Are Canadian drivers that much different from their American counterparts? Actually, quite a bit different – and it is those differences that brokers can play to their advantage when marketing auto insurance.
While Americans see driving as a ‘God-given right’ to have the biggest vehicle on the block – whether they can afford it or not, Canadians are only willing to spend an ‘acceptable’ amount on transportation, according to Dennis DesRosiers of DesRosiers Automotive consultants.
Some of the major differences include the number of owners a typical vehicle will have in its lifetime (three in Canada, compared to four in the U.S.); and most surprisingly, the number of pick-up owners (30.6 per cent in Canada compared to 22.3 per cent in the U.S.), numbers that have changed from 10 years ago.
Ironically, we are bigger on the smaller end too, with half of all the vehicles sold in Canada being compact cars, which only accounts for one-third of the U.S. market.
Given the importance Canadians place on fuel economy, DesRosiers is surprised by this sudden passion for trucks.
As for the subcompact market – those numbers double again for Canadians, when compared to their American cousins. But for mid-size cars, almost 40 per cent of Americans choose to purchase an intermediate size vehicle, compared to only 20 per cent of Canadians.
10 differences between Canadian and American automotive ownership:
1. The U.S. pre-owned market is much larger than Canada’s, using the one-tenth rule of thumb. That is, down south, the pre-owned market is up to 45 million units a year, versus what DesRosiers estimates to be about 3 million in Canada.
2. The average expected life of a vehicle in the United States is 15.36, versus 12.88 years in Canada. The harsh Canadian weather plays a part, but so does psychology, as many Americans are happy to drive their vehicles until they die, instead of trading them in while they are still in decent condition. (continued.)
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3. In Canada, 77.8 per cent of the driving-age population owns a vehicle, versus 96.3 per cent in the United States – and U.S. ownership has been higher than 100 per cent in recent years.
4. A vehicle in Canada typically has just three owners, compared to four in the United States – which means the extra owner is likely buying a very old vehicle, in turn creating a large U.S. do-it-yourself parts aftermarket not seen north of the border.
5. Half of all the cars sold in Canada are compacts, while in the United States compacts account for less than one-third. The Canadian subcompact is almost twice the size of the U.S. subcompact segment, too.
6. Just 1.7 per cent of Canadian passenger car buyers purchase a high-end luxury car, versus 4.4 per cent in the United States.
7. Mid-size cars? Twenty per cent of Canadians car buyers shop for an intermediate car, while in the United States the mid-size segment accounts for 39.6 per cent of all cars bought.
8. Canadians are nuttier about pickups than Americans. The Canadian pick-up truck segment is a huge 30.6 per cent, versus 22.3 per cent in the United States.
9. Compact sport-utility sales account for 32.2 per cent of the market in Canada, versus 25.7 per cent down south.
10. Overall, Canadians love pickups. This is a reversal from a decade ago when 56.6 per cent of the light vehicles bought by Americans were light trucks, versus 47.8 per cent in Canada. Last year, light trucks accounted for 52.2 per cent of U.S. sales, versus 57.6 per cent of sales in Canada.
