Companies respond to proposed changes to New Brunswick auto insurance laws
Published: October 21, 2018
CATEGORY: Car Insurance
New Brunswick is Canada’s third most affordable auto insurance markets. However, as we reported earlier, insurance companies are seeking a major increase in premiums to offset losses from rising claims and repair costs.
Insurance companies wanting to increase premiums rates in the province need to go before the Insurance Board, New Brunswick’s regulator. Many of the largest carriers present in the province have already made their applications to the board and a meeting will be held next month to debate the applications and make a decision.
Wawanesa is the largest car insurance in New Brunswick. The company wants to raise prices by an average of 11.7 percent for 85,000 of its policyholders. If allowed, 30,000 of those policyholders would pay 17 percent above their current rate.
If the Insurance Board approves the increase, Wawanesa will begin increasing rates for customers on Jan. 1, 2019. At first, the increases will be put on new customers before existing customers experience the increase as the year progresses.
Economical Insurance is another company seeking to raise its car insurance prices. The company provides coverage for over 44,000 customers in the provinces and wants to raise premiums for 38,000 of those customers by 14 percent.
Allstate’s 33,000 New Brunswick customers will see an average hike of 9.9 percent, with 5,000 drivers facing a 15 percent increase.
Aviva Canada is the second largest P&C provider in the country but is lower down the order in New Brunswick. Still, with 25,000 customers it still has a sizeable reach. To offset costs, Aviva Canada want 14,000 New Brunswick policies to be increased by 10 per cent.