By CRM staff
Toronto, Ontario – July 24, 2018 — Intact Insurance was left out in the cold by drivers the company discounted for claiming to have winter tires.
Jean-Farncois Larochelle, director of Intact’s data lab, pointed to evidence that proved drivers with winter tires “were having worse loss ratios” than those who went without them.
“It was kind of surprising,” said Larochelle.
After further investigation, Intact found that many clients who had claimed to have bought winter tires had never actually taken the time to install them.
“I don’t know if they lied or if they forgot to put winter tires on that winter,” Larochelle said.
Since 2016 Ontario has required auto insurers to provide discounts to customers with winter tires. Drivers can usually expect to save five percent off their insurance premiums, but rates can vary depending on the insurer and individual policy. Those who actually use their winter tires can expect to get a return on their investment and then some.
“Claims are reduced when people have winter tires on their cars, especially driving in climates like we have in Ontario,” said CAA Insurance president Matthew Turak. “The treads on the tires do allow you to stop sooner and prevent accidents.”
Intact had the highest Canadian property and casualty insurance market with 17 percent of the industry’s net premiums written in 2017, according to Canadian Underwriter’s 2018 Statistical Guide.
