Insurance experts, police say there are too many uninsured drivers in NL

Experts argue that drivers without insurance are becoming a liability and threatening to raise rates for everyone

Insurance experts, police say there are too many uninsured drivers in NL

Insurance News


The Insurance Bureau of Canada (IBC) has confirmed that in cases where policyholders are involved in accidents with uninsured drivers, Newfoundland and Labrador has a higher number of claims per capita than any other province.

Drivers involved in collisions with uninsured motorists must claim under Section D of their policies, which means the insured driver’s own vehicle insurance pays out for any costs instead of the uninsured. All insured vehicles in Newfoundland and Labrador are required to carry Section D coverage.

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IBC Atlantic vice-president Amanda Dean highlighted considerable concern over the issue.

“That is concerning because what that tells us is there’s a higher number of uninsured drivers creating claims, whether it’s injuring other people, or running into a car and causing damage to that car, or even running into a home and causing damage,” Dean told CBC.

Dean explained that as more Section D claims are being made, all premiums increase as a result as drivers collectively paying out claims for accidents that were not their fault. Figures from the IBC showed that in 2015, the total value of all insurance claims filed in Newfoundland and Labrador was over $266 million – a significant number considering the province’s small population.

“When you consider that some of these claims are driven by folks who have no insurance, there’s clearly a problem out there,” she noted.

The region’s police also agree that there are too many motorists in Newfoundland and Labrador that are driving uninsured vehicles.

Data provided by the Royal Newfoundland Constabulary revealed that in 2016, the police force caught 743 drivers operating a vehicle without insurance in areas of its jurisdiction.

RCMP also said that it has ticketed 296 drivers for having uninsured vehicles.

Related stories:
IBC supports Newfoundland and Labrador’s efforts to mitigate impaired driving
Severe winter weather generates poor road conditions in Newfoundland and Labrador


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