One would expect that because auto insurance in Ontario is mandatory, that it would make up most of the property and casualty insurance pie. But it looks like times may be changing.
According to new statistics from the Office of the Superintendent of Financial Institutions (OSFI), the ratio between auto and property insurance stood at around 61% to 39% a decade ago. Last year, the gap in that ratio has narrowed to 53% and 47%, respectively.
These numbers may be somewhat ‘inside baseball’ for consumers, but by sifting through the tea leaves you can see the development of changing lifestyle trends in our society.
More people moving into downtown Toronto are choosing not to buy a car and opting for alternative transportation methods such as public transit, Uber or Lyft. Scores of new condominiums don’t even offer parking spots any longer.
As for the emergence of autonomous vehicles, that could further diminish the need for auto insurance as the consumer shifts from individual persons requiring auto coverage to manufacturers and technology companies requiring the insurance.
The world is ever changing, but whether you still require your own car, or want to opt into more urban living relying on other forms of transportation, it is prudent that you consult a qualified and reliable broker to find the best coverage that fits your lifestyle needs.