Revealed – Canadians’ misconceptions about auto insurance
Revealed – Canadians’ misconceptions about auto insurance | Insurance Business Canada
Motor & Fleet
Revealed – Canadians’ misconceptions about auto insurance
Some are still unclear on what factors impact their coverage and rates
Motor & Fleet
By
Mika Pangilinan
While the majority of Canadians are confident that their existing auto insurance is the best fit for them, there are some who are still unclear on what factors impact coverage and rates.
That was according to a survey commissioned by PC Insurance, which sought to identify some of the most commonly held misconceptions about auto insurance in Canada.
Based on a survey of 1,500 Canadians, the study found that 22% of respondents believe their insurance rates stay the same when they move, while a quarter (25%) believe it costs more to insure a car as they grow older.
The survey also identified that 32% Canadians think parking tickets impact insurance rates and 16% believe they have to wait until renewal to change or cancel their current plan.
Moreover, nearly half of Canadians (46%) believe credit scores have no impact on their insurance rate, even though this is determined by their province of residence.
“We know there are significant misconceptions about auto insurance and the survey data confirmed this,” said Ciara Beauchemin, senior vice president of PC Insurance. “Canadians are unclear about what goes into determining their rates and policies.”
Attitudes toward auto insurance also revealed
Aside from identifying some of the largest misconceptions about auto insurance in Canada, the survey found that Canadians aged 18 to 34 are over 30% more likely to change their policy versus older Canadians in the 35-54 bracket.
The survey also revealed the policy features that Canadians consider to be the most important. Safe driving discounts came out at the top of the list with 50% of respondents identifying it as the most crucial feature, followed by collision coverage (42%), liability coverage (38%), the ability to bundle with home insurance (38%), and multi-car discounts (25%).
Additionally, most Canadians (86%) said they felt confident that their current insurance policy is best suited for them, while one in three (35%) said they rely on family, friends, and word of mouth as a trusted source of information on insurance over brokers (32%) and consumer reports (17%).
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