Frequently Asked Questions – COVID-19

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Last updated on June 30 at 17:10 p.m.

Premium reduction for our auto insurance clients1

Which period does the auto insurance premium reduction apply to?

The reduction applies to the monthly auto insurance premium for each month of the confinement, i.e. from April 1 to June 30, 2020.

Who's eligible for the auto insurance premium reduction?

This reduction applies to all of La Capitale’s personal or commercial auto insurance clients during the confinement period, whether they decreased their mileage or not.1

If you were still driving the same distance during this period, it’s surely because you provided an essential service to the public. In recognition of your sacrifice and essential contribution, we made sure that you can also take advantage of this premium reduction.

By how much will my premium be reduced and how will it be calculated?

The reduction will be equal to 20% of the monthly auto insurance premium and automatically calculated using the premium for each month of confinement, i.e. from April 1 to June 30, 2020. 

What should I do to receive my premium reduction?

No action on your part is required. All the details about how you will receive your reduction are answered in the next question.

When and how will I receive my premium reduction?

The method in which the premium reduction will apply varies according to the method of payment you use to pay your auto insurance premiums. 

  • If you already paid your premium in full, we will send you a cheque in the amount of your reduction starting in mid-July.
  • If you pay your premium through payroll deduction, we will send you a cheque in the amount of your reduction starting in mid-July.
  • If you pay your premiums through preauthorized bank payments, your premium reduction was applied to the payment(s) following each month of confinement. Therefore, for June, i.e. the last month eligible for the reduction, the reduction will be applied on the July payment.

Why did you select June 30 as the last day eligible for a reduction?

The auto insurance premium reduction was initiated to compensate our clients for the decrease in road accidents during the community confinement. In June, the Quebec government allowed individuals and businesses to gradually return to work. This resulted in more normal traffic circulation and therefore, the risk of accidents. That’s why we consider that June is the last month of community confinement eligible for the reduction.

Will my preauthorized bank payments increase later this summer?

In August, the 20% reduction will no longer be deducted from your monthly payments. The amount will increase in relation to the May to July amounts and correspond to your unreduced monthly premium.

On what basis are you concluding that traffic has returned to normal? There isn’t as much traffic on the roads as there was before the confinement.

You’re right, but this is due to the normal decrease in traffic during the summer. In fact, the months of July and August usually see a decrease in traffic because classes end, and it’s also vacation season. The current traffic can therefore be compared to the usual traffic we see in July and August.

I am not using my vehicle as often as I used it to prior to the confinement. Can I continue receiving a reduction on my auto insurance premium?

Yes. 

As of June 30, 2020, if you do not use your vehicle as often as you did prior to the confinement, you can complete the Change of Use of a Motor Vehicle form to update your file. If eligible, your auto insurance premium may be adjusted to reflect your reduced mileage and actual use of the vehicle.

1. The premium reduction applies only to personal or commercial automobile vehicles. It does not apply to leisure vehicles such as motorcycles, mopeds, ATVs, snowmobiles, trailers, motorhomes or watercraft.