The Insurance Bureau of Canada (IBC) has pointed to a report from the Newfoundland and Labrador (NL) Board of Commissioners of Public Utilities (PUB) as proof that something must be done to curtail rising auto insurance rates in the province.
The report summarized the public hearings on auto insurance rates that took place over the past year, and underscored ‘significant shortfalls’ in the current auto insurance system. The report does not, however, include any recommendations on the next steps the province should take.
IBC said that auto insurance rates will continue to drain the pocketbooks of NL drivers if something isn’t done soon.
“Every day, the people of this province are telling our industry about the effect that the cost of auto insurance has on their household income,” said Amanda Dean, vice president, Atlantic, at IBC. “We need claims cost controls in place, based on the evidence in the PUB report, to protect everyone who pays for an auto insurance policy. This means changing the current auto insurance system.”
According to IBC, auto insurance rates in NL have skyrocketed in recent years, with drivers now paying over $1,100 a year, on average, compared to the $819 and $842 in the neighbouring Atlantic provinces of New Brunswick and Nova Scotia respectively.
IBC made several recommendations during the public hearing process, including a recommendation to cap pain and suffering awards for those suffering minor injuries.
“A minor injury cap would not take away the rights of people to sue if they are legitimately injured and require additional care,” said Dean. “In fact, reforms to the system would provide quicker access to rehabilitative care.
“The bottom line is that this province needs a sustainable, affordable product that helps injured people get better faster. Now that the government has the PUB report, it has the opportunity to make real change for drivers in the province.”
