Car insurance rates set to drop
Some Nova Scotia drivers could be getting a break on their car insurance.
Since September, five insurance companies have applied to the Insurance Review Board to lower their passenger vehicle rates.
The declines range from one or two per cent to a high of nine.
The board’s executive officer Donna Boutilier said several of the applications are still being reviewed, while in others, a decision is pending.
“We’re in various stages of those reviews,” Boutilier said.
The decisions should be completed by the end of the year, she said.
The insurance companies seeking a reduction are Allstate, Pembridge, Aviva - which is asking for the largest reduction - Traders General and Axa.
Don Forgeron, Atlantic vice-president of the Insurance Bureau of Canada, isn’t surprised the rates are going down.
“The reforms instituted by government back in 2003 have worked very, very well. These filings are simply a continuation of a trend that started back then,” Forgeron said.
He said the reforms - which brought in a legislated cap on injury awards - have helped control claims costs. That means more companies are getting involved, creating more competition.
“I can’t predict what’s going to happen in the future, but certainly the recent history indicates that the reforms have worked and we hope they will continue to work,” said Forgeron.
“It’s great news for Nova Scotia drivers,and it dispels, to some extent, the misinformation that the NDP tried to put out earlier in the week that the reforms have not worked,” said Forgeron.
Earlier this week, NDP leader Darrell Dexter told the Canadian Press that the province was duped by the industry to help it make more profits.
The Insurance Review Board is also reviewing an application for a new entrant into the Nova Scotia market.
The Insurance Company of Prince Edward Island will have its rates set by the board.
The board has received 20 review applications this year, seven of which dealt with minor regulatory matters, Boutilier said.