Auto Insurers' approach to rebates and refunds during COVID ranges widely

May 08, 2020, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

All over the country driving has decreased substantially. Many people aren’t leaving the house at all in their cars except for essential errands to the grocery store. We are doing our part and it shows. There is a glut in the global gas market because people simply are not driving.

What is astounding though, is that insurance companies are not reflecting the decrease in driving by reducing rates to their customers automatically. Some drivers have called and takent their cars off the road and had subsequent minor rate changes, but by and large business rolls on for the inusrers. They are happy to continue to cash cheques while their lianility to pay out on accidents has dropped dramatically over the last two months.

The Insurance Bureau of Canada has estimated that the slow down could result in $600 million in savings to consumers.

Many insurers have responded with measures to accommodate customers having trouble paying their bills by waiving NSF fees and making flexible payment plans. They have been slower however to react to the dramatic decrease in driving. Some drivers took their cars ‘off the road’ and have received some savings but by and large the insurers are not issuing across the board rebates to customers.

To get any savings you will have to call your agent or broker to advise them of your individual situation.

Here is a summary of what some of them are doing taken from here.

Allstate: They are issuing a one time rebate sometime in May of about 25% of your premium as a shelter in place measure.

Aviva: They have a ‘Stay Home’ endorsement to reduce your premium by 75% if you stop driving altogether. If you are still on the road but less than normal you could still save 15%.

CAA: They are doing a 10% base rate reduction to home and auto

The Co-Operators: Call for a reduction

Dejardins: They are automatically increasing home coverage to accommodate home based work, you have to call them to discuss and driving discounts.

Echelon: You may see a 15% rate cut if you are driving less, and up to 80% if you put your car ‘on hold’ and stop driving completely.

Economical: You have to call and discuss your individual situation but if you take your car off the road you can save up to 75%

Gore Mutual: They are offering a Corona Virus Discount. You can expect a payment worth 20% of your premiums for three months of payments automatically. You don’t have to do anything.

The Personal: Call for a refund based on your situation

RSA: Call for an individual assessment.

TD Insurance: they are offering a 90 payment deferral

Wawnesa: You can take your car off the road to save some premiums.

Summary:

There is no unified approach to the pandemic for drivers looking to save money on their premiums. This is money which should be refunded given the risk of accident and injury is greatly reduced when driving is reduced or stopped altogether.

If your insurer isn’t offering any rebates you should consider shopping around for a new more responsive insurer.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

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