A year after New Brunswick’s Office of the Attorney General discovered that the province’s drivers overpaid an average of $152 to $174 on annual premiums, consumers may have begun to reap the benefits of the money they put towards auto insurance.
This is according to a new analysis from Canada’s General Insurance Statistical Agency (GISA), which found that New Brunswick car accident victims were awarded $264.5 million in 2014, which equates to the province’s highest insurance payouts since 2002, reports CBC News.
“Rough weather has been a factor,” said Kirby Curtis, owner at MacRae Insurance. “In the last couple of years, our winters have been lasting longer and the severity of storms means there’s a lot more snow.”
In addition to these unfavorable climate conditions, researchers note that the increased claims could also be attributed to a change in accident benefit legislation. Starting in July 2013, the definition of “minor injury” was expanded, and the cap for victims who experienced one increased from $2,500 to $7,500.
“The cap increase may also be a contributing factor,” Curtis said.
While the province approved Wawanesa and Allstate’s request to increase their 2015 rates by less than 3%, Curtis feels that the phenomenon is not widespread in New Brunswick just yet.
“Companies usually give us a heads up since they have to file for rates in the fall and they normally speak with brokers first,” he said. “But we haven't heard anything yet.”
