The average insurance premium in Prince Edward Island is set to go up due to an increase in benefits for injuries, according to the Island Regulatory and Appeals Commission (IRAC).
The IRAC said it has been receiving requests from insurers in the province to raise premiums following changes to the level of accident benefits that came into effect in P.E.I in October 2014, a
CBC News report stated.
Learn more about Auto/Motor insurance here.
Allison MacEwen, Director of regulatory services, said that the changes were brought in “primarily to bring [P.E.I] in line with other provinces,” as the province previously had the lowest coverage in the country.
“Our payout rates were lagging behind some of the other jurisdictions and we are just starting to see some of the companies apply for increases, primarily because of the increased payouts,” he said.
Insurance rates in the province will go up by around $10 per year – amounting to roughly a 20% increase in Section B premiums, MacEwan explained.
The increases will cover the cost of payouts for rehab after an accident that doubled from $25,000 to $50,000, and the cap for minor personal injury tripling from $2,500 to $7,500.
MacEwan added that while the IRAC has not yet received any complaints about the increases, it expects some when people become aware of the raises.
While some drivers may be unhappy with the rising rates, the increased benefits will be useful for victims of accidents, he said.
Related stories:
British Columbia to increase insurance rates by 4.9%
US proposes that cars should be able to “talk” to each other to prevent crashing
