Work commute returns but Canadians aren’t updating insurance: survey


A brand new survey has discovered many Canadians are driving extra with the return to places of work and workplaces, however most don’t know they need to be reporting this alteration to their insurance coverage corporations, which specialists say might trigger points down the road.

The survey, carried out by Leger on behalf of BNN Bloomberg and RATESDOTCA, a Canadian firm which compares insurance coverage charges, discovered that whereas one in 5 Canadians have been driving greater than they have been six months in the past, 74 per cent of those that haven’t reported this elevated mileage to insurance coverage suppliers didn’t know they’re presupposed to.

“This data is printed within the auto coverage wordings, nevertheless, not everybody opinions these paperwork completely,” stated Kelsey Hawke, RATESDOTCA auto insurance coverage professional, in a press launch. “If you’re somebody who doesn’t continuously make adjustments to your auto coverage (automobile utilization, updating your deal with, or making automobile adjustments) you will not be conscious of the truth that adjustments to utilization must be disclosed to your insurance coverage supplier.”

The survey, performed in September, polled 1,522 Canadians about their driving habits and whether or not they have been notifying them to their insurance coverage suppliers.

Initially of the pandemic, roads have been left empty as workplaces shut down. At the same time as public well being measures eased, driving ranges have stayed low over the previous two years because of many corporations shifting to distant work.

This sharp lower in driving meant many drivers received a break on their auto insurance coverage premiums.

However in 2022, increasingly workplaces requested employees to return to the workplace, bringing again a surge in driving ranges with the day by day work commute.

In accordance with the survey, together with 20 per cent of Canadians saying they’re driving greater than they have been six months in the past, 11 per cent stated they’re now again to commuting.

However 44 per cent say they haven’t informed their insurance coverage supplier that their driving frequency has modified, and almost three-quarters of these respondents stated they didn’t know they needed to.

Nonetheless, out of the respondents who stated they knew they need to be reporting the mileage enhance, 54 per cent stated they by no means have.

“Customers might really feel this data just isn’t related and might imagine they’ll lower your expenses by not reporting, or that there can be no impression to their coverage,” Hawke stated within the launch.


The rationale drivers are required to replace their insurance coverage supplier if there are any giant adjustments within the frequency of their driving is as a result of mileage is related to the value of insurance coverage — and as to if somebody is roofed within the occasion of a collision.

Primarily, an individual who solely drives as soon as every week to go to the grocery retailer is much less prone to get into an accident than somebody who drives backwards and forwards from work daily. This implies the one who drives occasionally could have a decrease premium for his or her insurance coverage.

There are different elements, akin to age, gender and placement that play into the value of a premium, however driving frequency is the probably to have modified lately for Canadians.

The hazard of not informing your insurance coverage supplier of a rise in mileage, in line with the survey, is that when you acquired a reduction as a result of pandemic, you could not have the protection you want now when you do get right into a collision.

You may additionally get caught in a breach of coverage when you get right into a collision on a piece commute, however the insurance coverage supplier was beforehand informed you didn’t have a piece commute, Hawke defined. If an insurance coverage supplier deems this a misrepresentation of coverage particulars, they may deny your insurance coverage declare.

The survey discovered that working Canadians aged 18 to 34 have been extra possible to concentrate on the requirement to report mileage will increase at 71 per cent, in comparison with 61 per cent of these age 35 and older, and have been extra prone to report these to their supplier.

Youthful Canadians have been additionally extra prone to imagine that it’s a severe offence to not report the change in mileage, in line with the survey.

In accordance with RATESDOTCA, when you’re not sure if a brand new or resumed work commute has considerably elevated your mileage, you may calculate it by utilizing a mapping software program to see what number of kilometres that commute is, double it, after which multiply it by the variety of days every week that you simply’ll be going into work.

Your annual mileage is your weekday and weekend commutes added collectively and multiplied by 52 — the variety of weeks in a 12 months.

“It’s necessary to report utilization adjustments,” Hawke stated. “The very best observe is to attach along with your dealer or agent at the very least every year to make sure your coverage data is correct and updated.”


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