COVID-19: How insurance companies are supporting those who have been affected financially

The COVID-19 pandemic has led to financial struggles for many Canadians across the country. Whether you’ve been laid off from your job or you’re an hourly worker whose shifts have been reduced — or if the pandemic has affected your finances for another reason — you might be having a hard time staying on top of your bills right now, including your insurance premiums. Insurance companies understand, and we’re taking measures to support those who are facing tough financial situations as a result of the pandemic. The Insurance Bureau of Canada announced this is an external link that its member companies will take the following measures to support their customers:

Weather you have been laid off or your business is slowing down or your shifts has been reduced which may cause a financial Hardship and you may have a hard time paying bills, including your insurance premiums. Insurance companies do understand your financial situation and the companies are taking measures to support those who are facing tough financial situations as a result of the pandemic. The Insurance Bureau of Canada announced that its member companies will take the following measures to support their customers:

Drivers whose habits have changed may qualify for reduced car insurance premiums.

If your driving habits have changed because of the pandemic, (for example not commuting to work, or one of your vehicles is not in use) your insurer could reassess your coverage needs and reduce your premium to reflect that change.

Insurers are deferring premium payments and other flexible payment options for those Canadians and businesses who have been affected financially.

Similar to mortgage payment deferrals, insurance company are deferring insurance premium to people who are facing financial struggles due to COVID-19. Insurers are also looking into other payment options to help those who are able to pay for insurance but need some flexibility

Insurers are waiving their NSF fees for customers who can’t pay their premiums

If you didn’t have sufficient funds in your account to pay your premium, you would end up paying a non-sufficient funds fee to your insurer as a penalty. Due to COVID-19 Insurers are waiving these fees to customers who don’t have sufficient funds in their accounts. While your insurer may waive your NSF fee, you’ll still need to pay the principal amount owing on your account. Your bank still might charge a NSF. Your insurer has no control over this)

If you’re temporarily using your car or home differently because of the pandemic, it won’t affect your premium or coverage

If you’re driving to work instead of taking public transit, or if you’re working from home, this won’t effective the cost of your insurance or stop you from making a claim
If you own a business and you have been affected financially due to COVID-19, there are other solutions available for you which you can discuss with your broker.

Leave Comment

Leave a Reply