Canadian car insurance shopping habits changed significantly due to COVID-19, according to a new report from LowestRates.ca

Fewer quotes for new cars, surge in low-mileage drivers and a decline in the number of young drivers as road test centres and dealerships closed

TORONTO, June 10, 2020 /CNW/ - When provincial governments across Canada mandated the closures of restaurants, schools, daycares, and non-essential businesses due to the COVID-19 pandemic in mid-March of this year, many people nationwide stopped driving their cars. This change in people's normal routines changed the way Canadians shopped for car insurance, according to a new report from LowestRates.ca.

"As people stopped commuting to work, and used their vehicles less once lockdown measures were implemented, there was a significant decrease in driving," said Justin Thouin, Co-Founder and CEO of LowestRates.ca. "We saw a big increase in low-mileage drivers (those who drive fewer than 5,000 kilometres a year) shopping for auto insurance on our site in April and May."

Data from the report revealed that the number of low-mileage drivers quoting on LowestRates.ca shot up 34.21% in May versus the prior year. "Typically, low-mileage drivers can benefit from lower insurance rates, because premiums are based on risk," says Thouin. "From an insurance company's perspective, the less you drive your car, the lower the risk of you getting into an accident and needing to make a claim."

The report also showed that COVID-19 lockdown measures led to a sharp drop in the number of young drivers searching for car insurance. According to the data, the number of young drivers (those 25 and under) quoting on LowestRates.ca declined by 37.06% in March, by 42.51% in April and by 7.58% in May year-over-year. "New drivers may have been hesitant or not allowed to do their driving examination tests across Canada during these months. Even now, except for in Saskatchewan, you can't take a driving test. It's possible that physical distancing rules meant that fewer new drivers were able to enter the market for insurance."

LowestRates.ca also saw less traffic year-over-year from drivers with no prior insurance history during March and April (by 34.13 and 50.24%, respectively). This may have been impacted by the fact that car dealerships were closed during that time. LowestRates.ca saw traffic from drivers with no prior insurance history increase by 45.32% from April to May, coinciding with the time when dealerships began reopening, which indicates that new drivers were buying cars once again and searching for insurance policies for them.

As car sales across Canada plummeted while dealerships closed during the early stages of the COVID-19 lockdown, data from the report show that the number of people seeking car insurance quotes for new vehicles (2019-2021 models) dropped by 80.08% in April versus the year before. There was an increase, however, in May, with month-over-month figures showing 51.07% more quotes for newer vehicles during the month.

"As provincial governments continue to gradually loosen lockdown restrictions, I expect to see a continued increase in people seeking auto insurance quotes from our site," said Thouin. "People are anxious to get back on the road and get back to their normal lives. And I think more than ever, people are rightly concerned with their family's safety, and having a good car insurance policy can help put your mind at ease as we transition into this new phase of the pandemic."

For the full report, visit: https://www.lowestrates.ca/blog/auto/how-covid-19-changed-canadians-car-insurance-shopping-habits.

About LowestRates.ca

LowestRates.ca is an online rate comparison site for insurance, mortgages, loans and credit card rates in Canada. The free, independent service connects consumers directly with financial institutions and providers from all over North America to offer Canadians a comprehensive list of rates. LowestRates.ca's mission is to help Canadians become more financially literate, and has saved them $1 billion in interest and fees to date.

SOURCE LowestRates.ca

For more information or to request an interview with Justin Thouin, please contact: Jenna Illies, PR Strategist, C: 416.877.1973, [email protected]