Shop Insurance Canada: Ontario Drivers Pay More than UK Counterparts Despite 19% Increase
September 07, 2016 (PRLEAP.COM) Business NewsSeptember 7, 2016 - A recent survey in the United Kingdom has shown how consumers in the country are now paying 19% more on average for their car insurance premiums. However, that massive hike still places the UK below Ontario in terms of the average cost of insuring a vehicle. Shop Insurance Canada says this is startling evidence that the Ontarian government still has a lot of work to do.
While Ontarian motorists are used to paying excessively high auto insurance rates, they have at least been enjoying premiums slowly falling. However, in the United Kingdom, drivers are facing the prospect of paying 19% more for their coverage than they were last year.
Comparison site, Confused.com, highlights the fact that this is the steepest rise since the 25% increase through the second quarter of 2011. The new five-year high means the average motorist in the UK is now paying £715, compared to £600 just a year ago. Because many will be paying more for their coverage, Confused speculates that the hike could leave to drivers quitting the roads.
So, how does the average UK price of £715 compare to the average price in Ontario, Canada's most expensive car insurance market? Well, in the United Kingdom the average price is still well below that of Ontarians. £715 is about $1235 CAD, whereas the average auto premium in Ontario is over $1500.
"Insurance price increases of this magnitude, coupled with rising petrol prices and hikes in insurance premium tax, could well signal the end of the road for cheaper driving for motorists," the press release said.
Ironically, young drivers have been the least impacted by the rising premiums. The 17-24 age group consistently pays the highest auto insurance rates, but the youngest (17-year olds) have been the least affected by rising premiums. Their 8% increase is well below the national average, even if they have not been untouched. Young drivers of this age still pay on average over £2000 ($3455 CAD).
At the other end of the age spectrum, Confused.com points out that older drivers have been hit hardest. Those over 61 have seen their annual premium increase by 24%. However, this market typically pays less to begin with, so the average comprehensive coverage for those over 61-years old now sits at £418.
Shop Insurance Canada says the disparity shows the Ontarian government has much work to do:
"Even after a near 20% average increase, the UK remains cheaper than Ontario for car insurance. The government has done a lot by reducing auto insurance premiums by 10% in the province, but still Ontario remains excessively high. It is worth noting that the UK is a similar market model to Ontario, the differences between the two should not be as drastic as the average price suggests."
About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online insurance quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.
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