The second phase of CAA Insurance's COVID-19 rate relief program features a $100 rebate for all active auto policyholders in Ontario whose policies are in effect before May 1. The insurer announced the new measure on May 8.
No action is required by policyholders to receive the benefit. For customers who have paid for their policy in full, they will receive a cheque for $100. For insureds who are on monthly payment program, the relief benefit will be applied to the policy and spread over the remaining unpaid installments. The processing of this relief benefit will take place in June, July, and August.
The company says it is working with regulators in other provinces to explore additional savings.
CAA Insurance initially announced its COVID-19 rate relief program on April 9, with a 10% rate reduction on all home and auto insurance policies in Ontario. It is among several Canadian insurers providing their customers with financial support due to the coronavirus crisis.
New CAA Insurance Ontario customers can tap into the discount as of April 15. Renewing customers will have it applied to their policies on June 15. The reduction for both new and renewing customers applies to a 12-month policy.
"CAA believes that insurance should be based on people's needs, and according to their lifestyle," says Matthew Turack, president, CAA Insurance. "Right now, people are driving less and are focused on reviewing their finances. This rate reduction, combined with other creative ways where CAA Insurance can potentially help find savings, can make a big difference for people when they need it most."
For CAA Insurance policyholders who may have already renewed their policies, the rate reduction can also be added mid-term and applied for the balance of the policy term. Furthermore, the discount will be pro-rated based on the time left on your policy. Contact your broker to inquire about CAA Insurance COVID-19 relief.
CAA says the reduced rates can be combined with additional ways to adjust coverage and payment plans to reflect reduced driving behaviour such as:
- Reducing annual mileage amounts on policies
- Insurance adjustments for multiple cars that aren't being driven
- Enrolling in the CAA MyPace program