The biggest car insurance company in Canada is buying new cars
The biggest Canadian car insurance business is getting a makeover, as the Canadian Auto Insurance Association (CAA) announced Tuesday that it will buy a fleet of new vehicles from the Canadian Motor Vehicle Association (CMVA).
The CMVA has more than 400,000 members across Canada, with more than 6,500 in Ontario.
“It’s a great opportunity to partner with the CMVA, and provide a high-quality product that is available to all members,” said CAA President and CEO, Scott Taylor.
“We are proud to be joining the CMVAs automotive and auto insurance network and look forward to expanding the coverage of our members across the country.”
Taylor said the CMVCA will have the right to make any modifications to the vehicles it purchases, including modifications to windows, door seals and exterior paintwork.
The CMVAA will be the exclusive vehicle seller for the CAA, with a 20 per cent ownership stake.
CMVA President and GMB CEO, Tom Kincaid, said the acquisition would give the CMVB the chance to sell its members a “higher-quality, more efficient vehicle,” and said the sale will benefit members of both organizations.
“The CMVA is committed to providing a level playing field in our industry,” said Kincad, who will also continue to manage the CMVEA.
The acquisition is expected to be completed by the end of the year.
“Our members will enjoy the benefits of a more competitive marketplace, which will make our members safer and more dependable,” said Taylor.
The move to buy vehicles from CMVA comes as a major shakeup in the industry, which has been dominated by the Canadian Car Insurance Association, the Canadian Automobile Association, and the Canadian Insurance Association.
With the CMAA in control of the CMVs, the CMVI will now have a greater say in who buys their vehicles.
CMVIA members include the majority of Ontario’s auto insurance carriers, including AutoInsurance.ca, BlueCross, and CAA.
The three associations control almost half of the Canadian auto insurance market, according to a 2016 survey by the Canada Insurance and Banking Association.
The CAA represents insurance companies in British Columbia, Manitoba, Ontario, Quebec, and New Brunswick, as well as members in the province of Quebec, the territories of Alberta and Saskatchewan, and Atlantic Canada.
The Canadian Motor Car Association is a trade group for Canadian auto insurers, with about 100 members across Ontario.
It represents about 8.5 million drivers, with the largest membership base in the GTA.
“I am delighted to be part of this exciting alliance,” said Scott Taylor, CAA president and CEO.
“As CMVRA members, we know the importance of making the CMVO products available to our members.
This acquisition will give us a much-needed opportunity to provide the best insurance products and services to our membership.”