Canadians Spend Average Of $3,100 Per Year For Insurance

ByAlexey SaltykovCo-Author: Jessica Mineau

WHAT'S THE OVERALL ANNUAL INSURANCE PRICE TAG?

Insurance means a lot of money for consumers, especially if they own several assets (auto, home) and want to protect their loved ones (life protection). But what exactly does it mean in terms of dollars? An independent research discovered that, on average, Canadians spend approximately $3,100 annually on their home, auto, and life insurance. This amount varies significantly across provinces and reaches $3,500 per year in Ontario, whereas the amount is much lower in Québec with approximately $2,400 annually.

TWO AND A HALF YEARS OF SALARY IN A LIFETIME

If we consider a working life time to be approximately 40 years, an average Canadian would spend $124,000 on insurance over a working lifetime (with an average salary of approx. $47,500 in 2011 / 2012. That means it would take about 2.5 years of salary to pay for insurance costs in Canada.

THE BIG THREE

The three largest components contributing to overall insurance premiums are home, auto, and life protection. This research takes into account consumers that have all three protections, and did not include other aspects, such as additional health benefits, credit protection (e.g. for mortgage or line of credit), travel insurance or luxury insurances such as coverage for boats, recreational vehicles or wine collections.

Which insurance contributes most to annual costs? No surprise here - auto protection is responsible for around half of all insurance costs. Home premiums contribute approx. 1/3 of all costs, and life premiums - 1/4.

INSURANCE IN ONTARIO REQUIRES BIGGER WALLETS

Insurance premiums vary significantly from province to province. The biggest difference results from variations in auto premiums. In Quebec, auto rates are much lower since the government covers injuries, whereas private insurers protect against property damage.

Ontario has the highest overall average annual costs of ~$3,600, followed by British Columbia with ~$3,200 and Alberta with ~$3,000. Of the four most populous provinces, Quebec consumers pay the lowest average costs of ~$2,400 for their insurance protection.

Ontario drivers pay significantly more for auto insurance than other Canadians, in part because the average cost of accident injury claims is five times higher than in other provinces as per recent report of auditor general Jim McCarter.

HOW DO INSURANCE PREMIUMS CHANGE FOR HOME RENTERS?

Those Canadians who don't own but rent their homes pay less on insurance premiums and average values go down by 25%-50%. Interestingly, the provinces with higher average insurance premiums for rented dwellings are Alberta and British Columbia, where the monthly insurance premiums reach $58 and $50 accordingly.

Alex Saltykov is a Co-Founder and CEO of InsurEye Inc http://www.insureye.com. Alex spent years advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, innovation, IT and operations.

InsurEye Inc. is a Canadian company that offers people transparency and insights around insurance using modern technology.

Our interactive tool InsurEye Peer Comparison will show you what your peers across Canada pay for their insurance. This way you understand if you overpay and what insurance providers you should choose to save on insurance!

https://insureye.com/insurance_toolkit/insureye-peer-comparison

Jessica is the Head of Content and Communications at InsurEye. She is a bilingual communications professional and experienced multimedia journalist.

Article Source:http://EzineArticles.com/?expert=Alexey_Saltykov

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Insurance: Car-Auto
Alexey Saltykov

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesInfluential Personnel Within the Actuary Division of Metropolitan LifeRecent ArticlesChecking Out The Benefits Of Uninsured Motorist CoverageDoing Your Homework Before Purchasing Insurance Saves You MoneyExploring The Reasons You Need Enough Insurance CoverageHow Staying With One Insurance Company Can Save MoneyThe Cheapest Insurance Coverage For Your Business VehiclesHow To Find The Least Expensive Vehicle CoverageAuto Insurance Policies - Different Types of Automobile Indemnity CoversAuto Insurance Policies For Amateur DriversAuto Insurance Policies - Some Basic Points To Remember While You PurchaseInsurance Shopping StudySubmitted On February 13, 2012. Viewed 1 time. Word count: 435.

MLA Style Citation:
Saltykov, Alexey, and Jessica Mineau.".".13 Feb. 2012EzineArticles.com.23 Feb. 2012 .APA Style Citation:
Saltykov, A., & Mineau, J. (2012, February 13). . Retrieved February 23, 2012, from http://ezinearticles.com/?Canadians-­Spend-­Average-­Of-­$3,100-­Per-­Year-­For-­Insurance&id=6879658Chicago Style Citation:
Saltykov, Alexey, and Jessica Mineau. "." EzineArticles.com. http://ezinearticles.com/?Canadians-­Spend-­Average-­Of-­$3,100-­Per-­Year-­For-­Insurance&id=6879658EzineArticles.com© 2012 EzineArticles.com
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