The auto insurers are offering reductions to premium amounts to their customers in the wake of Covid-19 pandemic
Insurance Bureau of Canada (IBC) announced that its members companies in Alberta are offering reductions to the tune of CAD100m ($71.4m) in auto insurance premiums to their customers in the wake of Covid-19 pandemic.
The reductions offered in automotive insurance premiums reflect the reduced risk due to a change in driving habits of consumers.
The insurance companies have also called on all stakeholders to work with the government on its automotive insurance review on long-term affordability of the insurance.
In addition, they are working on flexible payment options with the customers including premium deferrals and waiving all Non-Sufficient Funds (NSF) fees.
Insurance Bureau of Canada Western vice-president Celyeste Power said: “There is a long list of things to worry about in Alberta right now and we believe auto insurance shouldn’t be one of them.
“That’s why insurers are offering reductions that could result in over $100 million in savings for Albertans who have changed their driving habits as a result of the pandemic.”
IBC working with the Alberta government to fix automotive insurance system
IBC is now working with the government-appointed Advisory Committee on Auto Insurance and the Government of Alberta to fix automotive insurance system in Alberta.
The insurance bureau expects that the government, working with customers and stakeholders, will make reforms so that the insurance becomes affordable in the long term.
Power continued saying: “IBC calls on all stakeholders involved in the auto insurance system, regardless of their personal interest, to focus on what matters most to Alberta’s 3 million drivers, and that is affordability.
“IBC believes consumers deserve affordable auto insurance with more choice and more care for those who need it. Anyone calling for the status quo is simply not putting the interests of drivers ahead of their own.”
Last December, the government appointed an advisory committee to review the cost and coverage of automotive insurance in Alberta.
IBC is the national insurance industry association in Canada, with member companies across home, auto and business insurers. The members make up 90% of property and casualty insurance market in Canada.