Prince Edward Island’s Island Regulatory and Appeals Commission (IRAC) has revealed that auto insurance rates in the province have risen between 3% and 5% so far for this year.
The commission explained that the increases were partly because of technological advances in vehicles – such as collision avoidance systems, rear back-up cameras, and side airbags. While they have made vehicles safer, they have also made the automobiles costlier to repair, said IRAC director of regulatory services Allison MacEwen.
MacEwen told CBC News that vehicles are often more tricky to repair as damaged parts can involve replacing multiple other parts just to get certain safety features working again. Those replacements also take more time and effort, MacEwen added.
Although PEI is facing insurance rate hikes, IRAC said it has not seen any applications from insurers this year, unlike in other provinces like New Brunswick or Nova Scotia.
This is due to PEI’s smaller population and lower speed limits on highways, MacEwen pointed out.
The regulation director also mentioned that while other provinces have enacted increases due to the rise of distracted driving cases, PEI’s rates remain unaffected.
“There is a lot of public awareness … that distracted driving and unauthorized use of cellphones is certainly frowned upon and can be very costly if one is convicted,” she said.
