Economical Auto Insurance Review

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By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on March 12, 2024

Visit author page
By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated March 12, 2024

Visit author page

6 minute read

Article Contents

Economical Insurance Review

Economical Insurance is one of the nation’s largest and most esteemed property and casualty insurance companies, having a storied history of prioritizing customer needs. With its headquarters now in Waterloo, Ontario, Economical is dedicated to serving over one million Canadians, emphasizing community engagement and customer-centric service. Recognized as P&C Insurer of the Year, the company stands out for its comprehensive auto and property insurance solutions. Economical enhances customer convenience with a 24-hour emergency assistance line, ensuring immediate action on claims through approved contractors and facilitating on-site car rental pickups at Certified Economical Repair Facilities. This underscores its commitment to swift and efficient service.

When customers purchase a policy online with Economical, they can expect:

  • High customer satisfaction due to rapid responses to customer inquiries and straightforward claims processes.
  • Flexible customization options are available for both standard and non-standard insurance products.
  • Specialized commercial insurance tailored to specific industries, offered at competitive premium rates.
  • Dependable and affordable insurance solutions for members of various groups and associations.

Economical Insurance offers extensive insurance products for individuals, businesses, farms, and groups. The company prioritizes crafting policies that align with customer requirements while upholding exceptional customer service standards.

A Brief Company History

Founded in 1871 in Kitchener, Ontario, Economical Insurance was established by a community-minded group aiming to support their neighbours in times of disaster. Initially named Economical Mutual Fire Insurance Company, it was rooted in the principle of mutual aid, particularly to protect against barn fires. This “neighbour helping neighbour” ethos has guided the company to become one of Canada’s largest property and casualty insurers. Through strategic acquisitions, including Langon Insurance, Perth Mutual, and Western General, Economical expanded its offerings to include a broad spectrum of policies covering home, car, group, agriculture, and business needs.

In November 2021, the company underwent a significant transformation, demutualizing to become part of Definity Financial Corporation. This milestone introduced a fresh chapter in its history, upholding its dedication to outstanding customer service, as demonstrated by a 92% satisfaction rate in surveys conducted after claims. Today, Economical Insurance, headquartered in Waterloo, Ontario, serves over one million Canadians with a diverse range of insurance products, from auto and home to commercial and agricultural insurance, distributed by more than 27,000 authorized brokers nationwide. Despite its growth and evolution, Economical remains true to its founding mission, emphasizing customer-first service, teamwork, and excellence, as reflected in its recognition as the “P&C Insurer of the Year” in 2016 and its listing on the Toronto Stock Exchange under Definity Financial Corporation.

Why Choose Economical Car Insurance

Economical Insurance provides an extensive selection of car insurance options across Ontario and Canada, enhancing the protection of your vehicle. Their offerings encompass plans for cars, leisure vehicles, motorcycles, and motorhomes, allowing for personalized policy customization to suit your specific requirements.

Consistently adapting to the latest trends in insurance, Economical Insurance prioritizes customer feedback, shaping its services and policies to meet client demands. The benefits of choosing Economical Insurance are numerous, reflecting their commitment to innovation and customer satisfaction.

Comprehensive Coverage

The company presents a broad selection of insurance solutions for property, automobile, business, farm, and recreational requirements, along with chances to save money and a guarantee of 24/7 claims service.

Broker-Exclusive Services

Provides insurance through Economical insurance brokers, ensuring customers receive expert, unbiased advice, competitive premiums, and exceptional customer service.

Hassle-Free Service Program

Maintains high customer satisfaction with quality repair guarantees and prompt, friendly service, including 24-hour emergency assistance.

Financial Stability

Boasts a solid financial history with disciplined underwriting, receiving an A rating from A.M. Best.

Diverse Vehicle Coverage

Economical offers various auto insurance options, covering antique vehicles, ATVs, motorcycles, and motorhomes.

High-Risk Auto Insurance

Provides non-standard auto insurance for high-risk drivers, including those with impaired driving convictions, license suspensions, or a history of frequent claims.

Available Discounts

Economical offers discounts for drivers with no accidents or convictions, seasoned drivers, and vehicles equipped with anti-theft devices.

Pros and Cons of Buying Economical Car Insurance

Below is an overview of the pros, cons, and additional considerations of choosing Onlia for your car insurance needs. This insight will help gauge how well Economical aligns with your insurance requirements and preferences.

  1. Comprehensive Coverage: Offers a wide range of insurance options for property, auto, business, farm, and recreational needs, money-saving opportunities and a 24/7 claims service guarantee.
  2. Broker-Exclusive Services: Provides insurance through Economical insurance brokers, ensuring customers receive expert, unbiased advice, competitive premiums, and exceptional customer service.
  3. 24/7 Claims Service: Offers efficient, professional claims support around the clock, with a 92% customer satisfaction rate.
  4. Financial Stability: Boasts a solid financial history with disciplined underwriting, receiving an A rating from A.M. Best.
  5. Innovative and Flexible Products: Features innovative products with customizable options to fit various lifestyles and needs.
  6. Corporate Responsibility: Engages in partnerships with non-profits and charities to support community projects and encourages employee volunteerism.
  7. Stable Corporate Foundation: Known for sound financial decisions and strong underwriting, establishing a stable presence in the Canadian insurance market.
  8. Cost-Efficiency Focus: Committed to providing precise solutions at reasonable costs, with various discount options to help lower premiums.
  9. Hassle-Free Service Program: Maintains high customer satisfaction with quality repair guarantees and prompt, friendly service, including 24-hour emergency assistance.
  1. Broker-Only Policies: Policies from Echelon are exclusively available through collaboration with licensed and knowledgeable brokers.
  2. Poor Agent/Representative Availability: Online feedback indicates that customers frequently encounter difficulties contacting an agent from Economical.

Economical Auto Insurance Discounts

If you qualify, you might get the following discounts from Economical:

Bundle Savings

Save up to 20% by bundling car and home insurance with Economical.

Good Driver and Claims-Free Discounts

Enjoy lower premiums for maintaining a clean driving record.

Security and Anti-Theft Discounts

Receive discounts for installing anti-theft devices in your vehicle.

Loyalty Discounts

If you have zero convictions over the past three years, you may qualify for a 20% discount off your rate.

Renewal Discounts

Eligible customers enjoy discounts upon policy renewal.

Experienced Driver Discounts

Economical rewards experienced drivers with reduced rates.

Additional Insurance Services Provided by Economical

Beyond car insurance, Economical extends its services to a variety of property insurance options, catering to different needs:

Economical Insurance offers customized home insurance for various dwelling types, including houses, condos, vacation homes, and renter and landlord policies. The coverage extends to the complete protection of your home’s structure, additional buildings, and personal belongings, with additional provisions for identity theft, insurance for home-based businesses, and coverage for extra living expenses if your home becomes uninhabitable. Economical specializes in “special risk” insurance for those with challenging insurance histories, available in provinces like Alberta, Ontario, and Quebec. Additional benefits include overland water coverage for flood and water damage, a disappearing deductible for claims-free periods, and tailored insurance solutions for home businesses.

 You could qualify for various discounts on your Economical home insurance policy that can help you save money. Economical offers a range of discounts for which you may be eligible, including:

  • Claims-Free Discount
  • Mortgage-Free Discount
  • Renewal Discount
  • Discounts for Installed Security and Monitored Alarms
  • Multi-Policy Discount
  • Sewer Back-Up Loss Mitigation Discount
  • Discount for Sump Pump Alarms with Automatic Shut-Off

On the business insurance front, Economical covers both owned and leased business premises, liability, and commercial vehicles and offers surety bonds for the transportation, logistics, construction, and contracting industries.

Economical provides farm insurance tailored to various farm types and sizes for the agricultural sector, with specialized policies for different agricultural products. Recognizing the importance of farming as a lifestyle, Economical delivers specialized, cost-effective coverage options for farmers in Ontario, including general farm insurance and premier coverage for dairy and poultry.

Economical also facilitates savings through its group insurance program, offering exclusive discounts on car and home insurance to employees of companies, labour union members, professional or alumni groups, and non-profit organizations, making insurance more accessible and affordable for members of these groups.

How To Submit A Claim With Economical Insurance

You can submit a claim in three ways with Economical: through your insurance broker personally, through their customer helpline or via the claims section of the Economical website.

Contact by email

You can contact them at anytime 24/7

Contact by phone

Feel free to contact the team by phone

Website

File a claim by visiting Economical website

Commonly Asked Questions About Economical Insurance

What is the new name for Economical Insurance?

In 2021, after the demutualization of Economical Mutual Insurance Company, Definity Financial Corporation was established as the parent company of Economical Insurance, alongside Family Insurance Solutions Inc., Petline Insurance Company, and Sonnet Insurance Company. Though its legal name changed to Definity Insurance Company, it continues operating under the Economical brand, a name it has held since 1871.

How can I file a claim or cancel my policy with Economical?

To initiate a claim with Economical, you can file online or contact their 24/7 hotline at 1-800-607-2424 (or 1-888-875-8088 in Quebec). If you decide to cancel your policy mid-term, be aware that cancellation fees may apply, or you might need to pay the balance of your contract.

Is rideshare insurance available through Economical?

Yes, Economical provides insurance plans for rideshare drivers and is the primary insurer for Uber.

What types of insurance does Economical offer?

Economical is a comprehensive Canadian insurance provider offering auto, home, farm, and business insurance. For more information or to purchase insurance, consult an insurance broker.

How can I streamline the claims process with Economical?

It’s crucial to thoroughly document the incident to facilitate a smoother claims process. This includes taking photos of the other driver, their license plate, the accident scene, and all vehicle damage. Effective documentation can expedite the claims process and ensure comprehensive coverage of the damages to your vehicle.

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