Who are the most trusted private auto insurers?

Despite double-digit increases in auto insurance rates in Ontario (13%) and Alberta (12%) over the past year, insurers in these private insurance provinces have nevertheless improved their consumer trust scores, says an annual consumer satisfaction study by RATESDOTCA.

“What we found may surprise some,” the rate aggregator says in its comments about the study, released Thursday. “Overall satisfaction with auto insurance companies is 82%, improving by two percentage points [year over year] in 2024, with 76% reporting that they believe their insurance company is a trustworthy brand.”

RATESDOTCA commissioned Pollara Strategic Insights, a Canadian public opinion and market research firm, to conduct an online survey of more than 12,600 auto insurance customers in Ontario and Alberta between Sept. 16 and Oct. 8, 2024.

CAA Insurance Company took the Number 1 spot for the most trustworthy company in the study. Number 2 was Gore Mutual, while Intact and Wawanesa tied for the third spot in the most trusted brand category.

Insurers offering a multi-channel distribution strategy — i.e., some combination of insurance brokers, online portals, mobile apps, and direct agents, among others — tended to see elevated consumer trust scores compared to those that did not, the survey found.

“Overall satisfaction with insurance companies is 85% amongst those who communicated using their channel of choice versus 70% for those [that] did not,” RATESDOTCA CEO Igal Mayer says in comments about the survey findings.

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The study also shows consumers value one-to-one communication.

“Those who communicated with a live person are slightly more satisfied with their insurance company overall than those who communicated by messages via app/website or email,” says Mayer. “A multi-channel strategy is the best way to keep consumers satisfied and loyal to their insurance company.”

Another way to garner customers’ trust is to offer usage-based insurance (UBI), the study suggests.

“Those with [UBI] policies are more satisfied with their insurance companies,” Mayer says. “Those that have UBI policies report higher levels of satisfaction with their insurance companies (89% versus 81%) [compared to] those without UBI policies.”

Sixty percent of customers say they are at least somewhat familiar with UBI, the study shows. That said, very few are using it, and only 28% say they are likely to consider it for their next policy with a discount of at least 5%. Younger cohorts are more familiar with UBI, while older UBI policyholders say they are more likely to continue using a UBI policy.

Road safety is one way for insurers to connect with consumers regarding the the virtues of UBI, Mayer says.

“While UBI or telematics policies can help consumers save money and insurers analyze and personalize risk more efficiently, perhaps one of the biggest benefits of widespread use of UBI and telematics is increased road safety,” he says. “Safer roads are of growing concern in both rural areas and busy urban centres such as Toronto, with dozens of deaths and hundreds of injuries recorded each year.

“Broader promotion and uptake of UBI not only benefits insurers and consumers, it can also aid in easing some of Canada’s intensifying traffic woes.”

Apart from CAA topping the list of most trustworthy insurers, companies ranking in the Top 3 within the other surveyed categories include:

Best Overall

1. CAA Insurance Company
2. Gore Mutual Insurance
3. Intact Insurance

Best Auto Claims Experience

1. Northbridge Insurance
2. CAA
3. Intact Insurance

Best Policy Documents

1. CAA
2. Gore Mutual Insurance
3. Economical Insurance [Definity]

Best Billing Statements

1. CAA
2. Gore Mutual Insurance
3. Intact

Feature image courtesy of iStock.com/Parradee Kietsirikul