March 2, 2018 07:00
More and more vehicles travel on the roads of Quebec. This is especially true for recreational vehicles.
The annual report on the financial institutions 2016 written by thefinancial markets Authority has presented the evolution of the number of vehicles subscribed in Québec over a period of 10 years. The report indicates that all categories of vehicles has increased, with the exception of snowmobiles.
36 % fewer snowmobiles in 10 years
The categories of motorcycles and all-terrain vehicles (ATVS) have respective increases of 36 % and 24 % over 10 years, while the commercial vehicles and public vehicles show increases of 14 % and 12 %. The category of snowmobiles presents a decrease of 36 % for the same period.
As such, there was 252 000 motorcycles on our roads in 2016. 10 years ago, there were 67 000 less. As for the BIKE, there were 313 376 cars of this kind on our roads in 2016, an increase of nearly 61 000 vehicles in 10 years. However, it is the opposite for the snowmobiles. The mild winter recorded in 2016 has decreased to 126 796 the number of snowmobiles in 2016. A year earlier, there were 181 210. 10 years ago, there was near 200 000.
The premiums will increase
The report also presents the evolution of the average written premium for other classes of risks related to car insurance in Quebec. The risk categories of snowmobiles and utility vehicles have both seen their average written premium increase in the year 2016. The increases for these two categories of vehicles are, respectively, 38.3 % and 2.7 %.
For passenger vehicles, the average written premium for this category increased 1.9 % in 2016. Although it is the second consecutive increase, the average written premium decreased 4.2% over a period of 10 years.
According to research carried out by the Authority in 2016, » the two insurers, representing 2.7% of the market of passenger cars, provide for a reduction of their rates during the year 2017. While 43 insurers, representatives, 90% of the market, are considering an increase to 2017 «.
Certain categories of vehicles will see their average premiums written decrease year by year. This is the case of a vehicle that the public, who observe a decrease in average written premium for a 3rd year in a row and all-terrain vehicles which, on the other hand, observed a decrease in average written premium for the tenth year in a row.
Explosion of the average premium snowmobile
Another factor that may explain the declining popularity of the snowmobile is that its average premium has suddenly exploded. In 2015, it was $ 175. It has increased to $ 70 in 2016, and move on to 242 $, an increase of 29 %.
It is also the first time in 10 years that the average premium snowmobile in Quebec passes the mark of 200 $. In 2006, it stood at 112 $.