A survey conducted by LowestRates.ca has found that most Canadians are not doing their own research when shopping for financial products – showing huge gaps in their knowledge that brokers may look to fill.
Conducted by Ipsos, the survey revealed that consumers are likely to use websites to compare travel products, but not to compare car insurance, credit cards, and mortgages. The results of the study also suggest that lack of analysis leads consumers to overspend on these financial products.
According to the survey, Alberta had the highest response rate of survey participants – 45% – who answered that they do a lot of research when looking for financial products to purchase. Ontario was just behind (41%), followed by Atlantic Canada (39%), Saskatchewan and Manitoba (both 38%), Quebec (35%), and BC (31%).
On the other hand, the survey found that there was a higher percentage of Canadians who are more willing to compare the travel options available to them. A considerable number of Canadians use comparison websites to research (60%) and book (63%) their flights, the survey found. The study also discovered that millennials use these websites the most, with 67% using the sites to compare flights and 72% to compare hotel options. Baby boomers had the lowest rates of adoption among the age groups surveyed, but their figures are still considerable – 56% of baby boomers compare flights using websites, and 59% compare for hotels.
“The massive gulf between Canadians who compare travel options and financial products is disappointing. Because the latter is where you save real money,” said LowestRates.ca CEO Justin Thouin. “Sure, you can shave hundreds of dollars off your flight by using comparison sites, but taking the time to compare auto insurance or mortgages saves many of our users thousands of dollars a year — and those savings add up over decades.”
Only 45% of Canadians do their research before acquiring a credit card; 47% for those looking to secure car insurance; 60% for mortgage. While there are more people willing to carefully shop around for mortgages, only 42% do additional research when it comes to renewing their mortgage; 22% say they renew without doing any research beforehand.
Millennials are yet again the most likely to conduct their own research when comparing their credit card (50%), car insurance (52%) and mortgage options (48%), while baby boomers are the least (36% for credit cards, 36% for car insurance, 27% for mortgage).
“A few months ago, we found that many Canadians don’t understand how common financial products work,” added Thouin. “And this survey really hammers home that a large part of that is because Canadians can’t be bothered. We need to make comparing financial products as common as comparing flights or hotels.”
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