Canadians could save $14,000 by comparing car insurance rates from their early 40s onwards, according to a new report from LowestRates.ca

Reaching life milestones can contribute to big savings TORONTO, July 29, 2020 /CNW/ – Car insurance rates tend to decline as…

Reaching life milestones can contribute to big savings

TORONTO, July 29, 2020 /CNW/ – Car insurance rates tend to decline as you get older, but some insurance companies give you a much better rate as you age than others. A new report from LowestRates.ca has determined the best age at which Canadian drivers should begin comparing auto insurance policies as they get older. «Most car insurers start rating you as a mature driver at age 50, and around that age is when people often make lifestyle changes that can contribute to a reduction in insurance rates,» said Justin Thouin, Co-Founder and CEO of LowestRates.ca. «If you’ve dropped your adult children as secondary drivers, for example, or you retire and downsize, it’s the perfect time to shop around for car insurance.»

Data from the new LowestRates.ca report confirms that Canadians could save a lot of money annually by switching  providers as they approach their senior years, and demonstrates how premiums decrease, on average, in Ontario, Alberta, and Quebec, starting at age 40. In each province, three-to-four different car insurance companies were compared and their prices charted to see how pricing evolved for consumers over time.

«Generally, your car insurance is most expensive in your teens and in your twenties. After that, your rates begin to gradually decline,» said Thouin. «When we examined the rates from several different car insurance companies in Alberta, Ontario and Quebec, it became clear that some companies offer much lower premiums to older drivers. Those who don’t compare auto insurance rates are losing out on thousands or even tens of thousands of dollars worth of savings as they age.»

Some key findings from the report:

  • The report found that a person’s early 40s is when prices start diverging significantly among different car insurance companies. Comparing during this time period really pays off in the long-run.
  • The report also found that over 26 years, beginning at age 49, choosing the cheapest car insurance company versus the most expensive one could save you $14,700
  • Age 50 is when many auto insurance companies deem drivers as «mature», leading to more discounts.
  • Comparing rates pays off big time in the long-run.

The report also shows how much you can save by switching companies. Below, we show the range of potential money saved, with the savings representing switching from the most expensive company to the cheaper companies.

For example, if company D was the most expensive, but company C was cheaper and company B was the cheapest, the ranges would represent savings of switching from company D to company C or company B.

In Ontario:

Annual savings range

Total savings range (over 26 years)

$74 – $586

$1,850 – $14,650

In Alberta:

Annual savings range

Total savings range  (over 26 years)

$52 – $588

$1,300 – $14,700

In Quebec:

Annual savings range

Total savings range  (over 26 years)

$150 – $354

$3,750 – $8,850

«As a rule, I would advise that Canadians compare insurance providers every time their policy is up for renewal,» said Thouin. «However, as drivers grow older, they may become more complacent with their insurance, especially as insurance companies start offering loyalty discounts. However, clearly, our data shows that comparing can save you a lot of money.»

For the full report, visit: https://www.lowestrates.ca/blog/auto/auto-insurance-aging-report-2020

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 consumers directly with financial institutions and providers from all over North America to offer Canadians a comprehensive list of rates. LowestRates.ca’s mission is to help Canadians become more financially literate, with the near-term goal of saving them $1 billion in interest and fees.

SOURCE LowestRates.ca