The Real Skinny!!  What Are Insurance Companies Doing For Our Clients?

By now, many of you are aware of recent updates from the major insurers here in the province.  In these most press recent releases, insurers talk about possible 75% savings and 15% savings on your auto insurance.  While these savings are possible to achieve and the insurers are doing their best to help out during the Covid-19 pandemic, they are not cut and dry.  At Crosbie Job, we want you to get these savings, but it is important to temper expectations.  Not everyone is able to achieve these savings, there are many factors in determining just how much savings individuals can access.

75% – Auto Insurance

So first let’s talk about the big 75% that’s being thrown around in the public and the media.  The big thing to remember here is that you are going to have to park your car and not use it (not even to go for groceries once a week).  So if you use your car even once a week, it’s going to be difficult to get to those savings as the car is still going to be on the road.

If you do not carry full coverage then it is unlikely that you can max out the 75% savings.

As well, if you make payments on your vehicle then you will have to get permission from your lender to reduce your coverages.  Those coverages are usually mandatory in your loan/lease agreements

Additionally, it should be noted that these savings would be on a go-forward basis not on a retroactive basis.  There is no rebate.

15% – Auto Insurance

The next number that is being thrown around in regards to auto insurance is 15%.  Is this going to apply to the majority of people?  Well, that depends upon how you are currently rated by your insurance company.    For example,  if you are already rated for low mileage and pleasure use only (not to and from work) then you are unlikely to experience much savings unless you park your car.

If you drive less now or perhaps you are not driving to and from work then yes there are savings that can be achieved.  We need to have a chat and make sure you are rated appropriately.

If you are unsure, then please give us a quick call and we can let you know.

Declaration of Emergency  – Property Insurance

We have heard this one thrown around a fair bit.   In some property policies, there is an endorsement adding an extension of coverage for 90-120 days.  We really would never want to get down to relying on this endorsement.  First, not every insurer includes this coverage on the policy.  Second, it may be open to interpretation.  It’s best to have a discussion with your broker if you want some clarification.  It’s also important to note that the Declaration of Emergency is not part of an auto policy.

Deferred Premiums

We have had many questions about this as well.  The first thing to note is that every insurer we deal with is indicating they are willing to work with you during these trying times.  But there is no blanket statement on what they are willing to offer.  They are looking at this on a case-by-case basis.  That said if a deferral is agreed to, an insurer is not forgiving a payment or multiple payments, they are just pushing that amount to a future payment (or to be spread over future payments).

So if you are experiencing financial difficulty due to COVID-19, please give us a call and we will work with you and your insurance company to find a solution.

Flexible Payment Arrangements

Just as we have said above, every insurer wants to help our clients overcome financial hardships caused by Covid-19.  They are willing to work with you.  So if this is something that you need to explore, please give us a call.

Rate Increases On Renewal

Many insurers had filed and been granted permission to institute premium increases on renewals.  Many insurers are now indicating that during this turbulent time, that any new premium increases on renewals, will be put on hold.  This is not meant to be a blanket agreement as there may be cases (claims, tickets or a change in risk profile) that you still could see a change in rating.

Waiving of NSF Fees

Most insurers have recognized that COVID-19 is placing a financial strain on people; as such they have indicated that they will waive NSF fees for non-sufficient funds.    While the insurers are waiving their NSF fees, they cannot speak for your bank.  As such, if your bank still charges this fee, then you will be responsible to the bank.

Flexible Coverages

Insurers are recognizing that these are unprecedented times and many people have been asked to change their normal habits; perhaps you now drive your car to work rather than take public transportation, or you are working or running your business out of your home.  In the past, there could be a charge for such a change, but insurers recognize the need to be flexible and they are not charging for this change in behaviour.

We Are Here For You

At Crosbie Job Insurance we recognize this is a difficult time for our clients and we want to be here for you.  If at any point you are uncertain what your options are, please reach out to us.  It is our priority to be there for you and your family during these uncertain times. Unfortunately, we cannot provide blanket statements on how things are being dealt with by insurers, because every insurer is slightly different. So if you need advice, or want to look at your options don’t hesitate to give us a call.  By taking care of each other and looking out for one another, we will overcome this challenge.

Meet the team: For Brokers Across the Island
Ph: 709-726-5414 or 1-800-563-7788
Email: [email protected]