COVID-19 Auto Insurance Relief Measures: Economical Insurance Introduces 15% Rate Reduction

A father and daughter both working from home during the pandemic.

As the COVID-19 pandemic and lockdown continues to force Canadians to stay at home, Economical Insurance has announced it will be giving its auto insurance policyholders an “enhanced annual kilometres discount”. This discount could save customers on average up to 15% off their premium until June 30, 2020.

This measure is an enhancement to one of the relief measures announced originally on April 8, 2020. Originally, the potential amount of rate reduction was not specified.

“Our business has supported customers through world wars, the depression, and other more recent crises, and our commitment remains focused on the customer first through the challenges we are faced with today,” said Rowan Saunders, President and CEO of Economical when the original measures were announced. “We are working collaboratively with our dedicated employees and valued broker partners to bring solutions to customers during a situation that none of us have ever experienced.”

With its latest announcement, Economical is offering its customers the following relief measure options:

  • Flexible payment options, including payment deferrals and waived NSF fees
  • Payment plan adjustments to update the method or frequency of payments
  • Reduction of auto insurance premiums by limiting coverage or reducing the number of annual kilometres driven — our enhanced annual kilometres discount could save customers on average up to 15% off their premium until June 30, 2020
  • For customers taking their car off the road completely, they could save up to 75% on their premium

Finally, the company expects to offer further rate relief to customers whose home insurance and auto insurance policies renew between April 1 and June 30, 2020. Since rates would have been set and the renewals sent out to customers pre-COVID shutdown, Economical Insurance will be limiting the increase implemented (to a maximum of 10%) and applying a credit to the policy for anything above this amount.

The company encourages its customers to connect with their broker, visit the website, or contact a customer service representative to review support currently available to offer relief.

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