Desjardins Offers Auto Insurance Refund to Drivers in Wake of COVID-19

Desjardins General Insurance is offering its auto insurance customers a refund on their premiums. As a result of the nationwide COVID-19 lockdown to help prevent the spread of the coronavirus infection, Desjardins says the refund is designed to support Canadians who are working from home and driving less.

The insurer’s timing is impeccable. Fewer Canadians are on the road because they are working from home, or they are laid off due to the pandemic and may be seeking ways to reduce their monthly expenses, including the cost of car insurance.

The latest Leger survey reveals a staggering 44% of Canadians are experiencing a decrease in their income because of the COVID-19 crisis. The survey also finds 67% of Canadians believe the worst is yet to come.

How Desjardins Customers Can Access the Refund

Even in the best of times, consumers who miss making their monthly car insurance payments face consequences. Desjardins says its refund is for customers whose driving habits have significantly changed from commuting to work to only using their vehicles for essential trips, such as going to a grocery store. The discount is available to all Desjardins customers who are working from home, lost their jobs, or are self-isolating.

The relief measure will be calculated over a three-month period and will reflect a driver’s annual distance travelled on their policies.

Desjardins customers can apply for the rebate through the company’s agent network website, or for drivers who deal directly with the insurer, through its main website. Consumers have until May 31, 2020, to apply for the refund.

Will Other Auto Insurers Offer Coronavirus Discounts?

Many other insurers are also offering their customers who are experiencing financial hardship support by way of payment deferrals, adjustments to their premiums, and waiving any non-sufficient fund (NSF) fees if they missed a payment.

Intact, belairdirect, Wawanesa, CAA, The Co-operators, and TD Insurance have all come forward in recent days offering financial relief to their respective customers. Some insurers are considering payment deferrals on a case-by-case basis or allowing their customers to suspend their car insurance temporarily.

Other insurers, like Allstate Canada, are offering their customers a one-time payment of approximately 25% on their auto premiums, or La Capitale Insurance, which is providing a 20% rebate on auto premiums for their customers until the COVID-19 confinement period ends.

Meanwhile, and in addition to these measures, insurers like CAA, are also encouraging their customers to sign up for what’s known as “pay-as-you-go” insurance and only pay for the distances you drive. Once the COVID-19 lockdown ends and your driving activity returns to normal, you will need to switch your auto policy back to its original classification.

Regardless, if you have concerns about paying your auto insurance bill on time, immediately contact your insurance provider or broker to discuss your challenges and find out how they may be able to assist you.

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