First, the numbers.
While the study surveyed a cross section of ages, genders and residential areas both inside and outside the GTA, several common key findings emerged:
- 71% of respondents said their driving habits have changed as a result of COVID-19.
- 78% of respondents predict they would be driving less in 2020 (less than 10,000 kms annually).
- 31% of respondents indicated their household finances have worsened.
- 43% of respondents said auto insurance would be the number one place they wanted to save (vs home/tenant insurance, groceries, internet/phone and mortgage payments/rent).
- 54% of respondents are looking for ways to reduce their auto insurance costs.
- 74% of respondents cited their most preferred action to lower their auto insurance costs would be to review their policy with an agent/broker to ensure they are not paying more than they need to get the correct coverage.
- Only 7% of respondents have already made adjustments to their auto insurance as a result of COVID-19, while many more are concerned about costs.
Survey says: Members want these three things most from their auto insurance.
Here’s how CAA can help deliver them.
1. Financial relief: CAA Insurance1 is the only provider offering a 10% rate reduction and a $100 relief benefit.
CAA was the first company to introduce a 10% rate reduction on auto and home insurance to both existing and new policyholders. This was quickly followed up with a $100 Auto Insurance Relief Benefit to be provided on all active auto policies in effect before May 1, 2020. These cost savings are key, since the survey revealed that even Members who weren’t experiencing financial stress mentioned wanting to reduce auto insurance costs. As of posting date, CAA Insurance is the only provider to offer these two types of financial relief for auto insurance.
2. Policy reviews: CAA’s complimentary reviews ensure coverage and costs meet current needs.
Reviewing their current policy with a licensed Insurance agent was survey respondents’ most preferred first step in lowering their auto insurance rate. CAA licensed Insurance Agents provide these to all drivers - regardless of who they are currently insured with, and whether the policyholder is a CAA Member or not. These no-obligation reviews help show policyholders what is currently included in their policy, what features they may be missing and ways they might be able to adjust their coverage to help them save.
CAA Insurance Company has compiled this handy checklist of 10 key questions to ask your insurance company if you are looking to save money on your auto insurance premium.
3. Lower cost insurance options: CAA MyPace® pay-as-you-go plan.
CAA MyPace is Canada’s only pay-as-you-go insurance payment plan. This one-of-a-kind payment option lets you take control of your car insurance costs by giving you the freedom to pay only for the distance you drive. Insureds simply pay a base rate, and then purchase additional mileage in 1,000 km increments as needed. This is an ideal option for those who drive less than 9,000 kms annually, take transit often but still own a car, work from home, or ride their bike frequently. Another great feature of MyPace is that policyholders can switch to traditional CAA Auto Insurance without fees or penalties, once the need for increased driving returns. On average, pay-as-you-go drivers save 40%- 60% on their auto insurance costs due to their lower mileage.
All of this is to say that CAA licensed Auto Insurance Agents are available to help drivers find ways to adjust coverage and payment plans to reflect their reduced driving habits, due to the pandemic. To take the first step towards lowering your auto insurance rate, call 1-877-468-6222 for a complimentary policy review.
*Source: Survey conducted by CAA South Central Ontario (CAA SCO).