New Brunswick consumers face new price shock, this time for auto insurance
Consumer advocate for insurance urges consumers to shop around as rates increase
Several major automobile insurance companies are seeking approval to raise premiums they charge in New Brunswick by 10 per cent or more, blaming rising vehicle repair costs, car thefts, falling profits and other troubles.
The requests come as New Brunswick consumers have been battered in recent years by record housing, food and electricity prices and are "struggling to keep up with the rising cost of living," according to the New Brunswick government's recent speech from the throne.
If approved, auto insurance increase requests above 10 per cent will eventually affect more than 200,000 New Brunswick passenger vehicles. Most of the requests still need to be reviewed by the New Brunswick Insurance Board.
Michèle Pelltier, New Brunswick's consumer advocate for insurance, said when consumers receive the next renewal notice from their auto insurance company they should be checking for price changes and looking for better deals if premiums seem unreasonable.
New
Brunswick Premier Susan Holt's government expressed concern in
Tuesday's speech from the throne that consumers in the province have
been struggling with the rising cost of living. (Legislative Assembly of New Brunswick livestream)
"Always shop around," said Pelletier. "That's one of the things that we can do. Different companies offer different prices."
The province's second largest auto insurer, Definity (formerly known as Economical), has made two applications to the New Brunswick Insurance Board to raise its rates by a combined 22.3 per cent over two years.
The company covers more than 52,000 passenger vehicles in the province, or about one in every 10.
Michèle
Pelletier, New Brunswick's consumer advocate for insurance, is advising
consumers to shop around as rates for auto insurance rise. (Legislative Assembly of New Brunswick)
The first instalment of the changes requested by Definity, an 11.47 per cent increase for 2024, was approved and took full effect in New Brunswick in June.
Definity is now back in front of the insurance board asking for a second increase of 9.68 per cent, to take effect next June. The two increases combined will add about $208 to an average policy with the company.
Company cites industry pressures
A spokesperson for Definity said an interview about its price changes in New Brunswick could not be arranged. But in an emailed statement, it blamed the increases on its own rising costs.
"Definity's rate changes are a response to the various pressures currently affecting the entire insurance industry," the statement says.
"These include inflation, supply chain and labour challenges, a rise in auto thefts, and more frequent severe weather events."
The changes are not immediate for existing Definity clients, but will show up over time as each customer's current insurance policy comes up for its annual renewal.
Definity's sister company, Sonnet Insurance, which covers an additional 12,000 New Brunswick vehicles, was approved for a rate increase of 22.2 per cent earlier this year and is seeking another 6.85 per cent hike for the spring of 2025.
Desjardins
owns two of the largest companies that offer car insurance in New
Brunswick, The Personal and Certas. Both are requesting premium
increases of 18.84 per cent. (Ivanoh Demers / Radio Canada)
Two major auto insurers owned by the Desjardins Group are also seeking major increases for 2025.
Certas Home and Auto and The Personal cover more than 65,000 New Brunswick vehicles between them and have each applied for increases of 18.84 per cent.
Belair, an online company owned by Intact insurance, covers more than 22,000 New Brunswick vehicles and is requesting an average 12.72 per cent increase.
Wawanesa, New Brunswick's third largest auto insurer with 50,000 policies, is seeking permission to charge 10.34 per cent more.
However, several other insurance companies are seeking more modest changes. As rates shift among all companies, Pelletier recommends customers check what deals are available to them before committing to another year with their current insurer.
"We hear them at the office. Sometimes they call us and they can save sometimes $200, $300 per year. So I mean, that's lots of money," said Pelletier.
New Brunswick's largest insurer of automobiles, with nearly 60,000 policies, is Intact. It already has some of New Brunswick's lowest rates and is requesting an increase for 2025 of just three per cent.
New Brunswick currently has some of the lowest auto insurance premiums in Canada because New Brunswick drivers make fewer accident claims than most Canadians.
According to Canada's General Insurance Statistical Agency, New Brunswick motorists generated $659.32 in claim costs per insured vehicle in 2023, less than half of the $1,416.47 in claims per vehicle generated in Ontario.
ABOUT THE AUTHOR
David Amos
I bet Mr Jones is looking forward to his retirement
David Amos
Anyone wonder why the public is not permitted to intervene in these hearings?
Jack Bell
Reply to David Amos
They don't like common sense at meetings.
David Amos
Reply to Jack Bell
Its worse than than that
David Amos
Anyone wonder who New Brunswick's consumer advocate for insurance truly works for?
Jack Bell
Reply to David Amos
Also ,the CRTC and EUB.
David Amos
Reply to Jack Bell
At least those entities answered me
David Amos
"Wawanesa, New Brunswick's third largest auto insurer with 50,000 policies, is seeking permission to charge 10.34 per cent more"
Trust that they know who I am
David Amos
Surprise Surprise Surprise
Why is it NBers fault the insurance companies have falling profits?
David Amos
Reply to Rosco holt
Rosco holt
Reply to David Amos
But we are blamed for falling profits.
Cory Crete
The entire industry at this rate nation wide is at risk of collapsing then. There's only so much you can squeeze out of consumers, 10% increase, my lord wages don't even go up by that, meanwhile telecom does the same thing, utilities etc. On what Earth does every one's wages keep up at the pace of these increases? Sooner or later they are all going to need to revamp, or it'll take the shape of government run insurance (which we all seen how that worked out), or a completely overhaul of the rules to allow risk vs reward driving (as in allow a return of uninsured drivers), or risk further collapse of the auto industry on top.
Sunny ways, great times.
June Arnott
Reply to Cory Crete
Agreed. No one gets good raises unless you are unionized
Cory Crete
Reply to June Arnott
Even then it's not guaranteed to get a good raise. Ask grocery / retail sectors. They lucky to see 10 cents and never is it performance based anymore.
Bob Leeson
Reply to Cory Crete
The average vehicle repair cost has risen more than 20% in a single year across the western world, including US, Canada, Europe, Australia, and New Zealand. That doesn't help.
Cory Crete
Reply to Bob Leeson
Nor does it help scenarios where insurances are dumping the vehicles more instead of fixing them to have an excuse to raise premiums. Scratch on the windshield, toss. Governments should be mandating them to fix where applicable that's proven to be cheaper than replacement.
June Arnott
Reply to Cory Crete
Conspiracy theory there Cory. Just not true…respectfully
Bob Leeson
Reply to Cory Crete
To be fair, with such a massive increase in supply costs and continuing global parts shortage affecting most manufacturers, the threshold of declaring a vehicle a "ride off" has correspondingly narrowed.
If it costs less for the insurance company to repair rather than provide the full replacement costs according to the market value, then they would opt for repair. However with the sudden 20% increase, less vehicles involved in accidents meet that "repair is cheaper" point than before.
Cory Crete
Reply to June Arnott
I'm willing for anyone to have an investigation to look into that, you say conspiracy theory as if there are no bad apples, even if you have experience in the industry, it's limited to how vast, it's definitely not in every company that deals with insurance. Otherwise, if I can citate anything concrete, I'll post if it's not closed comments by then. Right now I in the middle of something. If you can citate as well, feel free otherwise it's just back and forth your word against another and it vehicle dumping has been done.
Cory Crete
Reply to Bob Leeson
Again if there's anything that can successfully citate one or the other side of this discussion would help - and I brought it so I aware it falls on me to find if possible.
Cory Crete
Reply to Cory Crete
I'll also add that if anyone feels the case where a repair would be cheaper - they can file a complaint to the ombudsman. Whether or not they keep track of how many is replaced rather than repaired, I don't know yet, but they will look into it.
Bob Leeson
Reply to Cory Crete
Another factor that influences an insurance company to choose to declare a vehicle a ride-off is because the depreciation rate of cars has increased, regardless if ICE or EV. The reason is because of the high level of year-by-year improving technology that's now put into them. Cars now are more like cell phones, but with wheels.
Cory Crete
Reply to Bob Leeson
I missed the days where cars were just cars, it would also lower the cost. Even on Electric, we don't need interactive tablets that play games and more. Just have the basic functions to drive. How much would the cost of a vehicle come down then?
June Arnott
Reply to Cory Crete
All you have to do is look at your estimate for repairs vs the amount they offer you write off. Quite simple really
Cory Crete
Reply to June Arnott
That only answers individually and doesn't address if Insurance companies have room to trim down their back end costs.
Cory Crete
Reply to June Arnott
Why wouldn't you want to know if any or all Insurance Companies have room to cut their costs to keep rates under control? In todays times with scams in nearly every sector, conspiracy or not, it'd be nice for transparency and no without doubt they did all they could and not just resorted to pleading for absurdly high rate hikes for the sake of owning another boat for each board member.
June Arnott
Reply to Cory Crete
Cars are so cheaply made now they break from a simple “tap”. But the parts aren’t cheap. Remember when a bbq lasted two generations?
Bob Leeson
Reply to June Arnott
Also with many parts now being made out of unobtainium, a car might be stuck undriveable in the shop for months while waiting for inventory to repair it. Insurance companies face additional costs in general by having to compensate those with polices that cover the rental costs.
June Arnott
Reply to Bob Leeson
And most shops dont have the staff to do the work
David Amos
Reply to June Arnott
My Chevy is as old as I am and in better shape
Bob Leeson
Reply to June Arnott
True. It's getting hard to even book a simple winter tire swap unless booked a month in advance. I resorted to buying a hydraulic jack and a $20 TPMS relearn tool from Amazon so I could do my changeovers myself in the garage.
David Amos
Reply to Cory Crete
Check my work
Bob Leeson
Reply to David Amos
Hey, if Cuba can do it... ;)
David Amos
Reply to Bob Leeson
Bingo
Truly sad when one can drive 20 years accident free yet the insurance goes up-makes no sense. The system is made to be against the little guy-you & me. Corporate profit & greed are prioritized over regular folk!
Jack Bell
Reply to claude bourgeois
32 accident free years here, I shouldn't have to shop around, they should be tripping over themselves to get my business.
David Amos
Reply to claude bourgeois
Bingo
Ronald Miller
Holt has only been in a month and she is already driving up the price of insurance.
John Montgomery
Reply to Ronald Miller
Are you sure it wasn't Trudeau?
claude bourgeois
Reply to Ronald Miller
Are you for real?
Al Clark
Reply to claude bourgeois
Remember those ppl in school that had to make up rhymes for football games?
David Amos
Reply to claude bourgeois
Of course not
Jack Bell
Reply to Ronald Miller
Don't forget her trying to remove the gas price cap, so they can charge whatever they want.
https://www.cbc.ca/news/canada/new-brunswick/holt-gas-regulations-prices-new-brunswick-1.7390776#vf-b5535520-a871-45d8-bc0d-65be8c79ab5c
David Amos
Reply to Jack Bell
I won't forget
Robert Brannen
Reply to Ronald Miller
Did you read the story, or did you simply ignore the reference to the increases already granted in 2024? I expect the application for premium increases on a yearly basis is a standard practice with this industry.
Ronald Miller
Reply to Ronald Miller
Tell us more Bobby.
Dan Lee
Reply to Ronald Miller
was approved in june Ronald.....j.u.n.e..........quess who kept it a secret......it wasnt me
Alex Butt
This insanity MUST be stopped!!! Do they think that we are just bottomless pits of money? While I understand that New Brunswickers are not the best of drivers and there are lots of claims, this is not justification of raising rates by 19%! Is is insanity. They are just boosting profits at any cost or care whatsoever.
David Amos
Reply to Alex Butt
I explained the wicked game in public then put it in writing 20 years ago
Alex Butt
This insanity MUST be stopped!!! Do they think that we are just bottomless pits of money? While I understand that New Brunswickers are not the best of drivers and there are lots of claims, this is not justification of raising rates by 19%! Is is insanity. They are just boosting profits at any cost or care whatsoever.
David Amos
Content Deactivated
Reply to Alex Butt
Should I reply to you twice?
Banks Wilderhanz
time to bring in public insurance and get rid of the price gouging for profit private auto insurance
David Amos
Reply to Banks Wilderhanz
It would be compromised in a heartbeat
Richard LeBlanc
So, auto manufacturers add gadgets that boost profits but distract drivers, make cars easier to assemble yet more costly to repair, and refuse to add anti-theft devices that are legislated in Europe ... and they have no responsibility for the increased costs to insurance companies?
Tom Campbell
Reply to Richard LeBlanc
Nailed it.
David Sampson
Reply to Richard LeBlanc
Most will look at the headline and assume it’s ( naturally ) the fault of insurance companies but you have explained, in clear language, why these insurance rates are increasing. Good job, Richard!
John Montgomery
Reply to David Sampson
The insurance companies aren't totally innocent. Why are people on the East Coast paying for the Fort McMurray and Jasper fires? Why are people living in the country where there is no crime paying for people who live in the city where there is? People who live in high risk areas should be paying for those high risk areas.
Al Clark
Reply to Richard LeBlanc
Oh we've got anti theft alright - like $300 keys that stop nothing.
David Amos
Reply to Richard LeBlanc
Welcome back to the circus
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