Allstate Canada Indemnity Offers Non-Standard Product in Ontario

Allstate Insurance of Canada has launched its Allstate Indemnity Product in Ontario making it the first insurer in the province to offer both standard and non-standard auto insurance under the same brand name. The product was introduced in Nova Scotia in January and New Brunswick in March. It will be launched later this year in Alberta and Quebec.

The product insures higher-risk drivers, most of who formerly would buy insurance from the industry-wide Facility Association. "Our goal is to provide all customers with competitively-priced options," says Mike Haskell, president, Allstate Canada. "We have carefully designed our Allstate Indemnity Product to meet the needs of customers with imperfect driving records or other unusual circumstances.

"This product has produced more business than expected in the Maritimes," adds Haskell. "We expect to be just as successful in Ontario."

An Indemnity policy offers non-standard insurance coverage to drivers who are at higher risk because of factors like traffic accidents, violations, or insurance cancellations. "Allstate has access to the considerable experience of our parent in this field," Haskell points out. He says Allstate Indemnity Company is the largest non-standard insurer in the United States, with premiums for these coverages exceeding US $3 billion.

Allstate Canada has agreed with insurance regulators to classify drivers under a strict qualification system. "There is no grey area," explains George Hill, Allstate Canada vice president of sales. "If the driver comes under certain criteria, he or she must be covered by Allstate Indemnity. If the driver does not qualify under those criteria, he or she will not be charged the higher insurance rates."

"Drivers who move to the Allstate Indemnity Product from the province's Facility Association, in which drivers are assigned through various insurers, may realize premiums savings" says Hill.

Allstate says the product also will simplify the process when a driver is ready to move from non-standard to standard coverage. When insured with the Allstate Indemnity product, his existing policy will simply be amended to standard while the driver remains with Allstate. "This will cut red tape, cost and uncertainty," says Hill.