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COVID-19 and Your Auto Insurance Costs

Posted by Lisa Ivan Thursday, September 19, 2019

Find out what your specific insurer is offering.

To keep you informed and up-to-date on the impact that COVID-19 has had on your auto insurance, Marsh’s Private Client Services (PCS) is providing information on what specific insurers are willing to do to help support you during these uncertain times.

Guidance regarding insurance initiatives is available online for the following insurers:

Aviva Canada (including Traders General Insurance Company)

Premium reductions based on usage

  • Customers who have stopped driving entirely can reduce their auto insurance premiums by up to 75% by applying Aviva’s new #StayHome endorsement.
  • Starting today, customers who notify Marsh that they’re driving less than before will see a temporary minimum rate reduction of approximately 15% per vehicle. This is an extension of Aviva’s previous announcement where they were offering a rate reduction of up to 15%. Please note – in Alberta, customers currently rated on the Grid Rating System may not receive reductions as high as 15%.
  • Aviva is also removing the requirement for customers who have already informed Marsh that they’re driving less to again notify us when driving habits return to normal. Instead, Aviva will apply the rate reduction for 90 days automatically for changes reported prior to June 15, 2020. Aviva’s previously announced end date of May 31, 2020 is now extended to June 15, 2020 for Ontario customers.
  • This rate reduction is available for all qualifying private passenger vehicles where the customer is driving fewer kilometers and operating their vehicle for pleasure use only or commuting to or from work. This is regardless if you were rated for pleasure use or rated for commuting for all driving classes (including principal drivers under the age of 25). The rate reductions will be directly related to the overall reduction in the vehicle use. Larger reductions in vehicle use will result in larger premium reductions.
  • These changes, already in effect in Ontario, will apply to all provinces and territories across Canada.
  • In addition, any personal vehicles being used to deliver food and medical supplies during this time will be covered under Aviva Canada personal auto policies. There will be no impact on coverage or changes to premiums, whether or not the driver is a volunteer or paid employee.

Aviva Price Promise

  • Aviva is freezing any premium increases at renewal, meaning customers will keep the same auto insurance premiums for their next 12-month policy term, until further notice.

For more information, please visit the Aviva website.

COVID-19 update - customer relief measures

All provinces and territories across Canada

Applicable to personal insurance, Lifestyle, Ovation® and SME insurance (property & casualty and auto)

It has been more than three months since COVID-19 first emerged in Canada. Back in March, we acted swiftly to provide much-needed relief to customers and have been rolling out additional relief measures ever since. Thank you for your continued patience and support during this unprecedented time, as well as for the exceptional service you’ve been providing to customers.

We wanted to provide you with an update on the COVID-19 relief measures we previously announced. These measures were put in place temporarily to help customers impacted by the COVID-19 pandemic. As provinces start to re-open and the Declaration of Emergency wordings included with our policies begin to expire, we’ll be returning to our business as usual processes in pricing, underwriting and billing. This bulletin contains what you need to know to ensure a smooth transition for your customers. As we all work to return to normal, we remain committed to helping you and your customers.
 
NSF fees, cancellations and payment deferrals
To take some of the burden off customers who are trying to catch up on payments, we’ll continue to waive NSF fees until further notice.
 
As of July 1, 2020, we’ll start processing the cancellations for non-payment of premium that were temporarily suspended because of COVID-19. In addition, we’ll resume cancelling property policies for underwriting reasons that were temporarily suspended because the Declaration of Emergency wording was in effect.
 
As part of this process, this week we’ll start contacting personal insurance customers through billing reminder letters if they are:

  1. On an annual payment plan and are past due on their payment
  2. On a monthly payment plan and their payment source is no longer valid
  3. On a monthly payment plan and had a non-payment cancellation pending when we suspended cancellations

The letter will inform them of their outstanding balance and let them know that they have until July 3, 2020 to make a payment. Failure to make a payment may result in a notice of policy cancellation being sent for non-payment of premium.
 
To assist you, your Business Development representative will provide you with a list of both personal and commercial insurance customers who are facing cancellation for non-payment of premium so that you can reach out to them proactively to ensure they bring their account up-to-date. This process does not apply to customers who have pre-arranged deferral payment plans with us already and have kept up with their revised payment schedules.
 
As of July 1, 2020, we’ll be making changes to our payment deferral process in relation to COVID-19. We’ll only be allowing new deferral requests for customers who are up-to-date on their payments. If a customer previously worked with us on a payment deferral plan during the COVID-19 pandemic and is not able to bring their account up-to-date, please contact our billing team at billing.canada@aviva.com. We have a number of solutions available to help on a case-by-case basis.
 
Aviva Price Promise: personal auto
In April, as part of the ‘Aviva Price Promise’, we announced that customers renewing on or after June 15, 2020 would not see an increase to their personal auto insurance premiums (excluding customers who have had losses or traffic violation activity). For customers renewing on or after September 15, 2020, the Aviva Price Promise will no longer be applied, but in its place, we’ll be introducing a maximum 15% cap across the country (excluding customers who have had losses or traffic violation activity). Provinces that had a cap lower than 15% before the Aviva Price Promise took effect will revert back to that level. This will apply to policies underwritten by Aviva Insurance Company of Canada, Traders General Insurance Company, Scottish & York Insurance Co. Limited and S&Y Insurance Company (in Newfoundland & Labrador only).
 
For Lifestyle products across all of our underwriting entities (including Elite Insurance Company), we’ll be returning back to pre-COVID 19 premium capping levels, the vast majority of which were below 15% and vary by product and province.
 
Exception for customers delivering food and medical supplies: personal auto
In mid-April, we announced a temporary exception for customers using their vehicles to deliver food and/or medical supplies for compensation during the COVID-19 pandemic. As of July 1, 2020, this exception will expire. Your Business Development representative will provide you with a list of customers who are likely to be impacted by this change, so you can follow up with them to see if they’re still using their vehicle for these purposes. If they aren’t, please note their account accordingly. If they are and will continue to use their vehicles for deliveries, we’ll provide you with up to 30 days to find another insurance solution for your customer and we’ll allow a pro-rata cancellation to support your remarketing effort.
 
Vacant or unoccupied premises: SME
We previously announced the period for vacant or unoccupied premises as a result of COVID-19 related civil authority-mandated shutdown, was extended for a period of up to 90 days. Starting July 1, 2020, we’ll be returning to standard underwriting processes and wordings for vacant and unoccupied premises. Customers that were previously approved for this extension will continue to benefit from it until the 90 day allowance expires, recognizing that the 90 day extension may go beyond July 1, 2020.   
 
Minimum new business premium: SME
During the COVID-19 pandemic, we implemented a $5,000 minimum new business premium for SME policies. Effective immediately, we are lowering this to $2,500. 
 
Thank you
We realize that we’ve rolled out a lot of changes over the last few months. To make it as easy as possible for you to monitor these changes, when they took effect and when they’re set to expire, we’ve created this chart in the COVID-19 updates section of Aviva Partner. Please check this page regularly as it will be updated.  
 
In the next few weeks, we’ll be announcing more changes to our COVID-19 relief measures for SME and Global, Corporate and Specialty customers.
 
Questions?
If you have questions related to COVID-19 or a vulnerable customer, please email CA_AvivaCOVIDenquiry@aviva.com. Otherwise, please contact your Broker Operations Specialist or your Broker Relationship Manager. Thank you for your continued support and business.

Economical Insurance Company

Enhanced Annual Kilometers Discount

If you are driving less and would like to reduce your annual kilometers, a maximum discount of 15% may apply up to June 30, 2020, and may be backdated to a maximum of 30 days. Customers who reported reduced annual kms after the emergency declaration can also take advantage of the new discount, backdated to April 1, 2020.

Relief for Renewal Rate Increases

Economical is pleased to offer additional premium relief to customers who have personal property or automobile policies renewing between April 1 and June 30.  Economical have advised that policies renewing between April 1 and June 30 will have rate increases capped at 10%. Many insurance companies have filed and received approval for rate increases in 2020. 

For more information, visit the Economical website.

Intact Insurance Company, Novex Insurance Company, and Jevco Insurance Company

Intact companies are offering a 15% savings, on average, to personal auto premiums for three months to customers that have changed their driving habits. Intact only customers can use the online form to apply for this reduction.

Intact/Novex existing customers may also use their personal vehicles for the purpose of delivering food and other products (including delivery services for restaurants, DoorDash, Skip the Dishes, etc.), at no additional charge to customers. Customers simply need to notify Marsh that they are using their personal vehicle to deliver food or products. These flexible measures were applied nationally and will be in place up until and including June 30, 2020.

Receive savings up to 75% per month on average, for those who park, lock, and safely store the vehicle on their property, until they start driving again.

For more information, visit the Intact/Novex website.

RSA Canada

Changing driving patterns, changing premiums

Fewer vehicles on the road means fewer accidents — and fewer claims. RSA is passing on the savings to their customers, with reduced auto insurance premiums to align with current driving behaviour.

Delivery drivers: Helping everyday heroes

Auto customers using their insured vehicles to deliver groceries, meals, pharmacy goods or other essential items will be covered by their existing policies with no changes to their premiums.

Stay Home Stay Covered

Customers required by their employers to work from home will not have their RSA residential coverage affected.

Customers affected financially by the pandemic can contact Marsh to request a payment deferral.

For more information, visit the RSA website.

Travelers

The Stay-at-Home Auto Premium Credit Program provides a 25% credit on one month’s premium to our Canadian personal auto insurance customers, reflective of the decreased driving and auto claims we are seeing in April and which we anticipate will continue into May. Travelers Canada will automatically credit customers’ accounts, providing them with prompt and much needed relief during this time. Customers who have already paid their account in full, either directly or by broker billing, will receive a mailed cheque. For most policyholders who pay monthly, credit processing will start in May and be applied to their next instalment.

For more information, please visit the Travelers website.

If you require more information or assistance, please contact Marsh’s Private Client Services directly at 1 800 265 2196 or my.policy@marsh.com.

 

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.

Related to:  Individuals , Group Programs

Lisa Ivan

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Rising Personal Insurance Costs

Posted by Lisa Ivan Thursday, September 19, 2019