More Canadians are driving to work, but not all of them are informing their insurer that they are on the road more, a new study has found.
According to a Leger survey conducted for the insurance comparison website RATESDOTCA and BNN Bloomberg, one in five Canadians are driving to work more than they were six months ago. The report also said that working Canadians aged 18 to 34 are seeing their work commute increase more than those aged 35 and above.
But the same survey also found that 74% of drivers are not aware that they must inform their insurance provider of their increased mileage, while 44% indicated that they failed to report it.
This is relevant, RATESDOTCA explained, as many commuters got accustomed to driving less during the pandemic, which meant they got a break on their auto insurance premiums. Drivers are obligated to inform their insurers of any changes to their driving habits.
“This information is outlined in the auto policy wordings, however, not everyone reviews these documents thoroughly,” said RATESDOTCA auto insurance expert Kelsey Hawke. “If you are someone who doesn’t frequently make changes to your auto policy (vehicle usage, updating your address, or making vehicle changes) you may not be aware of the fact that changes to usage need to be disclosed to your insurance provider.”
The report also noted that 54% of respondents knew that they must disclose their mileage increase, but never heave. Canadians aged 18 to 34 were also more aware of the conditions of their auto insurance policy, and more in the 18-34 age group (71%) claimed to know about the requirement than the 35+ group (61%). More of those in the 18-34 group also informed their provider about driving more frequently (49%) than the 35+ group (36%).
RATESDOTCA also noted that while 46% of Canadians consider non-disclosure of a kilometre increase to be a serious offence, 51% of the group still never reported it. Another 31% believe not reporting an increase in driving distance is not a serious concern.
“Consumers may feel this information is not relevant and may think they’ll save money by not reporting, or that there would be no impact to their policy, said Hawke.
RATESDOTCA warned that those who choose to withhold informing their insurer of any changes to driving activity are setting themselves up for a breach of policy.
