Existing and new policyholders eligible for 15% rate reduction.
With the pandemic still affecting the everyday life and well-being of Canadians, CAA Insurance has announced the next round of rate relief for their Ontario auto insurance policyholders. The announcement comes on the one-year anniversary of the province’s first declared state of emergency in response to COVID-19.
Auto insurance policyholders will benefit from a 15% auto insurance rate reduction on a one-year policy. The relief isn’t available to just existing policyholders either; it’s available to new customers too.
The rate relief will be automatically applied to all new customers’ premiums effective April 15, 2021, and existing customers’ auto policies that renew on or after June 15, 2021. For customers with policies that renew between January 1 and June 14, 2021, they can apply for the incremental rate relief online.
"We recognize that people are either driving less or driving differently, and we don't expect this to change in the short-term," says Matthew Turack, president of CAA Insurance, in a press release. "We understand there are many people facing challenges brought on by the pandemic. We believe that insurance companies should step up, give back and help Ontarians manage expenses during the COVID-19 pandemic."
This latest announcement is an enhancement of what was initially expected to happen in 2021. In February, it was reported CAA would maintain the 10% rate relief offered last year.
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CAA Insurance COVID relief measures
Last year, amid the early days of the pandemic, the Financial Services Regulatory Authority (FSRA) identified CAA as leading the charge in how much consumer relief they offered policyholders. It looks like CAA is aiming to do the same this year as well.
- CAA’s $100 Auto Insurance Relief Benefit: Sent to every Ontario driver who had a CAA Insurance auto insurance policy in effect before May 1, 2020. Policyholders received their $100 relief payment in the summer of 2020.
- CAA’s 10% Home and Auto Rate Reduction: The 2020 rate reduction, originally announced at the beginning of the first wave of the pandemic, was available to new and existing clients and was valid for the duration of a 12-month policy term.
- CAA’s $50 Auto Insurance Relief Benefit: Sent to every Ontario driver who had a CAA Insurance auto insurance policy in effect as of October 28, 2020. Policyholders received their $50 relief payment before the end of the year.
CAA estimates that the total amount of pandemic relief they’ve offered their home insurance and auto policy customers during 2020 and 2021 is over $130 million.