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COVID-19: P&C insurers take measures

By Hubert Roy | May 01 2020 10:45AM

What insurers are offering their customers auto insurance credits due to the COVID-19 pandemic? Which firms have taken business insurance measures?

The Insurance Portal has compiled the new offerings. In the table below we compare the measures taken by P&C insurers, by business segment.

Please note that this table is not exhaustive. It will be updated as new measures are announced.

Personal auto insurance

Allstate: reduction in monthly premium of up to 25%.

Aviva Canada: average discount of 15%, but may reach 75% if vehicle is in storage.

National Bank Insurance: 15% premium reduction on average for three months, may reach 75% if vehicle is in storage and no one is driving the vehicle.

belairdirect: 15% premium reduction on average for three months, may reach 75% if vehicle is in storage.

CAA-Québec: automatic credit of 20% on premiums for April and May.

Co-operators: reimbursement of at least 10% of the premium for the period of April 1 to May 31.

Desjardins Insurance: discount calculated over a 3-month period, proportionate with annual kilometres reported on insurance policy.

Echelon: reduction of the mileage associated with customers’ policy, for a premium reduction of up to 15%. Removal of all but comprehensive coverage, for a premium reduction of up to 80%, if the vehicle is not in use and is safely stored during the pandemic.

Economical: premium reduction if coverage limited or mileage reduced.

Gore Mutual: credit of up to 20% for three months.

iA Financial Group: automatic credit of 20% on monthly auto insurance premium for two months.

Intact Assurance: 15% premium reduction on average for three months. If the vehicle is not in use and is safely stored, the reduction can reach 75%.

L’Unique General Insurance: automatic reduction of 20% on monthly premiums for the duration of the lockdown period, calculated starting April 1.

La Capitale General Insurance: reduction on the monthly auto insurance premium calculated automatically using the premium for each month of lockdown starting April 1, 2020, until the resumption of business results in more normal traffic flow.

Promutuel Insurance: credit on auto insurance premium applicable for three months, calculated based on reduction of vehicle use. This measure also covers essential workers who use their vehicles to commute to work.

RSA Canada: premium reduction for customers who drive and travel less, or who have stopped using their vehicle due to a change in circumstances related to the pandemic.

SSQ Insurance: 20% rebate applicable on the monthly premium of each insured vehicle.

TD Insurance: option of adjusting the premium until July 16.

Travelers Canada: automatic credit of 25% on the monthly premium through the Stay-at-Home Auto Premium Credit Program.

Unica: 15% reduction for April-May-June for all auto insurance customers.

Wawanesa: reduction of coverage of up to 75% of the premium or $80 per vehicle.

Home insurance

Desjardins Insurance: temporary increase in insurance limits for loss of home-business-based property, up to $10,000.

Gore Mutual: increase in personal liability and business property coverage of up to $5,000 on all existing personal property policies.

Intact Assurance: extension of coverage at no charge for people temporarily offering childcare services for a reasonable number of children to help families affected by COVID-19.

TD Insurance: increase in current limit of home insurance coverage to $10,000 for loss of business-based property, at no additional cost.

*Several insurers have increased the coverage amounts for property insurance, at no charge, for workers who suddenly began teleworking. However, RSA Canada advises self-employed workers who were not previously teleworking to consult their insurance advisor.

Payment deferrals and missed payment fees

Allstate: defer payments for up to 90 days.

Aviva Canada: temporarily suspending fees due to nonsufficient funds.

National Bank Insurance: waiving of missed payment fees and possibility of deferring payments.

belairdirect: waiving of missed payment fees and possibility of deferring payments.

Desjardins Insurance: measures will be applied case-by-case.

Economical: deferred payment and waiving of NSF fees.

Echelon: payment options available. Waiving of missed payments fees.

Intact Assurance: waiving of missed payment fees and flexible payment options, notably deferral of payment.

RSA Canada: fees for NSF cheques after April 1, 2020 are waived. Payment options are available.

TD Insurance: home and auto insurance premium payments for eligible customers deferred up to three months, and NSF account penalties eliminated.

Wawanesa: NSF fund fees waived at least until May 25. No cancellation of policies due to non-payment of insurance premiums for the foreseeable future.

Business insurance

- Co-operators: premium adjustment case by case.

- Economical: premium adjustment case by case.

Federated: measures taken case by case.

Intact Assurance: premium adjustments for small and mid-sized businesses that are closed or that have been severely impacted from a sales and payroll perspective; More measures were announced on April 29.

La Capitale: reduction of premiums for contracts in force due to temporary closure or decrease in activities. The insurer also introduced a rider to cover professional activities carried out in the private sector by people authorized under a professional corporation but who are not members.

RSA Canada: fees for NSF cheques after April 1, 2020 will be waived. Payment options are available.

SSQ Insurance: 20% credit applicable on monthly premium for each vehicle insured.

Wawanesa: premium adjustment case by case.

Auto insurance for businesses

- Desjardins Insurance: possible credit of over $250 on auto premium for businesses.

Echelon: reduction in mileage associated with the Individually Rated Commercial Auto (IRCA) policy, for a premium reduction of up to 15%. Removal of all but comprehensive coverage, for a premium reduction of up to 80%, if the vehicle is not in use and is safely stored during the pandemic.

Intact Assurance: premiums adjusted to take into account storage or change in use of a commercial vehicle.

L’Unique General Insurance: 20% reduction on monthly auto insurance premiums of businesses for the duration of the lockdown.

La Capitale General Insurance: 20% reduction on the monthly insurance auto premium calculated automatically using the premium for each month of confinement starting April 1, 2020, until the resumption of business results in more normal traffic flow.

Promutuel Insurance: applicable credit for three months offered on auto insurance premium, calculated based on reduction of use of the vehicle.

Wawanesa: small business policy holders can cancel some driving coverages and reduce their commercial insurance premium.

Other measures

Several insurers mentioned that they are temporarily expanding auto insurance coverage, at no charge, for the use of vehicles to make deliveries to people who need this assistance. This does not apply to those providing a commercial service, like UberEats. Various insurers also took measures applicable to clients in the United States who could not bring their vehicle back to Canada. Insured will cover the vehicle in the US for a period of more than six months.

Several insurers also offered to ease underwriting standards depending on the situation. For example: due to SAAQ closure for transfer of registration, deadlines, recommendations on an inspection report, etc.

Source: Insurers’ websites, GPL Assurance, Protégez-Vous.

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