Despite fewer drivers on the road, Canadian auto insurance rates increase during second quarter of 2020
Despite the fact the pandemic has caused a decline in the number of Canadian drivers on the roads, insurance prices have gone up during the second quarter of 2020.
A recent report from LowestRates.ca found that auto insurance prices rose in Alberta and Atlantic provinces while dropping slightly in Ontario.
Fortunately, according to the report, Canadians can save money on their car insurance by updating their driving information as it changes due to the pandemic.
“Drivers should ensure their insurance policy accurately reflects their auto usage, which might have dropped significantly during the pandemic and could stay that way as working from home becomes more widespread,” Justin Thouin, CEO of LowestRates.ca, said in a news release.
“Drivers can also reconsider the need for comprehensive or collision coverage on older vehicles that might not be worth repairing. But even when insurance rates are rising, shopping for a better deal can pay off," he continued.
Based on the findings, one reason for the increase in premiums has been attributed to more technologically advanced vehicles, which leads to rising claims costs.
Ontario's year-over-year prices dropped 3.7 per cent. However, prices in Ontario did experience a two per cent quarter-over-quarter increase.
Further, rates in Ontario dropped 3.8 per cent for men and 4.2 per cent for women, while rates for drivers between the ages of 18 and 24 dropped by 1.1 per cent, rates for drivers between the ages of 25 and 44 increased by 4.2 per cent, and rates for drivers between the ages of 45 and 79 dropped by four per cent.
Additionally, the pandemic is suspected of driving up Ontario auto insurance rates as many people have abandoned public transit in favour of private transportation.
“Reducing auto insurance rates in Ontario is going to require systemic change, which the government has promised, but which will require time to carry out,” Thouin said.
“Until then, there’s no indication that the Ford government will impose rate cuts or price caps in the same fashion as its predecessor," he added.
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