Consumers want options when it comes to their auto insurance, and the growth that online rate comparison site LowestRates.ca has experienced in its insurance segment is the proof. When the company started out, it put equal emphasis on insurance, mortgage and credit cards, but car insurance is what drove the business’s momentum.
“I think it’s because people aren’t as tied to their insurance company as they are to the company that provides them with a mortgage because buying a home is a larger financial commitment, and so there’s a level of trust with the big five banks,” said Justin Thouin, co-founder and CEO of LowestRates.ca. “Not that there isn’t a level of trust for insurance companies, but people are willing to try something different in insurance, whereas in mortgage, it is more difficult to convince them [to do so]. There’s also an influx of new Canadians that don’t have an established relationship with an insurance company and they go online, and [so do] new drivers.”
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