For Our Clients: COVID-19 Impacts on Car Insurance

Published April 14, 2020

Car Insurance

COVID-19 has broadly impacted society and our community. One significant change is that many people are working from home or have significantly reduced the amount they drive. In response, the insurance industry is doing its part to help drivers with some relief on their car insurance premiums.

Unfortunately, there is no national program or single solution, therefore it is up to each insurance provider. Strum Insurance is working with our insurance providers to determine what options are being made available. As we receive this information it is clear there will be differences between how each insurance provider handles this situation. For example, some are offering a discount that can be added by request and others are automatically providing reductions on your premium.

At this time, here’s what we can share. How you can reduce your car insurance premiums will depend on your unique situation.

What if I am NO longer driving my car due to COVID-19?

By no longer driving your car, that means zero use of your car. In this case, we can remove coverage from the vehicle which will generate a credit on your insurance premium. The credit amount can vary depending on how many months you are into your insurance term. If you request this credit, you MUST call your Insurance Advisor to reinstate coverage before you drive your vehicle.  If not, you could suffer an uninsured loss.

Also, when reducing your insurance coverage, you should maintain comprehensive coverage.  This will protect your vehicle against theft, fire or vandalism while your vehicle is parked. NOTE* There would be NO coverage for a Hit and Run.

What if I still need to use my car, but I am NO longer commuting to work or school?

In this instance, we can amend the usage of your vehicle to reflect your current driving needs. Changing your car usage will reduce the overall premium amount paid. The credit amount will depend on your renewal date and the previous usage of your vehicle. Please note, that when you add coverage back to your vehicle there will be an additional charge.  When you return to your normal commuting needs, you must contact your Insurance Advisor.

How will I know if I automatically receive a credit on my insurance premium?

This is a dynamic situation, and at this time we have not yet heard from all of our insurance providers as to how they will apply credits. We expect the processing time, due to sheer volume of changes, will be 30 days.

Like many businesses and industries in Canada, health directives due to COVID-19 are having a significant impact. Of course, insurance is no different. It is a dynamic situation and information is coming in on a daily basis. Our Strum Insurance Team is working hard to understand all the options and do our very best to help our customers stay well protected.

If you have any questions, or to discuss your car insurance policy, please contact our Strum Insurance Advisors by calling us at 1-888-798-2281 or email