IBC poll reveals “high level of public frustration” over NL’s auto insurance

The Insurance Bureau of Canada (IBC) has released the results of its latest poll, which found that many consumers in Newfoundland and Labrador believe they are paying too much for car insurance.

The bureau polled 400 consumers in the province regarding their thoughts on NL’s current auto insurance system; of the respondents, 91% were drivers.

Notable findings of the report include:

• 85% of respondents believe that the auto insurance industry is operating at a profit.
• 82% (rightly) think drivers in NL pay more for car insurance than other Atlantic Canadian drivers.
• Only 47% are aware of automobile insurance reform in the province.
• Despite limited awareness of current reform efforts, 9 out of 10 residents support a public review of NL’s auto insurance system – support is largely driven by the high cost of insurance in the province.
• When asked who should be responsible for changes to the insurance industry:
  • 42% said the government
  • 18% answered the insurance industry itself
  • 15% said the IBC
  • 67% of residents said they support a cap on minor injury pay outs as a way to reduce insurance costs.
• Nearly a quarter (23%) of respondents believe the rates are higher in NL compared to other Atlantic provinces due to the sheer amount of claims/accidents.

With the release of the poll’s results, IBC has made a number of key recommendations to address NL’s auto insurance issues:

• Implement a minor injury damages cap of $5,000.
• Enhance accident benefits; increase benefit amounts to match those found in other Atlantic provinces and establish pre-approved evidence-based treatment protocols for minor injuries to expedite treatment.
• Establish a direct compensation property damage model, so that regardless of who is at fault, the insurer would repair the vehicle in a collision.
• Change the rate regulation process to be quicker, less costly.

These recommendations echo those IBC Atlantic vice-president Amanda Dean had proposed in a letter addressed to NL’s Public Utilities Board last week.