Thursday, September 09, 2010
Frequently
Asked Questions
Auto Insurance Rate Regulation
This is the first in a series of FAQs on auto insurance
Initially published: February, 2006
In 2005, the
Commission reviewed the rates of 32 insurers. Rates again decreased
— on a weighted average basis — by a further 4% to 5%.
On an
industry-wide basis in the province, rates have reduced by these
amounts. However, since rates are a product of many factors -
including vehicle age and type, age and driving record of the
driver(s), and other factors, rate changes for individual drivers
will have varied.
It is noted, as
well, that there are broad differences in the rates charged by
different insurers for similar insurance coverage. In some cases,
companies that reduced rates by the above amounts still had higher
average rates than companies that reduced rates by lesser amounts.
Below is a table that shows average rate changes, by insurer, for
the years 2004 to 2006. In reviewing this table, care should be
taken not to equate percentage reductions with overall insurance
costs. 4. I've compared my bills over the last two years and I
don't appear to be receiving the indicated reductions. If the
explanation is not clear, you can write to the Commission. The
Commission will contact your insurer and obtain a written
explanation.
Last
Reviewed or Updated :
2008-05-07
rate regulation in Prince Edward Island.
The following FAQs are intended as a general guide
to auto insurance rate regulation in Prince Edward Island.
Additional FAQs are under development.
1. When was auto insurance rate regulation introduced in
PEI?
In December of 2003, amendments to auto insurance legislation came
into effect in Prince Edward Island that imposed a limit of $2,500
on minor personal injury claims. The amendments also introduced auto
insurance rate regulation in the Province and mandated that all
insurers must seek Commission authorization for rate changes. Each
insurer must now file its rates for the review of the Commission at
least once every twelve months.
2. Has the imposition of limits on minor injury claims
resulted in lower auto insurance rates?
Yes. In 2004, the Commission reviewed the rates of 31 insurers. On
a weighted average basis, insurance rates decreased by
approximately 10%. Rates for third-party liability coverage
decreased by more than this.
3.
Does this mean that
everyone's rates have reduced by these amounts?
Insurer
Total Rate Reduction
2004 - 2006
Aviva Insurance Company of Canada
16.8%
CAA Insurance Company (Ontario)
13.0%
Co-operators General Insurance Company
27.8%
Coseco Insurance Company
14.7%
The Dominion of Canada General Insurance Company
21.2%
Echelon Insurance Company
0.0%
Economical Mutual Insurance Company
29.5%
Elite Insurance Company
10.3%
Federated Insurance Company of Canada
13.0%
ING Insurance Company of Canada
19.8%
The Insurance Company of Prince Edward Island
18.9%
Lombard General Insurance & the Tokio Marine &
Fire
4.4%
Market Insurance Company of Canada
10.3%
The Personal Insurance Company
0.0%
The Portage La Prairie Mutual Insurance Company
17.7%
Primmum Insurance
0.00%
RBC General Insurance Company
25.6%
Royal & Sun Alliance Insurance Company of Canada
9.9%
Security National
0.00%
The Sovereign General Insurance Company
21.3%
TD Home & Auto/Formerly Liberty Insurance
Company
13.9%
Traders General Insurance Company
12.0%
Trafalgar Insurance Company of Canada
17.5%
Unifund Assurance Company
19.9%
Waterloo Insurance Company
21.6%
The Wawanesa Mutual Insurance Company
30.7%
Zurich Insurance Company
0.00%
Facility Association
2.5%
Check with your
agent or broker. He or she should be able to fully explain your
bill.
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