Finance Minister Rod Phillips has eliminated the regulatory roadblock that insurance companies said prevented them from offering auto insurance rebates to Ontario drivers during the COVID-19 pandemic.

“Given the financial pressure on Ontario families, we expect action in days not weeks,” Phillips said Thursday.

His comments came after the Progressive Conservative government amended a regulation under the provincial Insurance Act that will enable to companies to rebate motorists for up to 12 months after the COVID-19 emergency finally ends.

“My message to insurance companies has been clear: they should provide relief that reflects the financial hardships their dedicated customers are facing, due to the COVID-19 outbreak,” said Phillips.

“All of us will remember how companies treat us during these unprecedented times,” the treasurer warned.

“I often remind business leaders that their customers from the past five years are likely to be their customers for the next five years,” he said.

“Insurance companies indicated that the regulation preventing rebates was a barrier to providing relief to their customers. That barrier has now been removed so auto insurance companies can step up and do the right thing for the people and families of Ontario.”

With the change, Ontario becomes the first province or territory to remove such restrictions on rebates so insurances can pass along savings to motorists.

The government says such prohibitions are in place “to protect consumers from being misled in purchasing decisions based on a rebate and to provide consumer protection from insurers who may discriminate between consumers.”

Steve Kee of the Insurance Bureau of Canada, which represents most of the big firms, said “we recognize that many drivers are no longer commuting or using their vehicle as regularly and their premiums should reflect the reduced risk.”

“IBC expects this offer could initially result in $600 million in savings to consumers across Canada — more than half of that in Ontario alone,” said Kee.

Insurers are also looking at “flexible payment options for consumers who are in a vulnerable position or facing financial hardship as a result of COVID-19.”

Some firms have already begun lowering rates.

Intact said it has provided $40 million in relief “to recognize financial hardship and changing driving habits” since the pandemic took hold last month. It expects to offer $150 million in rebates by June 30.

“Our business exists to help people and that purpose matters now more than ever,” Intact CEO Charles Brindamour said Tuesday.

“Our teams are working around the clock to be responsive, and we are providing support to some of our most impacted customers,” said Brindamour.

“We continue to encourage customers to contact us so we can find the right solutions that best reflect their changing situation.”

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Intact is offering 15 per cent reductions on auto insurance premium reductions “for three months to reflect changes in driving habits.”

Motorists who “park and safely store their vehicles” could be eligible for 75 per cent reductions on their premiums.

The firm is also waiving missed payment fees.