- 23% of Ontario drivers shopped their auto insurance rate for a better price last year.
- More people switched after shopping around for car insurance compared to getting a new phone or improved internet, demonstrating value in assessing your insurance options
- Of those who did shop around, 39% switched car insurance providers, and 34% switched their home insurance.
They say money talks, but does it? Ontario auto insurance rates are some of the highest in the country, yet a new survey found that only 23% of Ontario drivers compared auto insurance quotes last year, while 77% did not. All of this during a pandemic year to boot when lockdowns forced many Canadians to take stock and tighten their budgets.
All of this is not to say that people were unwilling to better their budgets by shopping around for other household staples. According to the survey, 31% shopped around for a new cellphone and 32% of their internet. What gives?
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Fewer shopped for car insurance but more switched after comparing quotes
No one would say that shopping around for auto or home insurance is as sexy as getting a new cellphone or -- thanks to the pandemic -- having better, faster internet. It’s not. However, comparing auto insurance does appear to produce better results. More survey respondents said they switched after shopping around for car insurance compared to getting a new phone or improved internet, demonstrating value in assessing your insurance options.
|Household Staple||% Who Shopped Around||% Who Switched Afterwards|
How much value is there (really) to be had in shopping around for insurance?
The value to be realized in switching insurers can be considerable. The survey found:
- Of the 39% of people who switched car insurance providers after shopping around, more than one in three of them (36%) ended up saving $60 or more on their monthly premium.
- Of the 34% of people who switched home insurance providers, one quarter (25%) ended up saving $60 or more on their monthly premium.
It’s important to note that these are monthly savings, not yearly savings; and saving $60 bucks a month adds up quickly. Over the course of a year, you’re looking at $720.
Yet, the survey found, the idea to shop around didn’t occur to 6% of respondents, and 15% said it was too much hassle (it’s not, give it a try). A further 9% said they didn’t bother because of their loyalty discount. On this latter point, how much do you think a car insurance loyalty discount is worth? It’s probably not as much as you think. If your insurer offers a loyalty discount, it likely saves you in the neighbourhood of 5%. That’s it. Don’t let the idea of being loyal to an insurance company cost you money in the long run.
Let’s talk about the money you’re spending on Ontario auto insurance
A year is a long time to overpay for your auto insurance. Compare the rate your current insurer offers you to the best rates available through InsuranceHotline.com. In a single search, you can compare your lowest rates so you can be confident in what you're paying. You've got nothing to lose, just money to save, and it takes just a few minutes to find out who will give you the best deal on car insurance or home insurance for the year ahead.