Auto Insurance: Time to legislate COVID-19 rate cuts

Insurance companies should be legislated to reduce automobile premiums immediately for the vast majority of Canadian drivers who are doing no driving at all, or who are driving significantly less because of the COVID-19 (coronavirus) pandemic, says personal injury lawyer Sivan Tumarkin.

“For years insurers cried that rates had to be increased due to claims fraud,” noted Tumarkin, who is co-founding partner of Samfiru Tumarkin LLP. “Now, when accident claims have significantly diminished and the risk of accidents has been virtually cut to a mere fraction of what it had been just a couple of months ago, Canadians are not seeing a corresponding decrease in their auto premiums. That is not fair and should be dealt with immediately by provincial governments as a way of providing further economic relief to struggling individuals and families.”

Tumarkin’s comments come on the heels of a CBC report that suggests the response by insurance companies differ, with some issuing rebates, others cutting premiums only if coverage is reduced, and even an increase in one case.

“Put simply, if insurers don’t step up and cut premiums in accordance with the reduction of risk now that most vehicles are mostly parked in our driveways, the government should step in and force them to take these premium cutting measures immediately. Otherwise the government is as complicit as insurers in driving our fragile economy into a recession.”