Alix Digout – April 2020
By now, everyone has heard the phrase “Stay The Blazes Home!”, made popular by Nova Scotia Premier, Stephen McNeil, and for good reason. With many Nova Scotians heeding Premier McNeil’s warning by working from home and limiting any non-essential travel for work and leisure, what impact is this having on automobile insurance premiums? The current social distancing measures and travel restrictions have undoubtedly had a positive impact on lessening the number of motor vehicle collisions in the province.
The Insurance Bureau of Canada’s April 8, 2020 press release confirms several insurers are offering a decrease in automobile insurance premiums to reflect the reduction in vehicle use and corresponding risk. ICB President and CEO, Don Forgeron acknowledges:
“This is an incredibly challenging and uncertain time for many Canadians, and insurers want to help alleviate some of the financial burden for the most vulnerable. Insurers understand that many drivers are no longer commuting or using their vehicle as regularly, which could result in savings”.
ICB states the reductions could amount to a $600 million dollar savings for consumers and are slated to continue for the next three months (90 days).
Various insurers have outlined their own COVID-19 updates and compensation schemes on their websites, including premium reductions (various percentages based on eligibility), deferral of payments, and waiving NSF fees for those experiencing financial hardship during this difficult and unprecedented time.
It is important to contact your insurer directly to determine whether you are eligible for reductions and to discuss any impact this, or COVID-19 in general, may have on your insurance policies.