Report: Auto Insurance Rates Rise in Ontario and Alberta, Decline in Atlantic Canada
Average premiums in Ontario and Alberta increased 1.08% and 2.46%, respectively, while rates on the East Coast saw a 0.86% decrease
TORONTO, May 2, 2018 /CNW/ - Today, LowestRates.ca, an online rate comparison site for insurance, mortgages, loans and credit cards, released its Q1 2018 Auto Insurance Price Index, the country's only price index that uses proprietary data to track the average cost of car insurance in Canada on a quarterly basis. For the first time since the index launched in October 2017, this report also includes data from the Atlantic provinces—New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
The report found that the price of auto insurance in Ontario and Alberta has been trending upward this quarter, increasing 1.08% and 2.46%, respectively. In contrast, insurance prices in Atlantic Canada have fallen, decreasing by 0.86%. While insurance prices in Ontario increased during Q1 2018, they are still down 6.1% when compared to this time last year. However, in Alberta, current rates are 6.04% higher than they were at the end of Q1 2017.
This is the first time that Atlantic Canada has been included in the Auto Insurance Price Index report, and thus far only two quarters of data have been collected. As LowestRates.ca continues to service Atlantic Canada, further data will be collected and that will allow a better sense of where prices are trending.
"We created the Auto Insurance Price Index to equip Canadians with the information they need in order to make smarter financial decisions," said Justin Thouin, Co-Founder and CEO of LowestRates.ca. "We've expanded the report this quarter to include Atlantic Canada, allowing drivers on the East Coast to better understand rate changes in their area and how these changes affect them. We plan to continue to expand the index to eventually compare prices and trends across the country."
Auto insurance prices in Alberta have increased from 98 on the index at the end of Q4 2017, to 100 at the end of Q1 2018, while prices in Ontario have gone from an index score of 99 to 100, and prices in Atlantic Canada have gone from a score of 101 to 100. The index works by looking at the lowest auto insurance quotes available on LowestRates.ca each quarter and comparing those rates to the hundreds of thousands of quotes processed by the website in the past. A benchmark quarter, in this case Q1 2018, is used to create a baseline (a reading of 100) for the index. Each point on the index above or below 100 represents a roughly 1% change in prices. For instance, a 105 index reading would mean the price has increased by 5% in Q1 2018.
This index also shows the value of comparing auto insurance. While the average quoted price on LowestRates.ca rose 1.08% in the first quarter, that was less than the amount insurers were approved to raise rates. The Financial Services Commission of Ontario, which regulates auto insurance in the province, approved insurance providers for an average 2.23% rate increase in Q1.
Breakdown by sex:
Ontario
- Men are paying 6.65% less than in Q1 2017
- Women are paying 4.75% less than in Q1 2017
Alberta
- Men are paying 6.67% more than in Q1 2017
- Women are paying 4.99% more than in Q1 2017
Atlantic Canada
- Men are paying 0.88% less than in Q4 2017
- Women are paying 0.28% less than in Q4 2017
The full report can be found here.
Insurance rate increases are directly related to costs incurred by providers. For instance, if the number of claims rise in a given quarter for one insurer, they'll increase their premiums, even if other insurers lower their own prices. There are several trends right now that may contribute to these increases, including a higher number of distracted driving accidents, the rising costs of new vehicle repairs and fraud. 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, Alberta and Atlantic Canada, insuring only one vehicle.
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 directly with financial institutions and providers from all over North America to provide Canadians with a comprehensive list of rates. LowestRates.ca wants to help everyone become more financially literate, with a goal of saving Canadians $1 billion in interest and fees.
SOURCE LowestRates.ca
Press contact: Jamie Gillingham, Eighty-Eight, 1 416 944 2722, [email protected]
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