La Capitale reduces auto premiums 20 per cent in response to COVID-19
La Capitale Insurance and Financial Services is giving clients a rebate worth 20 per cent of their monthly auto premiums, until the COVID-19 confinement period ends. The measure applies to all clients, whether or not they have reduced the distance they usually travel.
The company says those who continue to drive as much as they did previously, are likely doing so because they are front line workers, supporting the public.
“The collective effort by Quebec residents to respect the COVID-19 confinement measures is having a tangible impact on the frequency of automobile losses. This reduction in risk should be reflected in the premium our insureds pay,” says La Capitale’s chairman and CEO, Jean St-Gelais. “We want everyone to benefit from this rebate, including our guardian angels and other workers providing essential services.”
La Capitale’s rebate will be automatically applied to insurance premiums for private passenger and commercial vehicles alike, effective April 1. The company says the rebate will cover the whole confinement period currently being experienced. The company asks those who do not need the rebate to donate an equivalent amount to the Red Cross or to the Véro & Louis Foundation.
Part of a wider industry effort to offer relief
According to the Insurance Bureau of Canada, the move is part of a wider industry effort to offer relief to consumers affected by the COVID-19 pandemic. The bureau says reductions in auto insurance premiums for consumers whose driving habits have changed significantly, could reach $600-million.
Desjardins General Insurance has also announced refunds on car insurance premiums for personal and business clients who are staying at home because of COVID-19. The Allstate Insurance Company of Canada is another example. The company, together with Pembridge Insurance Company and the Pafco Insurance Company also announced that it would give its personal auto insurance customers a one-time payment in May worth approximately 25 per cent of their monthly auto premium. The company is also offering payment deferrals and extension of existing coverage for customers who use their personal vehicles to deliver food, medicine and groceries for commercial purposes.)
Across the board, the IBC says its member companies have also committed to exploring flexible payment options and to waiving NSF fees if clients have insufficient funds to cover their premiums.