Which Drivers Choose High Car Insurance Deductibles?

Finding ways to try and save money on auto insurance is almost a national sporting activity in Canada. As drivers, we understand the law requires us to have car insurance. As car owners and individuals, we also know that we need to have cover and cover in case we have an accident.

As a savvy customer aiming to invest wisely and make wise monetary choices, there is always a harmonization action involved when buying auto insurance: coverage versus cost. Choosing the most affordable auto insurance coverage you can find at the expense of having far less coverage may not be the wisest option to acquire. Any concessions to be found? Potentially.

Drivers trying to save money may want to consider opting for a larger reduction in their coverage for a reduced auto insurance premium. There are compromises to doing that, of course, but there’s the challenge of finding the right balance between what you need and what you can afford. If you’re unlucky enough to have to file a car insurance claim, you may view points differently.

COVID-19 Question: How Will Your Driving Practices Change?

After that there is the issue of the COVID-19 pandemic that must be considered. When federal government lockdowns are gradually easing and the culture is tiptoeing toward “back to normal,” how excited are you to use public transportation versus driving to work?

Throughout the lockdown, many Canadians are driving much less and are receiving refunds or discounts on the cost of their cars. As inches return to their pre-coronavirus state, your driving practices may change, giving you the option to learn about your car’s coverage and deductions. This is an important option, especially when deaths from car accidents are on the rise. According to the Ontario Provincial Authority (OPP), fatal accidents rose in 2020 compared to a year ago. The OPP said that driving at high speeds and being distracted was a big part of the cause.

It allowed us to dive deeper into how drivers in Ontario and Alberta of all ages opt for deductions for their car packages. Our information is based on those who shopped for prices through InsuranceHotline.com from January 2017 to December 2019. We looked at drivers who were claim-free as well as those who had made at least one claim.

What Deductibles Do Ontario Drivers Choose?

  • It doesn’t matter whether they have filed a claim or otherwise, most Ontario drivers (55% to 60%) have a tendency to opt for standard coverage from year to year.
  • A larger percentage of drivers with at least one claim are more likely to opt for enhanced or adjusted coverage compared to drivers without a claim.

What Deductibles Do Different Generations Of Ontario Drivers Choose?

  • Whether they have filed a claim or otherwise, various generations of Ontarians have primarily opted for standard coverage from year to year.
  • Drivers across generational splits with at least one claim are more likely to choose upgraded or custom coverage over claim-free drivers.
  • Baby boomers are more likely to choose better coverage than other generations, with Gen Z being the least likely to choose this option. On the other hand, Gen Z is more likely to opt for minimal coverage compared to other generations, with Baby Boomers and Gen X being the least likely to opt for this option.

What Deductibles Do Alberta Drivers Choose?

  • Like drivers in Ontario, Albertans have a tendency to opt for standard coverage regardless of whether they have filed a claim.
  • Slightly larger percentage of drivers with at least one claim selected enhanced coverage compared to claim-free drivers.
Which Drivers Choose High Car Insurance Deductibles?

What Deductibles Do Different Generations Of Alberta Drivers Choose From?

  • It doesn’t matter whether they file an insurance claim or otherwise, most Alberta drivers across all generations have a tendency to opt for standard coverage year after year.
  • Whether they have filed an insurance claim or otherwise, Generation Z is more likely to opt for minimal coverage compared to drivers in various other age brackets.
  • Baby Boomers, Generation X, and Older Generation Y drivers in Alberta with at least one claim are more likely to opt for special coverage.

Car Insurance Deductibles: How Should You Decide?

When choosing your automatic plan reduction, there are a few points to keep in mind before deciding:

  • Can you skip getting collision coverage? Think carefully, because this kind of coverage will cost you your vehicle if you have an accident with another car, street lamp, or other fixed item. However, if your vehicle is over ten years old, you may not be eligible to purchase collision protection for it.
  • Do you have the funds to spend on high insurance deductibles? Consider your monthly budget. Are you sure that you can comfortably pay the $1,000 deductible from insurance after filing an insurance claim if needed?
  • Personalize your deductible. Is the deductible insurance deduction for broad coverage best for you because it tends to be optional coverage that’s affordable enough to include in your plan?
  • How likely are you to make an insurance claim? You may be a careful driver with an excellent record, but that doesn’t mean you can stand to stay in a car crash. Consider how much you have, where, when – especially after the COVID-19 lockdown is over and your driving practices have changed.

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