Auto Insurance during COVID-19

Auto Insurance during COVID-19

Now that Alberta has released a framework for reopening of businesses, and provided some expectations for when people can return to work, we are left to plan what this may look like for ourselves. If you have vehicles that are not seeing a lot of use because you are not commuting to work daily, our brokers may have solutions that could save you some money, depending on your insurer.

 

Client: I am not driving my vehicle at all during COVID-19 pandemic. Is there an option to remove road coverages? How do I do this?

  • You can place an SEF 16 Endorsement on your policy.
  • You can suspend liability and collision coverages on your vehicle while not in use. Comprehensive coverage will still be covered as long as the vehicle isn’t being used or operated at any time.When you need to start using your vehicle again, SEF 17 Endorsement should be applied to reinstate coverage. The credit will be applied to your policy immediately, and will be issued when the SEF 17 Endorsement is added. This option is not available for Motor Homes, Motorcycles or Collector Cars.

Client: Can I limit my coverage on one vehicle?

  • If you have another vehicle on the policy that continues to have coverage, you may be able to reduce the coverage to comprehensive only. This means that you will not have any road coverages except comprehensive coverage. If this option is chosen rather than SEF 16 Endorsement, you will need to review with your broker the requirements for comprehensive only and agree to the terms.

Client: I am not driving to my normal daily activities, or using my vehicle for what it is listed for on my policy, can I change any coverages?

  • If you still require use of your vehicle, but are no longer using it to commute to work/school during the pandemic, or are driving significantly fewer kilometers over this period, you may be able to adjust your policy information. For example, if the vehicle is used for business purposes or driving to and from work or school, confirm with your broker on how you’re now using the vehicle and if the vehicle now qualifies for pleasure use, your broker can endorse the policy to reflect this.

If your vehicle is leased or has a lien holder, we can’t reduce to comprehensive only without written confirmation from the lessor or lien holder. It’s a good time to review your auto insurance coverages with your broker and see if you can find some cost saving options.

Please note that you are responsible for calling to reinstate coverage before you drive your vehicle again.