Canadian Underwriter

Majority of drivers in N.L. find paying for auto insurance “financially difficult”: Aviva poll


May 14, 2018   by Staff


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Photo copyright: 123RF.com/nito500Sixty-three percent of drivers in Newfoundland and Labrador say that paying for auto insurance has become “financially difficult,” according to a new poll from Aviva Canada.

“This poll shows that as auto insurance premiums increase, drivers are not seeing an increase in value,” said Gordon Murray, vice-president of broker distribution for Aviva’s Atlantic region. “We all can—and we must—do much better for the drivers of Newfoundland and Labrador.”

Drivers in the province pay an average of $1,090 per year on auto insurance—the highest rates in Atlantic Canada. Premiums increased by 22.4% from 2008 to 2016, while the rest of Atlantic Canada saw premiums increase by 11% over the same span of time.

Fifty percent of drivers surveyed said they wished there were more competition in the marketplace to drive down premiums. Eighty percent of drivers in the province were not aware that 95% of insured drivers in Newfoundland and Labrador had never made an injury claim.

Two thirds of drivers favoured a cap on pain and suffering claims, while 70% were in favour of an optional tort right to recover damages. Optional tort makes the right to sue for pain and suffering an optional benefit that drivers can purchase.

Aviva commissioned MQO to poll 400 Newfoundland and Labrador residents on auto insurance in April. A full copy of the poll can be found here.

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This story was originally published by Canadian Insurance Top Broker.