Prairie Post (East Edition)

Auto insurance premiums causes usage changes

- Contribute­d

As auto insurance premiums rise, consumers are increasing­ly opting for usage-based insurance, with quotes for UBI up almost 20% YoY, according to RATESDOTCA data. The data show that quotes for UBI have been on the rise since September 2022.

Ontario auto insurance premiums have been steadily increasing since 2022 and are expected to increase by 7-8% in Q2 2023. Some drivers may have already seen the effects of these changes, while others are likely to see a higher premium upon renewing their policy.

“With auto insurance premiums steadily on the rise and inflation impacting consumers across the board, Canadians are beginning to open up to creative cost-saving measures,” says Daniel Ivans, RATESDOTCA insurance expert. “UBI can be a very powerful tool for responsibl­e drivers, but knowing what kind of UBI policy works best for a driver’s personal situation is important in order to make the most of the savings available.”

Usage-based insurance policies offer pay-as-you-go policies, which tie premiums directly to the amount the vehicle is used, and pay-how-you-drive policies, which use onboard tracking technology or an app to monitor driving habits and assess the level of risk posed by the driver.

• Quotes for UBI increased 18.22% YoY and 54.64% MoM in January,

and 36.8% MoM in February;

• UBI is more popular with a younger demographi­c, with nearly 55% of drivers aged 20 to 29 opting for a UBI discount in January;

• In January 40% of drivers aged 30 to 39 opted for a UBI discount;

• In January 30% of drivers aged 60 and older opted for a UBI discount;

• Quotes from male drivers aged 20 to 29 with a UBI discount were up 75% in January and 68% in February, as compared to female drivers, with 65% and 57% in January and February, respective­ly.

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