The new benefit adds on to the last month's announcement from CAA Insurance of a 10% rate reduction for new and renewing home and auto policies in Ontario
CAA Insurance is introducing a new auto insurance relief benefit. (Credit: CNW Group/CAA Insurance)
Canadian insurance firm CAA Insurance said that it is rolling out a CAD100 ($71.73) auto insurance relief benefit to its Ontario policyholders for all active auto policies in effect prior to 1 May 2020.
The insurance relief has been announced amid the Covid-19 pandemic with the company adding that the insureds or their brokers need not take any action for receiving the benefit.
CAA Insurance earlier announced 10% rate reduction for new and renewing home and auto policies
The new benefit adds on to the last month’s announcement from CAA Insurance of a 10% rate reduction for new and renewing home and auto policies in Ontario. According to the company, the 10% reduction is aimed in particular at reducing premiums during the Covid-19 pandemic.
CAA Insurance president Matthew Turack said: “CAA Insurance continues to explore ways to help consumers save money on their insurance premiums during this difficult time.
“We know that driving distances have reduced, and that Ontarians are looking to reduce their auto insurance costs accordingly. This benefit, coupled with our previously announced 10 per cent rate reduction on home and auto insurance, will provide significant savings for those looking to manage their expenses.”
The Canadian insurer said that its agents and brokers can help customers in finding more ways for adjusting coverage and payment plans in line with the reduced driving behaviour during the Covid-19 outbreak.
The company’s CAA MyPace is one such solution, which offers a pay-as-you-go auto insurance programme for paying for the kilometres driven by the user. Policyholders can also avail a reduction in annual mileage amounts on their policies and insurance adjustments for multiple cars that are not being used.
As per CAA Insurance, customers who shift to CAA MyPace because of a shift in driving habits can decide to return to the usual company’s policy with no fees or penalties once the physical distancing measures enforced due to Covid-19 are over, and also with the potentially increased use of vehicles post-pandemic.