COVID-19 : Reductions in Auto Insurance Premiums are Coming
To help Canadians cope with the financial impact of COVID-19, Insurance Bureau of Canada (IBC) member companies are offering substantial consumer relief measures.
For consumers whose driving habits have changed significantly, IBC member companies are offering reductions in auto insurance premiums to reflect this reduced risk. IBC expects this could result in $600 million in savings to consumers.
The reductions will continue for the next 90 days. Additionally, insurers have supported Canadians and businesses who are most adversely affected by honouring requests to defer premiums.
“This is an incredibly challenging and uncertain time for many Canadians, and insurers want to help alleviate some of the financial burden for the most vulnerable. Insurers understand that many drivers are no longer commuting or using their vehicle as regularly, which could result in savings,” said Don Forgeron, President and CEO, IBC.
Insurance customers whose driving habits have changed significantly or who are facing financial hardship as a result of the pandemic should contact their insurance representative.
As it relates to savings on auto insurance premiums, savings will vary depending on individual driving habits. Many insurers have transitioned their employees to work from home, and insurers ask for your patience as service levels may be strained.
In addition to adjusting premiums for drivers, IBC member companies have also committed to the following measures to help Canadians, which will also apply for the next 90 days:
- Explore flexible payment options for consumers who are in a vulnerable position or facing financial hardship as a result of COVID-19;
- Waive the NSF fees they would have charged if you have insufficient funds to cover your premium. You remain responsible for any fees your bank may charge you;
- If you are temporarily using your car or home differently (for example, you may be using your car to commute to work instead of taking public transit, or you may be working from home), it will not affect your premium or your ability to make a claim.
Insurers are also working with small business and commercial clients to help businesses manage their costs.
