The recent news about Aviva Insurance leaving Edmonton has sparked concerns among policyholders. What will happen to their insurance coverage?
If you’re currently insured with Aviva, understanding the implications of their departure is important to understand how this situation will impact your policy.
Let’s take a look at why Aviva is leaving, how this will impact their current clients, and how our Edmonton insurance brokers can help you stay covered:
Why is Aviva Insurance Leaving Edmonton?
Aviva Insurance’s decision to leave Edmonton was largely driven by the unprofitability of the auto insurance sector in Alberta.
Despite recent rate increases, the costs associated with lawsuits, repairs, and rising auto thefts have made it difficult for insurance companies to maintain profitability.
The challenges faced by Aviva show the broader issues within the auto insurance market in Alberta – rising costs have outpaced the rate increases meant to offset them.
Aviva’s departure also signals a potential trend that could see more insurance companies reconsidering their presence in the region if these financial pressures are not alleviated.
Is There a Direct Impact on ARC Insurance’s Clients?
There is good news for our clients at ARC Insurance – you will not experience any direct impact of this change.
Aviva Direct and Sonnet are separate entities from Aviva and will continue to operate independently. This means that policies held with Aviva Direct and Sonnet will not be affected by Aviva’s decision to leave Edmonton.
Policies sold through brokers, such as Economical/Definity insurance, also remain unaffected by this change.
For ARC Insurance clients, your current policies will be maintained without disruption, so there is no need to worry about Aviva’s exit. ARC Insurance continues to support its clients with the same level of service and coverage.
Potential Effects on Policyholders
Those who are currently insured by Aviva Insurance may end up facing several challenges. Let’s take a look at what you need to know to maintain continuous coverage and avoid disruptions:
Policy Cancellation or Non-Renewal
Clients insured with Aviva may face policy cancellations or non-renewals. Insurance companies are generally required to provide notice to policyholders, ranging from 30 to 90 days. This notice period is provided so clients can make necessary arrangements to secure new coverage. It’s important to act quickly once a notice is received to prevent any gaps in coverage.
Finding Alternative Coverage
Seeking alternative insurance coverage involves researching and choosing a new insurance carrier that operates in your region and offers suitable auto insurance policies. Comparing coverage options, premiums, deductibles, and customer reviews can help you find the best alternative. The challenge here is to find a policy that matches what you had and remains affordable.
Transfer of Coverage
It’s possible that Aviva may have agreements with other insurers to transfer policies automatically to provide continuous coverage for clients. Check with your current insurer to see if such arrangements exist. These agreements can simplify the transition process, but you need to confirm the details and make sure the new coverage meets your needs.
Regulatory Support
Insurance departments typically oversee carriers and provide guidance to affected clients. They can help you understand your rights, obligations, and available options during this transition. Regulatory bodies may also offer resources or assistance in finding new coverage.
Steps for Affected Clients
If you are affected by Aviva leaving Edmonton, there are several steps you should take to make sure you maintain the necessary coverage:
Contact Current Insurance Carrier
The first step is to reach out to your current insurer to confirm the status of your policy and understand the timeline for any changs. It’s important to get clear information on when your current coverage will end and what steps you need to take to maintain continuous protection.
Research Alternative Insurance Providers
Begin researching other insurance carriers that offer auto insurance in your region. Speaking to an Edmonton insurance broker can help you identify alternative options. Start this process as soon as possible to give yourself enough time to compare different policies and avoid last-minute decisions.
Compare Coverage and Costs
Compare different insurance policies to make sure they meet your needs when it comes to coverage limits, deductibles, and any additional features or discounts. Be sure to balance cost with coverage quality so you don’t sacrifice important protections for a lower premium.
Review Provincial Insurance Guidance
Check the website of your provincial insurance department for specific guidance or regulations related to the exit of insurance carriers from the market. These resources can provide valuable information on your rights and help you through the transition.
Act Quickly
Given the timelines involved, it’s important to act quickly to secure alternative coverage before your current policy with Aviva expires or is terminated. Putting this off may result in a lapse of coverage, which can be risky and costly if you are in an accident.
Implications for the Auto Insurance Market in Alberta
The exit of Aviva from Edmonton highlights the challenges insurers are facing when it comes to remaining profitable. The rising costs of lawsuits, repairs, and replacements have placed significant pressure on insurance companies, leading to difficult decisions like Aviva’s departure.
This situation raises long-term concerns and the potential for more companies to leave if the underlying issues are not addressed. If more insurers leave the market, it could lead to decreased competition.
So, what can be done to keep premiums affordable for Edmontonians? Regulatory and industry action needs to address these problems and stabilize the market.
Until then, ARC Insurance is always here to offer you competitive and complete coverage for your insurance needs.
Make Sure You’re Covered with ARC Insurance Brokers
Maintaining adequate auto insurance coverage is crucial, and we are here to help you every step of the way.
If you are affected by Aviva’s departure, please reach out. Our team at ARC Insurance can help you prepare for potential changes and answer any questions you may have.
