Look out New Brunswick! Auto rates may be going up

September 18th, 2016  |  Canadian Business

Last week New Brunswick’s insurers submitted the last of their proposed rate changes for 2017, and it could mean higher premiums for one of Canada’s cheapest provinces for auto insurance.

2015 was one of the worst years for insurers in New Brunswick. In fact, CBC says the industry paid out $304.8 million in claims alone, the most they’ve seen in 14 years. At the same time, insurance premiums were getting lower, meaning they were losing more and more money every year.

Anecdotal evidence points the blame at New Brunswick drivers who are claiming more and more damage with their insurance policies even for small jobs they would normally cover out of pocket. One repair shop owner says, “We used to see as high as 40 per cent customer-pay. Now it's swung that we're probably up to 80 per cent insurance.”

Insurance Bureau of Canada’s Atlantic regional vice-president offers the counterpoint that severe weather may have driven up the number of claims in 2015, which means a significant premium increase would not be necessary. However, historical data points to steadily increasing claims even before the bad weather, which means NB drivers could be in for a bit of a sticker shock when any approved rate changes come into effect next year.