New Brunswick drivers are bracing for another potential financial hit as several major auto insurers in the province push for significant rate increases.
These proposed hikes—some exceeding 10%—come amid soaring costs for essentials like housing, food, and electricity, further squeezing household budgets. If approved, the increases would impact over 200,000 passenger vehicles, with the New Brunswick Insurance Board still reviewing most of the applications.
Michèle Pelletier, the province's consumer advocate for insurance, is urging residents to closely monitor their renewal notices and consider shopping around for better rates.
“Always shop around. That’s one of the things that we can do. Different companies offer different prices,” Pelletier told CBC, noting that many consumers could save hundreds of dollars annually by switching insurers. “Sometimes they call us, and they can save $200, $300 per year. That’s lots of money.”
New Brunswick’s second-largest auto insurer Definity is among the companies seeking approval for substantial increases. After implementing an 11.47% hike earlier this year, the company is now asking for an additional 9.68% increase in June 2025, bringing the total increase over two years to 22.3%. This would add about $208 to the average annual policy.
Definity attributed the request to rising industry costs, including inflation, supply chain disruptions, and more frequent auto thefts and severe weather events.
Other insurers are also seeking double-digit hikes.
Sonnet Insurance, a Definity sister company, has already implemented a 22.2% increase and is requesting another 6.85% for 2025. Desjardins Group subsidiaries Certas Home and Auto and The Personal are each pursuing 18.84% hikes, while Intact’s Belair is seeking a 12.72% increase. Meanwhile, Wawanesa has proposed a 10.34% rate hike.
Not all companies are requesting steep increases. As New Brunswick’s largest auto insurer, Intact has proposed a modest 3% increase for 2025. The company’s rates are already among the lowest in the province, which continues to boast some of the most affordable auto insurance premiums in Canada.
In 2023, New Brunswick drivers generated $659.32 in claim costs per insured vehicle—less than half of the $1,416.47 reported in Ontario, according to the General Insurance Statistical Agency.
While the New Brunswick Insurance Board has yet to finalize many of the requested increases, drivers are reminded the importance of being proactive by staying informed and weighing options carefully.
