When the president of association was asked about how much relaxation will be given to the car buyers in its insurance, he said that it has not yet finalized but this relaxation will surely be not same for all the cars. According to him they are planning to cut down the insurance price by up to 4 percent for the cars having value less than $25,000.
Some reports recently indicated that some people of Canada not buy the cars only because of their high insurance rate. For attracting those people towards the brand new cars, the association has set a plan to offer some relaxation in insurance price. The report also shows that is not just hike the sales of middle range cars in Canada, but also help the insurance providers to cover more and more cars.
A news channel recently broadcasted a news in Canada showing that lot of people sell their cars in Canada just before the expiry of their insurance. They do so in order to save the amount of insurance for their car and buy another used car with insurance already covered. According to the news channel, this is something that affects the sales of new cars in Canada. Also it affects the income of insurance providers in Canada up to a great extent. In order to attract the people towards renewing their car insurance, the insurance providers are going to offer some discount in the insurance of the cars.
Also some of the other news has shown that some people don’t renew their car insurance in Canada and drive them without insurance. According to news, it is another reason for which the insurance providers are not able to reach their target of covering the autos with insurance in Canada.
Not just the private insurance providers of Canada, but the government insurance firms have also decided to cut down the insurance price up to the possible extent.
When the association of auto insurance providers was asked that about the time period for which relaxation is offered to the car buyers, they said that probably it is for a permanent basis and insurance providers doesn’t have any plan to hike auto insurance prices soon.
Some private auto insurance firms have already started offering some additional services to the people who are buying new cars. Recently a Canadian auto insurance provider has insured some cars for a longer period at a price than was actually less than the insurance period.
Also there are some insurance providers in Canada who are planning to offer some additional services to those who want to cover their old cars with insurance. The insurance providers are offering them a discount of around 10 percent on their next insurance on a condition, and i.e. if they have not claimed for the car insurance even once during the previous year.