Number of drivers shopping for car insurance declines during pandemic: report
In order to help prevent the spread of COVID-19, the Province has mandated many businesses to close and instructed people to stay at home as much as possible.
As a result, many people have been dealing with a significant change to their regular routine and have been driving less frequently.
The fact that many people are driving less often than they were before the pandemic has also had an impact on those looking for car insurance.
"As people stopped commuting to work, and used their vehicles less once lockdown measures were implemented, there was a significant decrease in driving," Justin Thouin, Co-Founder and CEO of LowestRates.ca., said in a news release.
"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," Thouin continued.
According to a report from LowestRates.ca, drivers searching for low-mileage insurance quotes increased by 34.21 per cent in May compared to the previous year.
"Typically, low-mileage drivers can benefit from lower insurance rates, because premiums are based on risk," Thouin said. "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."
Further, the pandemic has also had an impact on the number of young drivers searching for car insurance.
According to the findings, drivers 25-years-old and younger seeking insurance quotes from Lowest Rates declined by 37.06 per cent in March, 42.51 per cent in April, and 7.58 per cent in May compared to 2019.
Thouin suggests this could be due to the fact that many Provincial Governments suspended driving tests during these months, which means fewer drivers have been able to enter the markets.
Moreover, LowestRates.ca saw a year-over-year decrease in the number of drivers with no previous insurance coverage seeking quotes during March and April, which is likely attributed to the fact car dealerships were closed during these months.
"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."
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