Winter Tire Discount Q&A

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1. How much is the discount?

It is 2.5%

2. What is the eligibility for the winter tire discount?

  • The vehicle must be equipped with four (4) winter tires.
  • The winter tires must be installed on the vehicle during the winter season (November to April).
  • The winter tires must bear the “winter tire” designation as implemented by Transport Canada. The tires are marked with a pictograph of a peaked mountain with a snowflake.

3. What coverages are eligible for the discount?

It applies to the following coverages: Third Party Liability (BI & PD), Accident Benefits, Uninsured Automobile, Direct Compensation Property Damage, Collision and/or the Collision portion of All Perils coverage.

4. What vehicles types are eligible?

Private Passenger vehicles rated as classes 01, 02, 03, 07, 08, 09, 10, 11, 12, 13, 18, 19 and farmers’ private passenger.

5. What vehicle types are ineligible?

Commercial including Farm Commercial, ATV’s, Motorcycles, Motorized Snow Vehicles, Antique, Classic, Motorhomes, Trailers and Campers.

6. Can a company automatically add the discount to all policies?

Like any other discount, we need to confirm eligibility. The insured must notify the company that they have winter tires on their vehicle(s).

7. Can the discount be added mid-term?

Yes, if the insured advises they have winter tires on or after January 1, 2016 (regardless of when their policy renews). The discount will be added on a pro-rated basis.

8. To validate the discount being added, the company may request supporting documentation on an annual basis. What type of documentation is acceptable?

Acceptable supporting documentation may include (but is not limited to):

  • A copy of the invoice – indicating purchase of four (4) winter tires for each eligible vehicle, or
  • A copy of the invoice – indicating installation of four (4) winter tires for each eligible vehicle, or
  • Photos of the vehicle(s) with the winter tires installed. Ideally, photos should include a date stamp and bear the “winter tire” designation as implemented by Transport Canada.

9. Can a company use a declaration form for insured(s) to sign as proof of winter tires on a vehicle?

No. The use of a declaration form requiring an insured(s) signature cannot be used without approval from FSRA. North Kent Mutual has not built the use of such form into the underwriting guidelines of the discount.

10. FSRA Bulletin #A0515 states “Insurers are required to have a process in place to notify their policyholders of this new discount”. What is the preferred/recommended process?

We will include it on our company’s website, social media accounts as well as in renewal letters.

11. Winter tires are only on a vehicle during the winter months. Does the discount get removed when the tires come off the vehicle(s)?

No. The discount stays on for the entire term of the policy.

12. If the discount was on the policy during the prior policy term, does the policy automatically get renewed with the discount the next term?

The policy is renewed with the discount. A company may; however, ask for a copy of supporting documentation each renewal as per the discount guidelines.

13. What happens when a vehicle with the discount is in a claim situation and the winter tires were not on the vehicle at the time of the accident?

The claim would be handled as per normal procedures. A company cannot deny the claim because winter tires were not on the vehicle at the time of the incident. The discount can be removed from the policy as per a company’s normal procedures for removing a discount when qualifications are no longer met.