New Brunswick auto rates decline for seventh year

Auto insurance premiums in New Brunswick have dropped for the seventh straight year, revealing “continued stability” since reforms were introduced in 2003, according to the 2011 Consumer Advocate for Insurance annual report.

Average premium in the province was $731, down from $742 the year before, notes Ronald Godin, the consumer advocate for insurance. He adds that the downward trend in rates is continuing into 2012.

Insurance premiums averaged more than $1,100 in New Brunswick in 2003, when the provincial government brought in reforms that included a $2,500 cap on minor injury claims.

An auto insurance working group submitted a report to the government in Nov. 2011 recommending an increase in the cap of $4,000 to $6,000. It also suggested changes to the definition of minor injury to “a sprain or strain or whiplash-associated disorder, or a combination thereof, which results in minor consequences to a person’s life.”

“We await with great anticipation the government’s response to the Auto Insurance Working Group report,” said Godin.