“I Promise” gets discount approval

Dominion of Canada General Insurance Co. has been successful in its bid to have a discount approved by Ontario’s insurance regulator for teen drivers in the “I Promise” program.

Domion CEO George Cooke, a staunch supporter of the program, had applied to the Financial Services Commission of Ontario (FSCO) for permission to offer a discount to policyholders with teen drivers on their policies who are a part of the safe driving program. Late last week approval was given for a discount equal to the value of the program’s cost, to be taken off the bodily injury portion of a policy. The program involves a safe driving contract signed between teen drivers and their parents, and a decal placed in the car’s window, allowing other drivers on the road to call and report unsafe driving incidents. Those reports will be given directly to parents.

The program’s creator, Gary Direnfeld, says a call center has already been established and all other pieces of the program are in place. Now, forming partnerships with insurers will be the key to making the program a success. Direnfeld found a supporter in Cooke more than a year ago, and the Dominion CEO has promoted the program to other Insurance Bureau of Canada (IBC) member companies. The FSCO approval is a “huge” step towards encouraging other insurers to become involved, notes Direnfeld. “This is a coup. It paves the way for all other insurers in the province of Ontario to make similar applications.”

The Co-operators has become involved as well, through a local agent in the Grand Falls-Windsor area of Newfoundland. RCMP community policing officer Donna Ducey took the program to Gary King of G.C. King Insurance Agency Ltd., who in turn convinced local Co-operators agencies to cover half the cost of the program, with parents contributing the rest. Given the soaring cost of claims insurers are facing, the program is one way to deal with the risks associated with auto insurance, Direnfeld adds. “And, from a consumer’s point of view, rather than paying higher premiums, they would much rather enter into partnerships that would see their kids safer and save insurance companies money.”