Fredericton, New Brunswick – Several major automobile insurance companies are currently seeking approval to raise premiums in New Brunswick by 10 percent or more, says a new report from CBC News.
According to the report, the reason for this desired increase is related to rising vehicle repair costs, auto thefts and falling profits within the province.
If approved, auto insurance increase requests above 10 percent would eventually affect more than 200,000 New Brunswick passenger vehicles. However, most requests still need to be reviewed by the New Brunswick Insurance Board.
Notably, the province’s second largest auto insurer, Definity—formerly Economical—has made two applications to the New Brunswick Insurance Board to raise its rates by a combined 22.3 percent over two years. The company covers more than 52,000 passenger vehicles in the province.
While the first instalment of requested changes, an 11.47 percent increase, was approved and took effect in the province in June, Definity is now requesting a second increase of 9.68 percent to take effect next June.
Similarly, Definity’s sister company, Sonnet Insurance, was approved for a 22.2 percent increase and is now seeking another 6.85 percent hike for the spring of 2025.
According to Canada’s General Insurance Statistical Agency, New Brunswick’s motorists generated $659.39 in claims costs per insured vehicle in 2023, less than half of the $1,416.47 in claims per vehicle generated in Ontario.
