Many drivers in New Brunswick could soon be paying a lot more for auto insurance.
Seven companies have applied to the New Brunswick Insurance Board for big increases.
They are seeking average rate increases ranging from 5.5 per cent to more than 18 per cent.
Michèle Pelletier, the province’s consumer advocate for insurance, said many companies had kept increases low since the start of COVID as fewer vehicles on the road led to fewer claims.
“But after three years of COVID, and with inflation, with disruption with the supply chain, parts being hard to get, the costs have increased, and now companies are filing for bigger increases,” Pelletier told our newsroom.
“Hopefully, this year, one big increase will be fine and they won’t ask for any increases next year, but it’s hard to see.”
Pelletier said companies must file their expected rates with the board each year. In cases where the increase is three per cent or higher, the request goes through a formal hearing, she said.
The advocate said big increases are not unusual, pointing to large rate hikes that took place back in 2017 and 2018.
Pelletier said the best thing you can do as a driver to reduce the squeeze is to shop around for insurance.
“It’s not fun to shop around, and it’s time-consuming, but at the end of the day, it’s worth it,” she said, noting there are many companies offering insurance in New Brunswick.
“If you should up your house insurance with your car insurance, you’re going to be receiving a rebate. If you’re part of a group, a teacher, nurse, for example, some companies will give discounts for those people.”
Pelletier said one of her roles as an advocate will be to participate in each of those hearings and help consumers as much as possible.
