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COVID-19 Insurance Relief Update: Economical Insurance

Hands over home and car

Economical Insurance is enhancing its COVID-19 relief measures for its existing auto insurance customers.

Customers who are driving less can have their annual kilometres amended and receive, on average, up to 15% off their premium until June 30. This discount will be backdated to April 1 and is only available for existing customers. It will be applied immediately following the policy change.

How customers receive the discount depends on their payment plans.

Customers who paid for the policy in full will have the discount applied to the remaining term and will be reimbursed the full amount. Customers with three-pay or monthly plans will have the discount applied to the remaining term of the policy and the reduction will be spread out across the remaining installments.

For Economical customers who are not driving at all, they have the option of suspending coverage on their vehicle to save up to 75% on their premiums. However, suspending coverage on a vehicle means you cannot drive it until you reactivate your policy, since driving without car insurance is illegal in Canada.

Insofar as home and auto policies that are up for renewal between April 1 and June 30, Economical says it is limiting rate increases on renewals to a maximum of 10%. The renewal premium relief will come in the form of a credit to the policy.

Economical is also providing several other measures to assist their customers. These include flexible payment options, deferrals, and waiving non-sufficient fund fees.

“We continue to find ourselves in an uncertain time as the situation with COVID-19 evolves. Through this uncertainty, we want to assure you that we remain steady and available to support you. As we said in our earlier update, insurance is a business built on a promise — to be there when our customers need us the most,” says Tom Reikman, Senior Vice-President and Chief Distribution Officer at Economical. “We believe it is important to do our part to help provide relief for Canadians who are vulnerable or struggling, and we actively support the measures announced by the Insurance Bureau of Canada.”

See what other insurers are offering their customers during the COVID-19 lockdown.