Ontario drivers are eligible to receive nearly $1 billion in car insurance rate relief from insurers due to the COVID-19 pandemic, according to the Financial Services Regulatory Authority (FSRA).
That’s a 45% increase (or more than $300 million) provided by 13 of the largest insurers since May 2020, and is equivalent to 7.1% of total annual auto insurance premiums made available to the 6.6 million drivers in Ontario.
That may be good news for consumers. An InsuranceHotline.com survey in May asked Canadians if the pandemic is affecting their finances, and about half of the survey’s respondents said they are, with 36% saying they are somewhat impacted and 12% significantly impacted.
Insurance companies’ pandemic relief measures vary. They may include rebates, rate reductions, waiving non-sufficient fund fees for nonpayment, risk re-ratings, and premium deferrals.
Of Ontario’s 13 largest insurers, Allstate, Gore Mutual, RSA Canada and TD Insurance say 100% of their auto policy customers are receiving relief initiatives. Many auto policyholders of other large insurers are also receiving relief, including customers of Aviva (96%), CAA (83.4%), The Co-operators (86.9%), Desjardins (91.8%), Economical (82.4%), Intact (89.9%), Northbridge (62.1%), Travelers Canada (96%) and Wawanesa (88%).
According to FSRA, the average savings for 93% of policyholders as of July amounts to $162 per policy, which represents an 8% increase from the $150 of savings per policy that was available to 66% of Ontario drivers in May.
