These car insurance companies are offering discounts due to COVID-19By: Zandile Chiwanza on April 21, 2020
Auto insurance companies are giving customers rebates since many Canadians’ driving habits have been impacted by the COVID-19 lockdown.
“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,” said Don Forgeron, President and CEO, Insurance Bureau of Canada in a press release.
“Insurers understand that many drivers are no longer commuting or using their vehicle as regularly, which could result in savings.”
IBC encourages insurance customers whose driving habits have changed significantly or who are facing financial hardship as a result of the pandemic to contact their insurance representative because savings will vary depending on individual driving habits.
Some drivers can save money on their car insurance by dropping a few coverages they don’t need, but if that’s not possible, here’s a list of auto insurance providers that are offering discounts because of COVID-19.
Allstate Canada, Pembridge and Pafco customers who have an active automobile policy will receive a one-time payment of approximately 25% of their monthly auto premium. Drivers can expect the “Stay at Home Payment” cheque in May.
The companies’ American division was among the first insurance providers to offer a discount due to COVID-19
Aviva Canada is offering premium reductions based on usage. Customers who must drive during the pandemic but are driving less may be eligible for savings of up to 15% by applying for Aviva’s new #StayHome endorsement.
These savings aren’t automatically applied. Customers have to call their broker or agent to discuss their specific usage to determine what savings are available to them.
Customers whose number of kilometres driven have decreased can apply through an online form to activate a 15% premium reduction.
Processing could take up to 30 days to be reflected but the discount will apply for three months. The last day to request this change is June 30, 2020. A belairdirect customer told lowestrates.ca they got $19 off, their monthly premium and it took about a week for the discount to reflect. Eligible customers can automatically qualify for further reductions for a period of three months from the moment this reduction is processed. After three months, your car insurance premium will automatically revert to reflect the kilometres you typically drive.
The Canadian Auto Association (CAA)
CAA Insurance will be offering a 10 % rate decrease for new and renewing auto insurance policyholders. This rate reduction is valid for the duration of a 12-month policy term.
Co-operators have finalized the details of their Reduced Driving Refund, a minimum 10% refund on the premium clients paid from April 1 to May 31. Eligible clients include those who are driving less and who are essential service workers.
If eligible, refunds will be applied to the policy, starting in July.
Desjardins General Insurance
Desjardins is offering refunds on auto insurance premiums for personal and business clients whose commuting habits have significantly changed and who are only using their vehicles for essential trips to such places as the pharmacy or grocery store. It will be calculated over a 3-month period and will reflect the client's annual distance travelled, as declared on their contract.
Customers interested in receiving this rebate should apply online by May 31.
Echelon Insurance customers whose vehicle usage has reduced or aren't using their vehicles during the pandemic are eligible for discounts. Echelon is offering 15% off for the reduction of the mileage associated with their policy. Customers have to reach out to their broker to request relief measures.
If you're driving less, you may be eligible for a reduction of up to 15% based on kilometres driven until June 30. If you aren't driving at all you can apply coverage suspension to your vehicle which can result in up to 75% savings. Economical customers have to reach out to their broker for applicable discounts.
Gore Mutual Insurance Company
Gore Mutual sent personal auto customers policyholders a one-time payment equivalent to 20% of three months premium. All in-force personal auto customers will automatically receive the payment by cheque.
iA Financial Group
iA Auto will be offering its policyholders a discount representing 20% of their monthly auto insurance premium. No need to apply for this refund because it's for all customers with an in-force auto insurance policy from April 1 to May 31, 2020. The refund is retroactive to April 1, initially for a two-month period, and could be extended depending on how government measures evolve.
Intact Financial Corporation
Intact Insurance is offering relief for customers on a case-by-case basis. The first option is a 15% reduction, on average, for customers who are driving less for three months. This reduction reflects the change in kilometres driven in a year and customers must fill an online form to activate the rebate.
The second option is a premium reduction of 75% per month, on average, when customers park and safely store their vehicle and until they start driving it again. By making this arrangement, you agree to not drive your car. If you’re interested in this option you have to contact your broker.
La Capitale Insurance and Financial Services
La capitale is offering all its automobile insurance clients a 20% reduction applicable to their insurance premiums for private passenger and commercial vehicles.
The reduction kicked off on April 1, 2020 and will cover the whole confinement period. The insurance provider said this measure applies to all clients, whether or not they reduced the distance they usually travel.
Northbridge Insurance is offering an automatic 15% premium rebate for three months or other options to reduce premiums for customers not driving at all.
Existing auto insurance customers who are driving for essential travel only could save 15% off premium payments for 3 months. Discounts applied prior to May 31st will automatically revert back any temporary changes to your policy after the 3 months unless you call to review your policy at that time.
The Personal car insurance customers using their vehicles for only essential travel (getting groceries or trips to the pharmacy) could be eligible for a refund on their auto insurance premium. The refund is based on minimal use of your vehicle (motorcycles and recreational vehicles are excluded).
To get the refund, customers have to complete an online form by June 30, 2020.
SSQ Insurance is offering all its clients with auto insurance policies a 20% rebate on their monthly premium for each insured vehicle whether consumers have changed their driving behaviour or not.
As of April 1, 2020, the insurer will offer the discount for the entire confinement period and clients will not be required to take any steps to get the rebate.
Travelers Canada is giving its personal auto insurance customers an automatic credit of 25% on one month’s premium through its new Stay-at-Home Auto Premium Credit Program. The insurer is also extending auto coverage for customers whose temporary job responsibilities include using their personal vehicles to make food, grocery, pharmacy, and medical supply deliveries.
Customers are encouraged to contact their broker to discuss reducing coverage for savings of up to 75%. NSF fees for non-payment have been waived until May 25.
We’ll update this post as more car insurance companies announce discounts.