Canada slow to adopt online buying for auto insurance
Allstate Canada launches new quick quote online tool in Ontario
TORONTO — October 4, 2012 — As Allstate Insurance Company of Canada prepared to launch its online auto insurance quote generator in Ontario this week, experts at the insurer reviewed Canadians’ habits when it came to buying auto insurance online. What they found was that while Canadians may be leaders in online shopping, and while more than half (51%) have bought goods or services online, Pollara’s 2012 InsurPoll shows that only two per cent bought their current auto insurance policy online. In contrast, according to a comScore Auto Insurance Report, 17 per cent of American consumers have purchased car insurance online. So what makes buying insurance different?
“Insurance is a big purchase, and Canadian insurance companies have yet to push their online selling features to customers to the degree companies have in the United States,” says Amy Woods, Director, Online Experience at Allstate Canada. “Most Canadians know they may need to talk to an insurance agent or broker about their specific needs at some stage in the process, so they’re reluctant to complete their purchase online. However, we do know Canadians like to research insurance online before making that call.”
Given this, Allstate developed its online quote tool with the consumer in mind. With just six key questions Canadians can get a price range for their auto insurance. If they like what they see they can answer a few more questions to get a more personalized quote, or at any time decide to move on to a chat with an agent in Allstate’s contact centre to ask questions and make sure they have the right coverage based on their needs and driving habits.
Allstate Canada first piloted this online quoting tool in Quebec in November 2011 and expanded it to Alberta in June 2012. The insurer has seen online quote completion rates (consumers who answer all the questions and get a final estimate) increase to almost 70 per cent in those two provinces. “On the old version of our auto quote tool, only one in five consumers who started a quote completed the entire questionnaire. We saw this as a huge opportunity to improve the experience, so we started to develop a way to give customers what they wanted, the quote, as quickly as possible,” says Woods. “Auto insurance quote generators will typically ask about 40 questions before you can get any estimate, where we’ve narrowed it down to either six questions for a range of quotes or 16 to provide you with a personalized estimate.”
Research from Pollara’s 2012 InsurPoll shows that 15 per cent of Canadians, excluding those living in provinces with government operated car insurance, have obtained an online auto insurance quote in the past year. Customers typically have two options when shopping for insurance: an aggregator site that provides a range of quotes from different companies (and it’s then up to the consumer to reach out to the insurer) or an insurer’s online quote tool like Allstate Canada’s. To get an online auto insurance estimate, go to www.allstate.ca, and enter your postal code in the ‘Start a Quote’ section.
What goes into determining car insurance rates?
Each insurance provider calculates premiums differently, but typically policies account for these five factors:
- Age of driver;
- Where the driver lives;
- The model of vehicle, though not the colour;
- How far (in kilometres) the car is driven daily;
- Driving record and the number of additional drivers using the car.
What the policy covers is another important cost factor. A policy with more types of coverage will have higher premiums than one with just the minimum required by the province.
Most auto insurance companies, like Allstate Canada, offer reduced insurance rates when insuring multiple vehicles on the same policy or if there are other policies with the same insurance provider such as home and tenant insurance. Allstate Canada offers more tips on how to save on car insurance here. For more information about common auto insurance questions, please visit, www.allstate.ca/En/Products/Auto/FAQs.
About Pollara’s InsurPoll 2012 study
Pollara’s InsurPoll survey consists of 3,479 online interviews withCanada’s home and car insurance consumers, conducted in March 2012. A probability sample of this size would yield results accurate to +/-1.7%, 19 times out of 20.
To learn more about Allstate’s online insurance tool or to speak with Amy Woods, Director, Online Experience at Allstate Canada, please contact:
Andrea Smith
Thornley Fallis Communications
T: 416.515.7517 x 321
smith@thornleyfallis.ca
About Allstate Insurance Company of Canada
Allstate Insurance Company of Canadais one of Canada’s leading producers and distributors of home and auto insurance products. "The Good Hands Network®" enables consumers to contact Allstate Canadathrough one of 83 community-based Agencies, directly online at www.allstate.ca and through the Customer Contact Centre at 1-800-Allstate. Allstate Canada is committed to making a positive difference in the communities in which it operates. This year, Allstate Canada celebrates 25 years of partnership with MADD Canada in the effort to protect us all from impaired driving. In 2010, Allstate Canada, in partnership with the National Hockey League Players’ Association (NHLPA), created the Allstate All-Canadians program, a mentorship program designed to create future community leaders through the sport of hockey. Learn more about this program at www.allcanadians.com. To learn more about Allstate Canada, visit www.allstate.ca.
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