54% of Canadian Drivers Aged 55+ Affected Financially by Pandemic
One in four say they received relief programs from their insurers during COVID-19
What type of financial relief does your home or auto insurance provider offer you during the COVID-19 pandemic? Since the start of the country-wide lockdown, the measures introduced by the insurance companies to help their policyholders differ greatly. Some insurers cut cheques, some cut rates, while others are waiving fees and offering flexible payment options. It’s probably safe to say the COVID-19 financial relief measures are as varied as the number of insurers there are in the country.
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A recent InsuranceHotline.com survey found that, overall, one in four Canadian policyholders were offered rate relief from their auto insurer. This finding is uniformly consistent for drivers under the age of 55 as well as those 55 and older. The survey also found that 54% of those 55+ say the pandemic has financially impacted them compared to 48% of their younger counterparts.
With this latter finding, it’s important for drivers of all ages, but especially those 55 or older to ensure that the “I’s are dotted and the T’s crossed” to ensure they’re not spending more than necessary on auto insurance.
Yet, the survey also found that the 55 and older crowd are oddly planning to stay true to their current provider:
- Just 33% said they were motivated to shop around when their policy comes up for renewal compared to 43% of the under 55 demographic
This final finding highlights a disconnect. The truth is, now is not the time to leave money – your money – on the table. Auto insurance may be a necessity to get around but there’s no good reason to overpay for it. What’s more, shopping around and purchasing coverage can all be done easily online and contactless.
When it comes to switching providers, some people might also worry about losing their loyalty discount. Don’t. While loyalty to your insurer may result in an auto insurance discount, it’s important not to overestimate the value of the loyalty discount your provider offers. Loyalty discounts can mean lower car insurance rates, but it doesn’t mean that it’s the best rate out there -- it’s just the best rate your insurer can offer you at the present time.
Auto Insurance Guide to Saving Money During (and After) the Pandemic
Money is tight these days, for everyone. But the survey results suggest it may be even tighter for auto insurance policyholders nearing the end of their working career or who are already retired. Here are a few ways to try to loosen the resulting financial grip:
- Every insurer’s response to the pandemic has been different. Find out what your provider is doing and what others are offering with our COVID-19 Car Insurance Rebate/Reduced Premium Calculator.
- Talk to your insurer about putting your coverage on hold if you’ve decided to stop driving until the pandemic passes. If your car is gathering dust while parked and stored there are significant savings to be had.
- Call your provider and ask them how they can help you lower your premium today beyond what they’re doing for the pandemic:
- Is there a mature driver discount?
- What about an alumni discount or group discount for your workplace or profession?
- Are your deductibles set to the right amount for your circumstances and comfort level?
- Do you still need all of the coverages currently listed on your policy?
Review your policy with them and ask a lot of questions to find out if your current provider is earning your loyalty.
- If you’ve never thought to shop online for auto insurance, now is the time, because there’s no need for you to get within six feet of anyone to find your cheapest car insurance rate. In less time than it takes to brew yourself a tea or coffee, you can compare your rate to the best auto insurance rates available from more than 30 providers.
Not everyone grew up with a mobile device in their hand and the internet at their fingertips, but the COVID-19 pandemic has shown us how much we can do online when we might otherwise have not thought it necessary. From ordering groceries for delivery or curbside pick-up to banking, paying bills, and saving on auto insurance, there’s no better way to maintain a socially responsible distance than by shopping online.