Updated: Apr 17, 2020
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As cars are being used less and household budgets tighten, Ontario drivers may have a new way to save money on their car insurance.
The Ontario government announced that it is enabling auto insurance companies to provide temporary insurance premium rebates to drivers during the COVID-19 pandemic. The province has amended a regulation under the Insurance Act to help ease the financial pressure on working people and families during this public health crisis.
"We are in an unprecedented time and people are experiencing extraordinary financial pressures," said Rod Phillips, Minister of Finance. "My message to insurance companies has been clear: they should provide relief that reflects the financial hardships their dedicated customers are facing due to the COVID-19 outbreak."
By amending this regulation insurance companies would be able to provide auto insurance premium rebates to consumers for up to 12 months after the declared emergency has ended.
"All of us will remember how companies treat us during these unprecedented times. I often remind business leaders that their customers from the past five years are likely to be their customers for the next five years," said Phillips. "Insurance companies indicated that the regulation preventing rebates was a barrier to providing relief to their customers. That barrier has now been removed so auto insurance companies can step up and do the right thing for the people and families of Ontario."
The Government and the Financial Services Regulatory Authority of Ontario (FSRA) will continue to work together to monitor how the auto insurance sector is responding.