By now you may have heard that some Canadian auto insurers are promising relief for qualifying customers who are struggling amid the COVID-19 pandemic. Rest assured, as your broker, we are working with all of our carriers to understand their recent changes and determine how to best respond to your individual needs.
What you need to know
It’s important to know there is no across-the-board reduction of auto insurance rates in the industry. Rather, some insurers have come out with details of their own programs. There are many factors to consider when determining the impact of these programs on your own auto insurance policy, including:
- How have your driving habits changed? Many people are currently driving less. Please keep in mind though, that if you are no longer driving to work, any potential savings will be based on the length of your typical commute. Therefore, your savings may be minimal and, on average, can range anywhere between $3 to $50 per year.
- What changes do you want to make to your policy? There are several ways your auto policy can be amended:
- Amend the use of your vehicle to pleasure. This removes coverage for a daily commute to work and is based on driving less than a specified number of kilometers a year. Your premium will be prorated for the time you are no longer commuting to work. Therefore, once you resume your normal work and commute practices, you will need to contact AGR to adjust your policy and your premiums will be adjusted accordingly.
- Delete all coverage on your vehicle except comprehensive. Comprehensive coverage is an optional coverage that is usually included on an auto policy because it provides protection from a variety of different risks including fire, theft, vandalism and other damage to your car. Removing all coverage except comprehensive means that you will no longer be able to drive your vehicle. If you only have one vehicle, you will also be required to maintain Accidents Benefits coverage to protect yourself against bodily injury. If you have more than one vehicle, you may delete all coverage including Accidents Benefits, except comprehensive. If your vehicle is leased or has a loan against it, we require permission from the lessor or financial institution in order to delete coverages.
It is your responsibility to update us when any change occurs. We recognize that we are all learning to adapt in these uncertain times. If you choose to amend your auto policy, it is your responsibility to contact an AGR broker if and when your driving habits change. We can then work with you to ensure you have the right coverage for your needs. If your coverage does not match your driving habits, there is risk that your claim could be denied.
We are here to help
As your broker, we’re here to work with you to answer your questions and review your unique situation. If you would like one of our brokers to reach out to you, please do the following:
- Email firstname.lastname@example.org if in Ontario or email@example.com if you are in Quebec
- Provide your full name and auto policy number
- Provide details of your personal situation including change in driving habits, and any amendment you are interested in making to your policy.
One of our AGR broker team members will get back to you within 10 business days. Alternatively, you may call us at 1.800.668.0250, however, please know that we are currently experiencing significant wait times as we review each members’ unique needs. Therefore, at this time, we strongly encourage all members to reach out to us by email.
Please also continue to visit our website for up to date information.
Stay safe and healthy.
Your AGR Insurance Brokers’ Team