A recent study has revealed that despite rising premiums and economic pressures, consumer satisfaction with Canada’s auto insurance industry remains strong.
The RATESDOTCA Annual Best Auto Insurance Study, which surveyed policyholders in Ontario and Alberta, found that 82% of consumers are satisfied with their insurers, a 2-percentage-point increase compared to the previous year.
Trust in insurers also remains high, with 76% of respondents identifying their provider as a trustworthy brand, even as average premiums rose over 12% nationwide in 2024.
The study evaluated customer satisfaction across key areas such as trust, claims handling, policy documents, and billing practices.
The findings suggest that insurers have largely maintained positive relationships with their customers despite mounting challenges. These include inflation-driven repair costs, a rise in auto thefts, and increased claims payouts, which led to premium increases of approximately 13% in Ontario and 12% in Alberta, the provinces with the largest private auto insurance markets.
Read more: Ontario's auto insurance premiums spike 12%
Communication emerged as a critical driver of satisfaction. Policyholders who interacted with their insurer through their preferred communication channel reported significantly higher satisfaction levels, with live interactions slightly outperforming digital alternatives like email or app messaging.
Generational differences also played a role, with older customers reporting higher satisfaction across most service categories, including claims handling and payment communication, compared to younger cohorts.
Meanwhile, the adoption of digital tools in Canada’s insurance sector remains low, with only 3% of claimants using mobile apps and 2% relying on secure websites for updates. These figures contrast with trends in the US, where satisfaction with digital claims processes has grown substantially.
Another standout finding was the higher satisfaction reported by policyholders using Usage-Based Insurance (UBI). Those with UBI policies indicated an 89% satisfaction rate, compared to 81% for traditional policies. However, UBI adoption remains limited, with only 28% of respondents open to considering it for future policies, even with a 5% discount.
Amid these insights, the study recognized CAA Insurance Company as the top performer across several categories. CAA ranked highest in overall customer satisfaction, trustworthiness, claims experience, policy documents, and billing statements, reflecting its ability to meet consumer expectations in a challenging market.
How can insurers balance innovation and traditional services to keep pace with consumer needs? Share your thoughts in the comments below.
