Canadians are more cost conscious about insurance nowadays, and you should be, too
Insurance for home and auto takes up a considerable portion of a household’s budget every given month; approximately $225 - 250 for home and auto coverage combined, which on average represents about 5% of an Ontarian’s take-home pay.
Saving 10, 25 or even 40 per cent in this budget category can make a big difference in what else you can fit into a monthly spend; better quality baby formula, a tank of gas, or savings for a rainy day.
According to Fernand Vartanian, Head of Business Development and General Counsel for Onlia, it’s financially prudent to do research and shop around to understand costs and coverage for insurance. And, given that the pandemic forced so many people to be homebound and driving less, the precise coverage one needs may have shifted, offering further opportunities for savings.
The good news: you don’t have to overpay for quality insurance
Doing your homework to compare prices and coverage can save you between $500 - 700 annually.
Plus, if you opt-in to Onlia Sense™, an app that uses telematics to track and reward road users for good behaviour, you can reap the benefits of a good drive score. “The Onlia Sense app puts even more money back into the pockets of Canadians by rewarding safe driving,” says Fernand. “These rewards can tally up to an additional $450 in annual value. First-time customers tend to receive other sign-up perks, too, like accident forgiveness or claims-free history.”
To optimize your insurance savings opportunities like Rebecca and Nate did, compare your options. This can be done directly by you using an aggregator site like LowestRates.ca or Rates.ca. For Rebecca and Nate, they chose the latter and used Google reviews and recommendations from to guide their research.
Note that it can be a bit of challenge to unpack the precise details of coverage when you use an aggregator site. So, dig deep – very deep – into the details of what’s included. In Canada, default coverage is pretty standard and that’s because the regulators make sure that even the baseline policies, which are what you see most presented on aggregator sites, meet all statutory requirements.
Don’t let these myths hold you back from switching to a new insurance provider
Myth 1: I’m not an ideal client and therefore I’m going to get gouged on price
Even if you’ve had trouble in the past getting the insurance you want, that doesn’t mean you can’t get what you need in the future. Every insurance company calculates premiums differently; and it’s not just those with squeaky clean claims history who get the benefits. The right provider for you will want your business because you’re a good fit for them, and they will be able to offer you the most competitive rates. But, going direct means no added fees from a middleman.