June 18, 2020

What are Insurance companies doing about COVID-19?

What’s the deal?

On April 16, the Ontario government announced they will allow insurance companies to provide temporary rebates to drivers during the COVID-19 pandemic. This means insurance companies can introduce measures (like like payment deferrals, premium adjustments or the waiving of missed payment fees) to help ease the financial pressure on working people and families during this public health crisis.

As a consumer who might be experiencing lifestyle changes during COVID-19, it’s best to review your circumstances and reach out to your insurance specialist to see if you can be provided with financial relief in any way. Below, we’ve outlined that best ways to navigate this global crisis in terms of insurance.

Review your lifestyle and your policy coverages. You can ask yourself;

  1. Have you been laid off due to COVID-19 and are concerned about making your next payment?
  2. Have you experienced lifestyle changes that have affected your commuting distance?
  3. Do you own a company that has started to produce materials (face masks, hand sanitizer, etc.) for the fight against COVID-19?
  4. Have you started using your vehicle for a different purpose, such as delivery service, during the COVID-19 pandemic?

How are insurance companies helping?

Insurance companies are taking different approaches to COVID-19 assistance. That’s why a Broker is your best ally. Brokers have a library of reputable information directly from insurance companies outlining the actions being taken during COVID-19.

Some examples of actions being taken by insurance companies:

  • Some have adjusted premiums to align with decreased vehicle usage;
  • Some have introduced coverage reduction for vehicles no longer in use (if you have a vehicle no longer in use due to COVID-19, you can request to remove all but comprehensive coverage as long as your vehicle is safely parked and stored;
  • Some are allowing total kilometers per year to be amended mid-term, and offering an average reduction in premium of up to 15%;
  • Others are offering flexible coverage options to customers who have been using their vehicles for different purposes during this crisis;
  • And others are reviewing policies on a case by case basis

Basically, there are many scenarios for many different companies, all choosing to support their clients in different ways.

How do you navigate it all?

Reach out to us. We can compare your lifestyle changes to the coverage you have in place, and make adjustments as needed. If this means shopping around for another company, we will do that for you. We do the legwork to find you the best insurance coverage at the right price and we are consistently reviewing our clients’ policies to amend them for their changing lifestyles.

The bottom line is, insurance companies are here to help, and we’re here to support you, help you navigate it all, and find the best insurance to adequately protect you at all stages and circumstances throughout your life.


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