Only 25 per cent of Canadians were offered rate relief from their automobile insurer amid COVID-19, according to an InsuranceHotline.com survey. Sixty-four per cent of respondents said they were not.
Most auto insurers have offered rebates, premium discounts, payment deferrals, or waived non-sufficient fund fees for missing payments. But of the drivers that did receive some relief, only 33 per cent considered the measures helpful while 64 per cent considered it insufficient (or the offer was so small if it was considered insignificant).
“Despite insurance companies rolling out COVID-19 rate relief response programs, it appears that the majority of Canadians are either not aware of their options or did not determine what they were eligible for,” said Anne Marie Thomas, insurance expert at InsuranceHotline.com.
Thomas said drivers need to understand what their options are when it comes to auto insurance, a significant item on a household budget, to help alleviate some of the financial pressure drivers may be feeling amid the pandemic.
Still, approximately two in five Canadians said they are unlikely to shop around during renewal time, suggesting they will stick with their current auto insurer.
“Interestingly, with half of Canadians revealing the pandemic has caused financial hardship, a large percentage of drivers have indicated that they will stick with their current insurer when it comes time to renew,” said Thomas. “If drivers want to get the lowest possible premium or want to find out how insurance companies can help them now’s the time to compare and see where you can get a better deal,” she said.
The survey also revealed that, of the drivers who were offered some form of premium relief by their insurance company, 36 per cent were from Quebec, 30 per cent were from Ontario, 22 per cent were from Alberta, and 19 per cent were from the Prairies. Also, 10 per cent were from Atlantic Canada and 5 per cent were from British Columbia.
Half of the survey respondents indicated they were significantly or somewhat financially impacted by the COVID-19 crisis. And Canadians appear to be split as to whether they will be shopping around for another auto insurance company: 41 per cent are unlikely to do so, and 39 per cent are likely to shop around.
