Thouin, Co-Founder and CEO of LowestRates.ca. "So we decided to create our Auto Insurance Price Index to make it easy for consumers to see whether, on average, car insurance premiums are moving up or down."
Insurance companies determine rates based on their costs — if claims rise in a given quarter, premiums can go up, even if some insurers lower their prices. The LowestRates.ca Auto Insurance Price Index tracks the percentage change in the average quote requested for car insurance by individual drivers residing in Ontario and Alberta, insuring only one vehicle.
The index opening value was set to 100 in Q2, 2017. Data from the index will be published on the website monthly, while a report will be produced quarterly providing insights into auto insurance price moves.
"We're excited to be able to provide a unique industry benchmark that illustrates market movement in an easy-to-understand way," said Thouin.
- The average premium in Ontario is $1,458. In comparison, the average for all other provinces and territories in Canada is $930. That makes Ontario's average price 44% higher than the rest of Canada.
- Car insurance rates have been trending lower over the past two quarters, with premiums dropping 5.8% in the third quarter compared with the second quarter of 2017, and dropping 11% year-over-year.
- The average premium in Alberta is $1,179. That makes Alberta, on average, 23.6% more expensive for car insurance than the Canadian average.
- In Alberta, auto insurance rates have risen in the most recent quarter — and are up 3.9% compared to last year.
- In the third quarter, the average Albertan paid 1.7% more for car insurance than they did in the second quarter of 2017.
"Our mission is to provide Canadians with the lowest rates possible for insurance, credit cards and mortgages," said Thouin. "We want our customers to have peace of mind when getting a quote through LowestRates.ca, and this new index will provide them with an additional level of confidence. It's really important you compare your car insurance every year as premiums change all the time."
The full report can be found at: https://www.lowestrates.ca/reports/auto-insurance-price-index-2017.pdf
LowestRates.ca is changing the way that Canadians think about personal finance. It's a one-stop shop for Canadians to compare offers on personal finance products quickly and easily from North America's leading financial brands, including CAA, PC Insurance and Scotiabank. LowestRates.ca has helped millions of Canadians explore their financial options and continues to work toward our goal of saving Canadians $1 billion in fees and interest.
For further information: Dan Rubin | 416.568.3313 | [email protected]