SGI does not yet know how COVID-19 will affect insurance rates. (File Photo/ paNOW Staff)

By Ronald Quaroni

Insurance Coverage

COVID-19 impact on insurance rates unknown

Apr 23, 2020 | 12:47 PM

With more people working from home due to COVID-19, how will Prince Albert residents insurance plans and rates be affected?

In an e-mail to paNOW, SGI explained in the early stages they don’t know what the financial impact of COVID-19 will be to the Auto Fund’s losses and expenses. While collision claims were down in March, the provincial insurer also saw a drop in premium income due to people cancelling or adjusting their registrations.

“To put things into perspective, if one significant hailstorm hits Regina or Moose Jaw this summer, it could easily result in more claims in an hour to make up for the lower number in the entire province over the past month,” SGI Media Manager Tyler McMurchy told paNOW.

He said SGI is encouraging people to contact their broker/issuer and explore all options to reduce premiums for vehicles that are not being driven as much or at all.

McMurchy advised those cancelling a vehicle registration to contact their insurance broker to ensure they have a package policy in place that provides insurance coverage for things like theft, vandalism, etc.

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He added they are carefully monitoring the situation and are considering options for passing on any savings to the people of Saskatchewan.

“SGI’s goal is to continue to provide the people of Saskatchewan with the lowest basic auto insurance rates in all of Canada, now and into the future,” McMurchy wrote.

Ron Wesolowski the owner of Prince Albert Insurance Ltd. said other than social-distancing measures which limits three customers in the office at one time it has been business as usual.

He acknowledged while residents may be working from home, driving is still a big part of people’s lives here.

“The rates will probably not change because our exposure is still there. Not only the driving, but you have to worry about storms, vandalism, theft of cars. Those all still come into play,” Wesolowski told paNOW.

According to Wesolowski the hot topic among customers and the insurance industry is, business interruption insurance.

“You have to have physical loss to claim business interruption, but right now there are movement’s by states and companies. For example; Tony Merchant is doing a class action suit against insurers. So, there’s lots of action in that department right now,” Wesolowski noted.

Moving forward he is hopeful things will get back to normal with the recent announcement of a plan from the provincial government to reopen Saskatchewan.

“Basically, we just hold the line and just move on forward. With the businesses (potentially) opening up, I think we’ll be back to normal very quickly and it really shouldn’t impact anything as far as insurance goes,” Wesolowski said.

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Ron.Quaroni@jpbg.ca

Twitter: @RonaldQuaroni