St. John’s, Newfoundland — From one hardship to another, reports have begun circulating that Ukrainian refugees arriving in Newfoundland are being charged exorbitantly high auto insurance rates, well over the average paid by most Canadians.
The Canadian Press got a hold of two auto insurance quotes from a pair of Ukrainian refugees in St. John’s—one charging $5,592 annually and another charging $8,288. The province’s average insurance rate, based on 2020 data, comes to slightly more than $1,200 per year, according to the General Insurance Statistical Agency.
A liaison for a number of N.L.’s 166 recent refugee arrivals said that these exorbitant rates, in combination with the low-paying entry-level jobs being offered to these newcomers, are making it difficult for Ukrainians to begin the process of rebuilding their lives in Canada.
“It’s really a lot,” said Adilya Dragan, in an interview with the CBC.
Newfoundland and Labrador has led the way in Canada in its commitment to bring refugees to safety as the first province to charter a plane carrying refugees to Canada. That flight landed on May 9 in St. John’s. The province has had an office set up in Warsaw, Poland since March to assist Ukrainians fleeing their homes.
Dragan says the issue being faced by refugees is twofold: those who cannot speak English are often given work outside of St. John’s downtown core, adding to both the need for and the cost of their travel.
On the other hand, those with the language skills to be able to work more urban-centric service jobs are largely unable to compete in the city’s strained rental housing market.
The vacancy rate in St. John’s was 3.1 percent in October 2021, down from 7.5 percent the year before, according to the Canada Mortgage and Housing Corporation.
Dragan told the CBC that she drives a 31-year-old Ukrainian man to work every weekday because he can’t afford insurance. He works a construction job in Conception Bay South, about 30 kilometres southwest of St. John’s.
Monica Abdelkader, director of settlement services with the province’s Association for New Canadians, says that costs surrounding auto insurance and housing are just the beginning, as many of the new arrivals from Ukraine are single mothers who will be in need of summer camps or daycare services once the school year ends later this month.
“This is a problem that has long plagued newcomers,” said Abdelkader.
“A lot of work has been done in this area, investigations have been done in the past, and nothing has really changed.”
As such, Immigration Minister Gerry Byrne has a near impossible task ahead of him—convince insurance companies to do the ethical thing.
“Government is calling on the insurance industry of our province to do as the entire province has done, which is to come forward and offer solutions and not exploit this as an opportunity for increased revenue,” said Byrne.
Government officials are currently working out how to get Newfoundland and Labrador driver’s licenses into the hands of qualified Ukrainian drivers. Byrne says to expect an announcement on the matter in the coming days.
Amanda Dean, Atlantic v-p for the Insurance Bureau of Canada, is encouraging Ukrainian newcomers and insurance brokers alike to get in contact with the bureau to discuss their concerns and potentially clear the air of any confusion between customers and insurers.
“We’re having an awful lot of conversations on this, this very topic and others right now,” said Dean.
“It is something that’s new, and we absolutely want to work with brokers and government.”
