Intact and Trafalgar’s approved auto insurance rate increases apply next week

New Brunswick motorists renewing their insurance with either insurer could pay up to 7.5% more

Motor & Fleet

By Lyle Adriano

Starting June 17, New Brunswick drivers renewing their insurance with Intact Insurance or its subsidiary Trafalgar Insurance Company of Canada could end up paying up to 7.5% more for coverage.

According to the companies, the increases will vary per consumer, and will not exceed 7.5% in any individual case.

Both insurance companies cover approximately 60,000 vehicles in the province.

The New Brunswick Insurance Board had approved the increase in rates after it had held a hearing over the proposed rate changes in March.

The increase is the largest approved in the province in over a decade, CBC News reported. Once it takes effect, 15% of New Brunswick’s motorists would be affected.

New Brunswick Attorney General lawyer Michael Hynes, who represented the public during the hearing, had opposed the increases. Hynes called for the insurance board to reject the increase, and even suggested a cut to company rates instead.

In a dialog with Intact's lawyer, Nadia MacPhee, Elliott reasoned that the company would make an excess profit in the province with anything but a rate cut. The attorney general then called for a reduction of 3.7% to make things “fair and reasonable.”

Other auto insurers in the province have also requested for rate increases, with several already approved. For instance, Wawanesa’s proposed average increase of 2.35% was approved on May 1, and it did not require a review. In New Brunswick, insurers who apply for increases less than 3% are not subjected to an automatic hearing, but in two other cases where the insurers asked for increases higher than 3%, the Insurance Board approved the changes.

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