Winter Tire Discount Explained
January 21, 2016

Winter Tire Discount Explained

This October, the Ministry of Finance issued a statement confirming all insurance companies including the Facility Association are required to provide a winter tire discount as of January 1, 2016. This was mandated by the Ontario Government in 2014 as part of their commitment to reduce insurance premiums.

Are all discount amounts the same?

The actual discount is up to the insurance company, but regulators approve them – we’ve seen ranges from 2% to 5%. Some insurers will offer the discount only at certain times throughout the year. Each insurer is different so get in touch with us for any clarification.

What do we have to do?

While each company has communicated different requirements, it appears most companies are taking an honour system approach. While there’s no indication insurers are looking to scrutinize drivers for detailed information, we suggest holding on to proof of winter tire installation up front so you’re protected in the instance of a claim dispute. Proof of winter tire installation could include:

  • A picture of winter tires on the vehicle
  • A purchase receipt for the tires
  • A purchase receipt for installation
  • Documentation validating verbal confirmation from your clients that they have winter tires on their vehicle

As always, if you have any questions get in touch with us today! 1-888-268-2408.

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