The province of New Brunswick could see considerable increases in auto insurance rates this year, if recent rate applications with the provincial insurance board are any indication.
According to information on the New Brunswick Insurance Board’s website, Sonnet Insurance has filed for a request to raise its rates by an average of 50.3% for both new and existing customers – the single largest rate increase applied for by any auto insurer in NB over the last three years.
Sonnet Insurance is owned by Economical Insurance. In total, Economical Insurance covers some 55,000 drivers in NB.
“Our proposed rates are calculated based on industry realities, and are a move to get to a more cost-appropriate position for both Economical and Sonnet, which have historically been underpriced in New Brunswick,” said Economical executive vice-president Paul MacDonald in a previous statement.
The increases are a response to the rise in auto accident claim expenses in recent years, insurers maintain. In 2018, records show that auto accident claim expenses among private passenger cars in NB reached $380.2 million, which represented a $147.3 million increase over the course of six years.
Other insurers have also filed for increases, though not as high as Sonnet’s. Unifund Assurance has filed a rate request for an average premium increase of 24.5%. Meanwhile, Wawanesa has filed for an 8.6% increase after winning approval earlier this year for an 11.7% increase, CBC News reported.
Michele Pelletier, New Brunswick’s consumer advocate for insurance, has advised that drivers should consider other insurance options if their rates become too pricey.
“We try to tell the consumer to shop around and see,” the advocate told CBC News. “I hope it’s going to stabilize pretty soon but it’s hard to predict.”
