Some P&C insurers offer credits on auto insurance
Some property and casualty insurers are giving their car insurance customers a break during the COVID-19 pandemic as people drive less and there are fewer accidents.
Travelers Canada, for example, is giving its Canadian personal auto insurance customers a 25 per cent credit on one month’s premium as part of its COVID-19 relief efforts.
Travelers to automatically credit accounts
Travelers Canada, the Canadian arm of The Travelers Companies, Inc. will automatically credit customers’ accounts, providing them with some relief during the pandemic. For most customers, processing of this credit is expected to start in May. Travelers Canada will continue to assess the program as more information comes to light about the impact of the COVID-19 crisis on the driving environment and auto claims.
“We’ve seen fewer auto claims in April as Canadians continue to stay home during this challenging time and we expect this to continue into May,” said Heather Masterson, president and CEO of Travelers Canada. “Many are experiencing financial hardships, and we hope our new Stay-at-Home Auto Premium Credit Program provides some measure of relief. We have taken a number of steps to help customers, brokers and communities and will continue to look for ways to support them.”
Echelon to provide relief to those who have cut vehicle usage
Echelon Insurance is also introducing relief measures for private passenger cars and individually rated commercial automobile customers who are choosing to reduce their vehicle usage or refrain from using their vehicles during the pandemic.
"We understand that many customers are doing their part. They are staying home and driving less, resulting in fewer cars on the road," said Robin Joshua, president, Echelon Insurance. "We want to do our part by introducing additional measures to ease the financial burden this crisis has caused, while also recognizing the reduced risk associated with changes in driving behaviour."
Customers can ask their insurance brokers about a premium reduction of up to 15% because of the drop in mileage associated with their policy. They can also ask about having all but comprehensive coverage from their policy removed, for a premium reduction of up to 80%, as long as their vehicle is not in use and is safely parked and stored during the pandemic.
It is also offering clients flexible payment options and waiving missed payment fees.