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Survey: 74% of Canadian drivers do not know that they must "update their insurance provider"

Survey: 74% of Canadian drivers do not know that they must "update their insurance provider"

By Omayma othmani

Published: October 7, 2022

A new survey showed that many Canadians are driving more with the return to offices and workplaces, but most of them do not know that they must inform their insurance companies about this change, which experts say may cause problems in the future. The survey, conducted by Leger on behalf of BNN Bloomberg and RATESDOTCA, a Canadian company that compares insurance prices, found that while one in five Canadians was driving more than they were six months ago, 74 percent of those did not report it and did not know they were supposed to do so. Kelsey Hawk, a car insurance expert at RATESDOTCA, said in a press release: “This information is clarified in the car policy wording; however, not everyone reviews these documents carefully. If you are someone who does not frequently make changes to your car policy (car usage, updating your address, or making changes to the car), you may not be aware of the fact that changes in usage must be disclosed to your insurance provider.” The study, conducted in September, surveyed the opinions of 1,522 Canadians about their driving habits. At the beginning of the pandemic, the roads were left empty with workplaces closed; even with the easing of public health measures, driving levels remained low over the past two years due to many companies shifting to remote work. This sharp decline in driving means many drivers got a break from car insurance premiums. According to the survey, along with the 20 percent of Canadians who said they are driving more than they were six months ago, 11 percent said they have now returned to commuting. But 44 percent said they did not tell their insurance company that their driving pace had changed, and nearly three-quarters said they did not know they had to. However, among respondents who said they knew they had to report increased mileage, 54 percent said they never did. Hawk said in the statement: “Consumers may feel this information is not relevant and might think they will save money by not reporting it, or that it will have no impact on their policy.” The reason drivers are asked to update their insurance provider if there are any significant changes in their driving pace is that mileage is linked to the insurance price and whether someone is covered in the event of a collision.

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