Winter tire usage in Canada is on the rise, a new study finds.
A new Leger study commissioned by the Tire and Rubber Association of Canada (TRAC) found nearly three-quarters of polled Canadian motorists (73%) believe extreme weather events related to Canada’s changing climate have made winter tires more important than ever.
What the winter holds for Canadian P&C insurers remains to be seen, but the industry has already witnessed its costliest catastrophe season on record, paying out more than $8 billion in insured losses this year.
According to TRAC’s survey, winter tire usage in Canada now stands at 78%, a 10-point increase from 2016. Outside Quebec, where winter tires are mandatory by law, winter tire usage reached 73%, TRAC said in a press release Tuesday. Winter tire usage is the highest in Atlantic Canada at 85% and the lowest in British Columbia at 68%.
There is a caveat to relying on Canadians to self-report winter tire usage accurately, as insurers have discovered in the past. In 2018, Canada’s largest insurer found motorists who reported having winter tires installed “were having worse loss ratios” than those driving in the winter without such tires, the director of Intact’s data lab said at the time. After digging into the loss ratios, Intact found many insureds who said they had winter tires had not installed them, although it’s not clear if the deception was intentional or not.
Financial pressures
From TRAC’s perspective, the survey of 1,606 Canadian drivers found that despite growing usage, current financial pressures are causing some motorists to doubt an investment in winter tires. Just under one in three (30%) say they are now less likely to buy winter tires because of high living costs. At the same time, 83% believe winter tires are an important investment despite the rising cost of living.
“When it comes to climate change, there’s no doubt changing weather patterns are a serious concern for Canadian drivers,” says Carol Hochu, president and CEO of TRAC. “We all see the impact of climate change and the increasing frequency of sudden and severe winter weather events.
“The good news is that the number of drivers investing in winter tires climbed over the last decade and they are better prepared for winter motoring. Despite the cost-of-living increase, they know winter tires are critical in navigating unpredictability on winter roads, and 79% believe using winter tires saved them from being involved in a potentially hazardous driving situation.”
Protecting the safety of one’s family (79%) was the most common reason for buying winter tires, the survey found. Other common reasons for investing in winter tires include lower insurance premiums (20%), trusted advice from family and friends (16%), and advice from retailers (8%).
The most common reasons for not using winter tires are the belief that all-season tires are good enough (62%), cost (27%), and reduced driving in winter (23%).
Since one out of every five drivers still opts out of using winter tires, educating consumers remains essential, and greater adoption of winter tires is crucial for making our roads safer for everyone,” Hochu says.
Feature image by iStock.com/djedzura
