Canadians are still generally unconcerned about auto insurance and spend on average 2.5 hours choosing their auto policy. According to a new study by LowestRates.ca, customers spend more time choosing paint color for a home, buying furniture, or deciding on a vacation destination.
The survey was called ‘Are Canadians making embarrassing financial decisions?’ and found that Canadians are more concerned about less important financial decisions. Instead of focusing on important matters, most revert to major financial institutions without shopping around. This means they are unlikely to be getting the best deal on auto insurance.
LowestRates admits that getting customers interested in insurance is hard. It is clear consumers are not using comparing websites like Shop Insurance Canada as much as they should. Last year, a study showed that Canadians are not using comparing websites and are instead opting to stick with their current provider.
This is hugely limiting for customers as they only ever see one quote. Insurance companies change their rates often, and companies do not offer a universal premium, even if the policy points are the same.
By using quote comparison sites, customers can sometimes save themselves hundreds of dollars, especially in Ontario where auto insurance is expensive. At the very least, by shopping around, consumers ensure they get the most affordable policy.
The latest survey is similar to a recent study that showed Canadians are not financially prepared. According to a new report from CIBC, nearly half of Canadians are not properly prepared to manage their financial priorities during 2017.
The Toronto-based bank conducted a poll early in December among 1,507 Canadian adults who are Angus Reid Forum panellists.
The results show that 48 per cent of respondents do not plan to reduce spending to help meet financial requirements. Priorities include eliminating debt, maintaining bills, and investments, but nearly half will not reduce current spending to achieve those goals.
28 per cent of those asked said debt repayment was the biggest financial priority this year, with credit cards and other types of credits the chief debt concern amongst a majority. Day-to-day spending is a problem for 26 per cent of respondents, who admit to incurring new debt to keep up with spending that surpasses their monthly income.
Despite these concerns, only 26 per cent will make efforts to reduce spending, create a budget, and maintain a financial plan.
After credit concerns, 16 per cent said they were concerned about bill payment. 11 per cent said that growing investment opportunities is a worry.