Claims are faster, frustrations are fading — yet auto insurance costs loom large

“Even though many survey respondents understandably remain price-conscious this year — with 36% of respondents choosing their insurer because they offered the lowest price — the right coverage isn’t always the cheapest option. And as we saw during the pandemic and its aftermath, being caught without the coverage you need can be an expensive mistake.”

Claims service has largely recovered

Satisfaction with claims handling improved across all age groups, from Gen Z to Boomers, reflecting faster processing times and better communication. The study attributes the rebound to insurers working through the pandemic-era backlogs that slowed repairs and settlements in 2022 and 2023.

“Consumers have high expectations when filing a claim, and insurers have listened,” said Craig Worden, president at Pollara Strategic Insights, in a related statement. “Claimants are more satisfied with all aspects of the claims process than they were three years ago, especially in terms of communications and ease of reaching representatives.”

With claims performance stabilizing, the study suggests service quality is increasingly a baseline expectation rather than a key differentiator.

Price pressure is reshaping insurer choice

Despite improved service, cost remains top of mind for many drivers. Ongoing economic uncertainty and higher insurance premiums are pushing more Canadians to compare policies at renewal and prioritize affordability.

The uptick in respondents choosing insurers based primarily on price reflects that shift. While trust and claims service still matter, the study indicates that for many households, premiums are now the deciding factor — particularly as budgets remain stretched.

Younger drivers are accelerating digital expectations

The study also highlights a generational divide in how Canadians prefer to interact with insurers during a claim. While phone calls remain the most common starting point overall, younger drivers are significantly more likely to use digital channels.

Roughly 80% of Boomers used the phone to initiate a claim, compared with 63% of Gen Z respondents and about 70% of Millennials. Younger drivers were more inclined to rely on apps, websites, email or online chat to receive updates, underscoring growing expectations for flexible, digital communication.

Usage-based insurance remains underused

Awareness of usage-based insurance (UBI) is high, but adoption remains limited despite strong satisfaction among those who use it. Across all age groups, 96% of respondents with UBI policies said they were easy to set up, 71% said the policies reflected their driving habits and 88% said they were likely to continue using them at renewal.

In a period of heightened price sensitivity, the study suggests UBI could offer meaningful savings for some drivers — particularly lower-mileage or safer households — yet remains a niche option.

This comprehensive study demonstrates that auto insurance claims service has improved meaningfully throughout Canada, reducing one of the biggest pain points for consumers in recent years. But with premiums under pressure, consumers are weighing price more carefully than ever, making it essential to balance cost savings with coverage that will hold up when it’s needed most.

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