Flexible payment options
Travelers Canada gives you choice. You can make one, three, or 12 monthly payments+
Standard Travelers Canada insurance policies can be paid by cheque, credit card or online/telephone banking. Cash payments are not permitted.
Which one is right for you?
Direct Monthly Payment Plan (six or twelve instalments)
Payments are automatically withdrawn from your chequing account with a bank, trust company or credit union once a month.
To participate in our Direct Monthly Payment Plan (the “Monthly Payment Plan”) we require an initial payment equal to two months of premium plus applicable taxes and fees, a void cheque and a completed authorization form. Subsequent premium payments are due one month in advance.
The monthly payment withdrawal date under the Monthly Payment Plan will coincide with the date your policy becomes effective or the withdrawal date that you have selected. If you would like to change your withdrawal date at renewal, please contact your broker.
For policy renewals, your first payment under the Monthly Payment Plan will be withdrawn in advance of the policy renewal date based on the schedule of payments included in your renewal offer.
If your bank account information changes, you must advise us two weeks prior to the due date of your next scheduled withdrawal date. If you do not provide that minimum notification and we cannot access the monthly withdrawal amount, your policy may be cancelled for non-payment of premium.
The Monthly Payment Plan is subject to a three percent finance fee on the total premium amount. If you have a six month policy term, a one percent finance fee is applied for the purposes of the Monthly Payment Plan to the total premium amount (for details see Direct Monthly APRs below).
The Three Pay Payment Plan (the “Three Pay Plan”) allows you to pay your premium in three instalments (based on a twelve month policy term).
The first instalment, 40 percent of your annual premium plus applicable taxes and fees under the Three Pay Plan, is due when you receive your policy. The second and third instalments under the Three Pay Plan, for 30 percent each plus applicable taxes and fees, are due three months and six months from the start of the policy.
We will send you a bill approximately two - three weeks before the due date of each instalment under the Three Pay Plan so you are informed in advance of the payment due date. The Three Pay Plan is also subject to a finance fee (for details see Three Pay APRs below).
Pay your premium and applicable taxes in one lump sum at the beginning of your policy and then do not think about it again.
Payment methods for One Pay and Three Pay
Online, telephone and bank payments
You can select to pay your premium in person at your bank, through online banking or by telephone banking. When paying online simply add “Dominion of Canada General Insurance Company” to your bill payment selections. (All personal insurance policies are underwritten by The Dominion of Canada General Insurance Company, which is part of Travelers Canada). It is necessary to add each of your policies as a separate selection under your billing list options.
When you pay in person, please provide the payment stub, which is found at the bottom of your policy billing, to the bank teller. The payment stub includes special coding to ensure that your payment is applied to your policy.
If you prefer, you may also make your payment by cheque. Please be sure to enclose the payment stub with your payment.
Use your Visa or MasterCard to pay your premium. You may contact your broker who can assist you in processing your credit card payment. Please note that all refunds issued by Travelers Canada are by cheque regardless of how the initial payment was made.
Payment options overview
The summary table below provides examples of the different payment options that we offer (as outlined above) based on a sample insurance policy with a premium of $1,000.00. The amounts shown in the examples below exclude applicable taxes.
Payment options overview
|PREMIUM COSTS||INSTALMENTS AND CREDIT TERM|
|Payment Option||Premium1||Finance Fee2||Total Cost3||Initial Payment4||Number of Initial Instalments5||Amount of Each Remaining Instalment||Number of Remaining Instalments||Total Number of Instalments||Credit Term6|
|Annual monthly - Ontario auto*||$1,000.00||$13.00||$1,013.00||$168.83||2||$84.42||10||12||12 Months|
|Semi-annual monthly - Ontario auto*||$1,000.00||$6.50||$1,006.50||$167.75||2||$83.85||4||6||6 Months|
|Three Pay - Ontario auto*||$1,000.00||$13.00||$1,013.00||$405.20||1||$303.90||2||3||12 Months|
|Annual monthly - all other policies||$1,000.00||$30.00||$1,030.00||$171.67||2||$85.83||10||12||12 Months|
|Semi-annual monthly - all other policies||$1,000.00||$10.00||$1,010.00||$336.67||2||$168.33||4||6||6 Months|
|Three Pay - Atlantic Canada provinces||$1,000.00||$18.00||$1,018.00||$407.20||1||$305.40||2||3||12 Months|
|Three Pay all other policies||$1,000.00||$18.00||$1,018.00||$400.00||1||$309.00||2||3||12 Months|
+ Product restrictions will apply.
* For Ontario automobile policies (new business and renewals effective on or after June 1, 2016).
1 The total amount advanced by Travelers Canada (i.e. the total amount advanced at the beginning of the policy/credit term) is equivalent to the premium charged on your policy.
2 The Finance Fee (i.e. the 3 percent interest charged on the twelve month Direct Monthly, the 0.65 percent charged on the six month Direct Monthly or the 1.3 percent applicable to Ontario auto, the 1.8 percent applicable to Atlantic Canada provinces auto, or the 3 percent applicable to all other policies charged on Three Pay instalments, whichever is applicable) is the total cost of credit.
3 Total Cost means the total of all instalments/payments (i.e. premium + total cost of credit), excluding applicable taxes.
4 The Initial Payment is the initial amount paid on or before the policy effective date (i.e. the first payment).
5 Number of Initial Instalments is the number of instalments paid on or before the policy effective date (e.g. for the twelve month Direct Monthly example above, 2 instalments, which amount to $171.67 in total, are paid on or before policy effective date).
6 Credit term commences on policy effective date. If you select the twelve month Direct Monthly the credit term is twelve months, the six month Direct Monthly the credit term is six months or the Three Pay the credit term is twelve months.
You are entitled to make an early payment against your outstanding balance at any time for any of the options, whether it is to prepay your entire outstanding balance or to make a partial prepayment. There is no charge or penalty for early payment(s).
Items returned due to insufficient funds are subject to an administration fee.
Annual Percentage Rates for the Direct Monthly and Three Pay Payment Plans
For the purpose of calculating the equivalent Annual Percentage Rates (“APRs”) for the finance fee charged on the Direct Monthly and Three Pay plans, please note the following:
- The APRs are based on a credit term that starts on the effective date of your policy.
- The APRs disclosed in this document are based on the assumptions that there are no changes to your premium amount, payment dates or payment amounts during the credit term and there are no large down payment(s) at the start of the credit term. The APRs may vary from the rate disclosed in this letter if changes are made to your policy and/or to the amount and timing of your payments.
Direct Monthly APRs
A finance fee of 3 percent of the total premium amount is charged on twelve month policies. This is equivalent to an APR of 8 percent.
For Ontario automobile policies (new business and renewals effective on or after June 1, 2016), a finance fee of 1.3 percent of the total premium amount is charged on twelve month policies. This is equivalent to an APR of 3.8 percent.
A finance fee of 1 percent of the total premium amount is charged on six month policies. This is equivalent to an APR of 7.2 percent.
For Ontario automobile policies (new business and renewals effective on or after June 1, 2016), a finance fee of 0.65 percent of the total premium amount is charged on six month policies. This is equivalent to an APR of 5.7 percent.
Three Pay APRs
A 3 percent finance fee is applied to the second and third instalment amounts. This is equivalent to an APR of 8 percent.
For Ontario automobile policies (new business and renewals effective on or after June 1, 2016), a 1.3 percent finance fee is applied to all three instalments amounts. This is equivalent to an APR of 6 percent.
For Nova Scotia and New Brunswick personal automobile policies (new business effective on or after September 15, 2017; renewals effective on or after November 1, 2017), a 1.8 percent finance fee is applied to all three instalments amounts. This is equivalent to an APR of 8.2 percent.
For Newfoundland and Labrador and Prince Edward Island personal automobile policies (new business effective on or after January 1, 2018; renewals effective on or after February 1, 2018), a 1.8 percent finance fee is applied to all three instalments amounts. This is equivalent to an APR of 8.2 percent.