What are the Different Factors that Affects Newfoundland and Labrador Auto Insurance Rates/Prices?

Newfoundland and Labrador auto insurance companies consider a number of factors when calculating your auto insurance rate. The following factors are used in determining your auto insurance rate in the province:

• Your driving record
• The age of your car
• Your insurance claims record
• The type of vehicle you drive
• Whether you use your car for business or personal purpose
• The territory of use and annual mileage.
• Whether the car is used by any other driver in your household.

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What is the minimum requirement for Newfoundland and Labrador auto insurance?

Residents of Newfoundland and Labrador are required by law to carry $200,000 in third-party liability coverage on their vehicle in order to register their vehicles. Drivers are also expected to have unidentified and underinsured insurance for coverage in the event of an accident with an uninsured driver. Also, accident benefits coverage is not compulsory in the province but it is recommended.

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Newfoundland and Labrador Auto Insurance News

A report from the Superintendent of Insurance for Newfoundland and Labrador revealed that in 2017, insurance companies in Newfoundland and Labrador collected $92 million more in auto insurance premiums than was paid out in claims. That makes for an excessive profit, says the Insult Campaign to Protect Accident Victims.

According to the Insurance Bureau of Canada (IBC), the number does not include the high cost of operating an insurance business in the province. The report filed on Nov. 9 by the Superintendent of Insurance indicates business transactions in the province for the year that ended on December 31, 2017.

In 2017, about 200 insurance companies were licensed to operate in the province of Newfoundland and Labrador. This includes companies that provide coverage for auto and home insurance, life, sickness, and accident insurance. According to Valerie Hynes, a lawyer with the insult to Injury Campaign to Protect Accident Victims, the reported $92 million represents an underwriting profit of over 21%.

Hynes pointed out that despite the fact that the insurance industry is complaining about losing money in the province, the report from the province shows about $56 million profit in third-party liability insurance, $35 million profit in property damage insurance and $1 million in accident benefit coverage. She added that even though they want you to believe they are losing money, the latest report shows that the amount collected in auto insurance premiums far exceeds the amount paid out.

However, the vice-president Atlantic of IBC, Amanda Dean, said that Hynes is not considering the operating costs. She said that the $92 million is the difference between claims and premiums but does not include the cost of doing business and so does not indicate profit. It does not include the cost of paying commission to residents working in the industry neither does it include operating costs like power bills, building rents, employee salaries, and provincial and municipal taxes.

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