Do Canadians want to buy insurance from their car manufacturers?

Just over a quarter (27%) of Canadian consumers are very or somewhat interested in purchasing car insurance directly from their manufacturers, a recent Deloitte survey found. 

When asked what they saw as the primary benefits, almost half (47%) of interested respondents believed they would save costs over their current insurance providers by buying directly from auto manufacturers, said the Deloitte Canada 2023 Global Automotive Consumer Study. 

Over a third (34%) of interested drivers listed convenience as a primary benefit of buying directly from the manufacturer, and 18% cited efficiency or a streamlined purchase process.

When a vehicle manufacturer wants to provide auto insurance in Canada, it must have a subsidiary approved by the government to write insurance. This subsidiary — or insurer — must either be incorporated in Canada as a P&C insurance company or a foreign P&C insurance company that is approved to establish an insurance branch in Canada. 

For example, luxury car company Porsche launched Porsche Insurance into the Canadian marketplace in mid-2022. Offered exclusively to Porsche vehicles owners, the auto insurance product is designed and brokered by Aon Canada. 

Porsche Financial Services Canada and its affiliate brands have disclosed they are not insurance companies or licensed insurance agents and are not selling or offering advice regarding insurance products. 

Other study findings showed Canadian consumers trust their original equipment manufacturers the most (13%) to manage the data generated by their vehicles, followed by their vehicle dealers (10%) and their insurance companies (9%). However, the largest percentage (35%) of consumers said they don’t trust anyone with their vehicle data. 

Consumers are most concerned (53%) that their biometric data will be shared with their car manufacturers, dealers or insurance companies. They also expressed concerns over sharing their car’s location and driving-behaviour data.  

The exception is that consumers said they are ready to share their info if it helps them get maintenance updates, traffic/road safety updates, suggestions for safer routes or parking options. And 45% said they would share their data if it led to a customized/optimized vehicle insurance plan. 

For example, U.S. auto insurer Metromile in 2020 announced a partnership with Ford Motor Company to provide owners of eligible Ford vehicles with built-in connectivity and personalized car insurance coverage based on a driver’s vehicle data.

Feature image by iStock.com/Perawit Boonchu