Auto insurers save hundreds of millions of dollars during pandemic, report says

While the COVID-19 crisis did not hit Atlantic Canada like many other Canadian provinces, it still had countless impacts.

Many people throughout the pandemic have worked from home, resulting in a drastic reduction in the number of vehicles on the road, especially in urban centers.

This resulted in fewer accidents, according to Alexandre Desoutter, communications specialist at Hellosafe, a France-based company that specializes in insurance analysis and has grown in England and Canada.

“We have seen a sharp decrease in claims across Canada,” he said.

Hellosafe said he estimated the savings on payments from auto insurance companies in the Atlantic Provinces at $ 328,609,166 in 2020 due to COVID-19 restrictions as most drivers stayed home for much of the year.

The company said it based its study on public information provided by reliable data providers and several insurance partners who anonymously provided Hellosafe with information about the claims.

Hellosafe said drivers deserve a big discount on their insurance rates.

“It’s just that people see reality,” Desoutter said. “Maybe the insurance industry will make reforms and some companies have already done so.”

More than 20 insurance companies have filed applications with the Nova Scotia Utilities and Review Board for rate reductions. (Paul Palmer / CBC)

More than 20 insurance companies have applied to the Nova Scotia Utilities and Review Board for rate reductions due to COVID-19. All of them have been approved.

“Many clients will have seen the relief offered in different ways,” said Amanda Dean, Atlantic Region Vice President for the Insurance Bureau of Canada. “Some insurers offered credit on accounts while others immediately paid back money.”

But Dean said these relief measures have been suspended in many cases as more people return to work and now drive their vehicles more often.

“It is always up to the consumer to contact their insurance representative,” Dean said. “If your situation is still different and you are not driving as much as you did before, call anyway to make sure they have your most accurate and up-to-date information on your use. of your vehicle. “

Dean said she couldn’t comment on the Hellosafe report as she didn’t know where the company got their numbers from.

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