Three GAA services to promote access to auto insurance
One of the mandates of Groupement des assureurs automobiles (GAA) is to guarantee access to auto insurance, including making sure that vehicle owners comply with the Automobile Insurance Act, which requires a minimum of $50,000 in civil liability coverage (for a private passenger vehicle). Here are some of the mechanisms the organization uses to fulfill this role and, where possible, to promote purchasing more comprehensive coverage.
1) Help from the GAA Information Centre
Individuals and businesses who are having difficulties finding auto insurance can contact the Insurance Information Centre. The Centre will act quickly to ensure that every driver has the minimum civil liability insurance required by provincial law. In all other cases, agents will try to obtain more comprehensive coverage that meets the requester’s needs.
It’s worth mentioning that requests for access to the service have been dropping over the past two years. After peaking in 2019, requests have decreased by nearly 38% for individuals, and 50% for businesses. Throughout this period, most of the processed cases were for businesses. This situation reflects the issues affecting this sector and challenges in obtaining the required coverage.
2) Pilot project on auto insurance access for businesses
In late 2021, this reported difficulty led GAA to implement a pilot project to collect data from businesses applying for auto insurance access. Specifically, the purpose of this study was to document where business needs exceed the minimum insurance required by law and to assess how best to meet those needs.
3) Risk Sharing Plan (RSP)
Some drivers present a greater risk for insurers who may transfer them to the Risk Sharing Plan. Through this plan, these high-risk drivers are insured by all insurance companies, a solution that promotes access to insurance for all.
In 2020 and 2021, the risks transferred to RSP dropped by 7% and 24%, respectively, for individuals. Conversely, for businesses, it has been trending upward for the past five years, although it is showing signs of slowing down with a 16% increase between 2020 and 2021.
Questions about the access mechanism?
Insurance Information Centre agents are available to answer your questions on the subject. And don’t hesitate to refer your clients to the Centre.
Montreal area: 514-288-4321
Elsewhere in Quebec: 1-877-288-4321