Due to the coronavirus, Rod Phillips, the Finance Minister of Ontario, has eliminated legal restrictions that now allows auto insurance companies to provide temporary rebates to drivers across the province.
This decision comes after the Ontario government amended a regulation under the Insurance Act to help ease the financial strain being put on working individuals and families during this deadly pandemic.
By amending this regulation, insurance companies will be able to offer auto insurance rebates to consumers for a 12-month time period after COVID-19 comes to an end.
Rod Phillips hopes that the auto insurers will step up and do what is right at the end of the day.
Ontario is the first province in Canada to remove existing legal restrictions on rebates so auto insurance companies can provide some additional relief to motorists.
Such prohibitions are designed to protect Ontario drivers from being misled in purchasing decisions because of a rebate and to provide protection to consumers from insurance companies who could potentially discriminate against them.
Several auto insurers have started to lower their rates for consumers since many people are not using their vehicles as often. Intact has provided $40 million in relief due to financial hardships and changes in driving habits since the pandemic hit the province.
The insurance company is currently waiving missed payment fees, is offering a 15 percent reduction on premiums for three months and is also planning on providing $150 million in rebates by the end of June.