If you had to renew your auto insurance policy recently, the odds are likely that you paid more this year than last.
New Brunswick’s Consumer Advocate for Insurance is hearing a lot of complaints about skyrocketing auto insurance rates this year.
Michele Pelletier says we’ve been seeing higher rates in recent years which she is calling a cycle.
Some insurance companies have been granted double-digit increases again.
“Their rates are more… they say (the increases) are more accurate and they are asking for normal… if I can say a ‘normal’… increase.” noted Pelletier.
While the number of collisions has dropped, she says those collisions have been more severe and more costly for the industry.
The companies also say today’s high-tech vehicles – with cameras and various electronics – are now more expensive to repair.
Despite little traffic during the COVID-19 lockdown this spring, she adds some companies likely applied for rate increases before the pandemic began.
She says it often takes up to nine months to get a hearing before the provincial insurance board which must approve any hikes higher than three percent.
With more than 50 insurance companies doing business in New Brunswick, she advises consumers to shop around for better rates and find ways to bundle your car with your home to save money.
