The coronavirus pandemic has had a significant impact on every single human being and business across the world. While the virus has caused thousands of deaths, it has disrupted the way you live for even more families. This has resulted in a lot of unpredictability regarding the future, considering that nobody had anticipated it. The home and auto insurance companies in Ontario have not been left behind, and we look at the impact of the pandemic on the home and car insurance sectors.
Auto Insurance
Thousands of drivers across Ontario have been forced to spend less time in their vehicles as more and more people are encouraged to work from their homes. Even amid such happenings, car insurance companies throughout Ontario continue to increase their rates. The COVID-19 pandemic’s effect on the insurance sector has affected the deals that find their way to the consumers. In spring, most insurance companies resorted to providing temporary premium difference and discounts to support the pandemic drivers. However, the discounts ended during summer, and most policyholders have received restorations that are higher compared to the previous year. According to an expert, today, rates being witnessed throughout Ontario currently reflect the claims experience and driving running up to the edge of last year.
According to a professor from York University who has been studying the insurance industry for several years, insurance providers have come up with higher premiums than necessary. On average, the overpayments range between 10 and 16%. However, this has been disputed by the IBC, which claims the research is based on highly profitable insurance providers. Apart from this, some insurance companies lose money through auto insurance. On the bright side, the number of insurance claims has dropped significantly this year due to the changing driving habits. This is evident due to the significant reduction in car body repairs this year, and it is attributed to the low number of people commuting to schools and offices.
Home Insurance
There is a sigh of relief for home and auto insurance companies in Ontario since the pandemic has not left any significantly damaged properties that need to be repaired or rebuilt. This is good news, especially for the home insurance industry, where premiums should remain mostly unaffected since the risks and benefits are potentially going to weigh each other out. However, the stay home regulations are a stumbling block since spending more time at home increases the possibility of damages such as house fires and different kinds of accidents. According to numerous reports from home and auto insurance companies in Ontario, close to 2 million people in Canada lost their source of income due to the pandemic, which means that most people are going to try to adapt and cut their bills. There is a growing need to save money, even among those who will still have their jobs.
If you are having trouble making premium payments due to the pandemic’s impact, it can be relieving to know that you are not alone. You can turn to some options, especially now that most home and auto insurance companies in Ontario have resorted to supporting their customers, especially those that have been impacted negatively by the coronavirus. This is far much better than escaping insurance payments as you may end up with no protection at all.
You can also turn to My Insurance Broker to help you find the right level of coverage, potentially saving you a fair amount of money every month. While it is possible to search on your own, it will cost you a large amount of money, especially if you are not familiar with the ins and outs of the insurance industry.