New Brunswick auto insurers seek largest rate hikes in 16 years
Steep auto insurance rate hikes could return to the province, but it's too late to become an election issue
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Commenting is now closed for this story.
David Amos
Welcome to the Circus
David Amos
The fat lady ain't sung yet
David Lutz
They implemented the Cap on minor injuries as that was the issue years ago! Where is the money going
David Amos
@David Lutz Methinks that you should know the lawyers get the lion's share in any dispute over injuries N'esy Pas?
Rick Given
insurance=legalized fraud
David Amos
@Rick Given as far as I know New Brunswick is a no-fault jurisdiction so we shouldn't have to buy insurance anyway
Jason Inness
So, the government capped the
soft tissue damages, the market has been doing well, and now they want
to increase our premiums anyway, by a large amount.
The amount of policies they want to apply the increases to cannot possibly be attributed to accidents.
The amount of policies they want to apply the increases to cannot possibly be attributed to accidents.
Rosco holt
@Jason Inness
Maybe it's what they lost on the stock market or at a casino.
Maybe it's what they lost on the stock market or at a casino.
David Amos
@Rosco holt Methinks a lot of truth is said in jest N'esy Pas?
Alexandre Hilton
I'm in my thirties, I've
never had an accident and neither has my wife. My premiums will be
increasing, why again? How about you just raise the premiums of those
who've been in multiple accidents, or those who can't pass a monthly
drug test, or those who consume alcohol, etc...
I feel like I'm being punished for a lifetime of making responsible decisions.
I feel like I'm being punished for a lifetime of making responsible decisions.
Norman Albert Snr
@Alexandre Hilton I am claim
free after 50 years of driving, but my increases are more then the cost
of inflation that my income is based on. Compensation in the insurance
business is mostly commission based. The more you sell ($$$) the greater
the benefits. Having the government on your side never hurts your pay
check.
David Amos
@Norman Albert Snr Oh So True
Samuel Porter
Too late to become an election issue? Did I miss something?
David Amos
@Samuel Porter nope but CBC did
Samuel Porter
Thank you to the insurance
bureau of NB. we have to stop saying " The insurance bureau " did this,
and " unemployment " did that, and "NB power " raised this, and start
naming the INDIVIDUALS who made the final decision, that way there is
some accountability. It is very convenient for these overpaid
underworked people to hide behind a corporate, bureaucratic name. Must be nice to have a job where you make EVERONES life harder and we
don't even know who you are. And who is GISA? They wouldn't be insurance
company would they...naw… couldn't be.
Samuel Porter
@David Amos Like I said,
board means nothing to me. An individual, or individuals with a NAME
make the final decision. They hide behind the board. We need to know who
these individuals are.
David Amos
@Samuel Porter one of those people is Brad Woodside
Nathan Simpson
"According to Canada's
General Insurance Statistical Agency [GISA], auto accidents in New
Brunswick generated $376.9 million in claims in 2017. That's a $144
million — 62 per cent — more than five years earlier with no increase in
premiums to pay for it."
No increase in premiums??? Then why does my insurance goes up each year?, even with no accidents or claims?
No increase in premiums??? Then why does my insurance goes up each year?, even with no accidents or claims?
David Amos
@Nathan Simpson Exactly
stephen blunston
hmmm this sound like a money
grab I understand premiums need to increase from time to time but by
9-15 % , this sounds excessive . why so we can cover for the large
metropoliton areas of montreal Toronto vancouver and all the massive
insurance bills made on overcrowded hwys in large city
David Amos
@stephen blunston "hmmm this sound like a money grab"
Methinks that is because that it is what it is N'esy Pas?
Methinks that is because that it is what it is N'esy Pas?
Murray Brown
The election isn't until next Monday... Why can this not be an election issue?
I wonder... What has changed over the past few years that would make auto insurance claims increase so much so.... I think it's round and has two lanes, instead of the traditional and less accident prone 1 lane, but hey... They only have a bunch of accidents on a weekly basis, that they didn't have before the round-a-bout. Regardless, governments should take over the insurance industry. In the end, they pay most of the cost anyways.
I wonder... What has changed over the past few years that would make auto insurance claims increase so much so.... I think it's round and has two lanes, instead of the traditional and less accident prone 1 lane, but hey... They only have a bunch of accidents on a weekly basis, that they didn't have before the round-a-bout. Regardless, governments should take over the insurance industry. In the end, they pay most of the cost anyways.
David Amos
@Murray Brown "The election isn't until next Monday... Why can this not be an election issue?"
It is
It is
Norman Albert Snr
Insurance is something have
to have but hope you never have to use. The Government regulation
imposing this need fuels the greed. In more cases then not claims are
not filed to avoid future increases. Anything under $2000 claim is
unadvised. Then you have the difference between a private and corporate
repair bill. The cost of replacing a windshield (privately)is about the
impact of the deducible put through insurance and then your rates go up
for a decade. It is a scam.
Joey Marks
@Norman Albert Snr its way
cheaper to pay for a windshield out of pocket then it is to have glass
coverage and ay the deductable, even if it was 1 every 2 years
David Amos
@Joey Marks YUP
Roy Kirk
Part of the rise in claims is
likely due to the use of more injection molded plastic parts where
metal used to be used. They can't be repaired, just replaced, and at
considerable expense. But they're lighter and give better fuel economy.
David Amos
@Roy Kirk True
Daniel Rawlins
Here's the thing, there is no
mention of insurance company's earnings (profit) just the $377 million
paid out in claims. There is also no mention of road motor vehicle
registrations in the province; Stats Canada information for these
registrations in New Brunswick is mysteriously unavailable on the Stats
Can. web site (the only province or territory in the country for which
these stats are unavailable at the present time). If these companies
want increases their annual profits should also be made public.
The motoring public is required by law to carry a certain amount of insurance coverage on their vehicles or they are not permitted to drive their vehicles on public roads.
The motoring public is required by law to carry a certain amount of insurance coverage on their vehicles or they are not permitted to drive their vehicles on public roads.
al bekirkey
@Daniel Rawlins a private
person should be able to travel with no paperwork on public roads as
long as they are not in the process of commercial endeavours according
to the charter of rights
David Amos
@al bekirkey Kinda sorta true
John Valcourt
The major reason for this
gouging is nothing more than profits. These companies should be forced
to declare their profits before being allowed to gouge us for more
money. The only reason they are doing this is because they can.
David Amos
@John Valcourt I agree
Eric Plexe
Hope the Insurance Board does their due diligence:
David Amos
@Eric Plexe Methinks its strange that the Liberals never got rid of the Insurance Board N'esy Pas?
"Liberals want Insurance Board dissolved and duties taken over by Energy and Utilities Board"
"Liberals want Insurance Board dissolved and duties taken over by Energy and Utilities Board"
David Amos
@Eric Plexe Methinks Paul
D'Astous a backroom Progressive Conservative with close ties to leader
Blaine Higgs is gonna be upset to read these comments N'esy Pas?
https://www.cbc.ca/news/canada/new-brunswick/progressive-conservative-new-executive-director-1.4595620
https://www.gnb.ca/cnb/news/jus/2006e0020ju.htm
https://www.canadianunderwriter.ca/insurance/carr-appoints-two-members-to-executive-committee-1000388338/
https://www.cbc.ca/news/canada/new-brunswick/progressive-conservative-new-executive-director-1.4595620
https://www.gnb.ca/cnb/news/jus/2006e0020ju.htm
https://www.canadianunderwriter.ca/insurance/carr-appoints-two-members-to-executive-committee-1000388338/
al bekirkey
ins companies are one of the best social engineering tools available to banks
David Amos
@al bekirkey Methinks banks own many insurance companies N'esy Pas?
New Brunswick auto insurers seek largest rate hikes in 16 years
Steep auto insurance rate hikes could return to the province, but it's too late to become an election issue
A group of New Brunswick's largest automobile insurance companies is applying for the steepest rate hikes in 16 years.
But bigger bills won't be hitting drivers until weeks after New Brunswick's provincial election at the end of the month — making the topic unlikely to rile up voters like it has in previous campaigns.
"Increases will be significant," said Michele Pelletier, New Brunswick's consumer advocate for insurance.
"They say, 'OK, we're having some really big losses,' that's what they're telling us and they're asking for bigger increases."
According to Canada's General Insurance Statistical Agency [GISA], auto accidents in New Brunswick generated $376.9 million in claims in 2017. That's a $144 million — 62 per cent — more than five years earlier with no increase in premiums to pay for it.
GISA numbers show between 2012 and 2017 the average premium paid by drivers in New Brunswick actually fell 53 cents to $803.15 per vehicle.
Pelletier said it was only a matter of time before companies started pushing for drivers to pay more.
"None of us want to have higher premiums. I'm the first one to say I'm paying enough," said Pelletier.
"But there were signs, we could see signs."
The
New Brunswick Insurance Board is starting to hear applications from
insurance companies seeking rate hikes to deal with surging claims
costs. (CBC)
Next month the board will hold hearings into an
application from New Brunswick's largest auto insurance
company — Wawanesa — to raise its premiums on more than 85,000
provincial policy holders by an average of 11.7 per cent. This includes
increases of 17 per cent of about 30,000 of those drivers.
The company wants approval to begin charging new customers elevated prices on Jan. 1, and then pass the increases onto existing customers throughout next year whenever drivers' current policies come up for renewal.
Pelletier and the province's Office of the Attorney General are both intervening in the Wawanesa hearing on behalf of consumers, but it will be an uphill fight to derail the application.
New Brunswick has some of Canada's lowest auto insurance rates, 30 per cent less than in Alberta and more than 40 per cent cheaper than in Ontario.
In a hearing into an eight per cent rate hike application by the Dominion of Canada General Insurance Company earlier this summer, Pelletier and the Office of the Attorney General both intervened and then withdrew when it became apparent the increase was justified.
Former
premier Bernard Lord won a narrow election victory in 2003 after
widespread anger over skyrocketing insurance premiums became a campaign
issue. (Adrian Wyld/Canadian Press)
Economical Insurance, which covers more than 44,000 of New Brunswick drivers, has applied for a 14 per cent increase on 38,000 of those customers with lesser increases for the rest.
Allstate, which covers 33,000 New Brunswick drivers, has applied for an average rate increase of 9.9 per cent on its customers for the second year in a row. That includes 15 per cent increases on 5,000 of its policy holders.
Pembridge has also applied for an average 9.9 per cent increase on its 17,000 New Brunswick clients with Aviva asking for 10 per cent increases on roughly 14,000 of its more than 25,000 provincial policies.
The province has not experienced auto insurance increases of that size since 2002 and 2003 when rising accident claims last triggered major premium bumps.
Widespread public anger nearly toppled Bernard Lord's government in the 2003 provincial election.
But bigger bills won't be hitting drivers until weeks after New Brunswick's provincial election at the end of the month — making the topic unlikely to rile up voters like it has in previous campaigns.
"Increases will be significant," said Michele Pelletier, New Brunswick's consumer advocate for insurance.
"They say, 'OK, we're having some really big losses,' that's what they're telling us and they're asking for bigger increases."
- Car insurance hikes shaping up to be highest in decade, consumer advocate says
- Auto insurance rates rising as companies blame costs of accident claims
- Auto insurance rate shock possible in 2017 due to rising claims
According to Canada's General Insurance Statistical Agency [GISA], auto accidents in New Brunswick generated $376.9 million in claims in 2017. That's a $144 million — 62 per cent — more than five years earlier with no increase in premiums to pay for it.
GISA numbers show between 2012 and 2017 the average premium paid by drivers in New Brunswick actually fell 53 cents to $803.15 per vehicle.
Pushing drivers to pay more
Pelletier said it was only a matter of time before companies started pushing for drivers to pay more.
"None of us want to have higher premiums. I'm the first one to say I'm paying enough," said Pelletier.
"But there were signs, we could see signs."
For insurance companies, surging claims
crashing into stagnant premiums has splattered red ink all over their
New Brunswick business and sent them speeding to the province's
regulator — the New Brunswick Insurance Board — to apply for higher
rates.
The company wants approval to begin charging new customers elevated prices on Jan. 1, and then pass the increases onto existing customers throughout next year whenever drivers' current policies come up for renewal.
Pelletier and the province's Office of the Attorney General are both intervening in the Wawanesa hearing on behalf of consumers, but it will be an uphill fight to derail the application.
Low auto insurance rates
New Brunswick has some of Canada's lowest auto insurance rates, 30 per cent less than in Alberta and more than 40 per cent cheaper than in Ontario.
In a hearing into an eight per cent rate hike application by the Dominion of Canada General Insurance Company earlier this summer, Pelletier and the Office of the Attorney General both intervened and then withdrew when it became apparent the increase was justified.
In a ruling two weeks ago the Insurance Board granted Dominion's application in full.
But Wawanesa and Dominion are not alone.Economical Insurance, which covers more than 44,000 of New Brunswick drivers, has applied for a 14 per cent increase on 38,000 of those customers with lesser increases for the rest.
Allstate, which covers 33,000 New Brunswick drivers, has applied for an average rate increase of 9.9 per cent on its customers for the second year in a row. That includes 15 per cent increases on 5,000 of its policy holders.
Pembridge has also applied for an average 9.9 per cent increase on its 17,000 New Brunswick clients with Aviva asking for 10 per cent increases on roughly 14,000 of its more than 25,000 provincial policies.
The province has not experienced auto insurance increases of that size since 2002 and 2003 when rising accident claims last triggered major premium bumps.
Widespread public anger nearly toppled Bernard Lord's government in the 2003 provincial election.
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