Here is the letter I recieved from my insurance company that came with my heafty bill.
Today's climate of rapidly rising insurance premiums may require some explanation. Rumors on the street and slanted reporting by the Press have done little to explain the situation for our valued clients.
None of us are happy when costs increase but I hope this letter will help you to understand the changes occurring in the Auto Insurance Industry.
Approximately two years ago, our lawyers advised us that we cou;d expect the cost of personal injuries to increase. The amounts of Court Awards would be going up to the levels of awards in other provinces, they counseled. That prediction has, in fact, come true. Minor sore neck injuries which had settled for $2,000 now require $10,000 to $15,000. Then-Thousand-Do;;ar ($10,000) soft tissue injuries have now become $30, 000 to $40,000. It takes a lot of premiums to cover these claims in addition to the usual broken windshields and dented fenders that are part of everyday life.
The wording of the New Brunswick Auto Insurance Policy is Government mandated and we are not able to change the coverage. The only option for us is to adjust the premium charged to our clients. These increases are necessary to honour claims. It is vitally important that we be able to respond when you need us.
In my 30 years' experience in the industry, I have never seen claims and, therefore, premiums rise so sharply. We have been forced to adjust our premium rates three times over the past two years.
We sincerely hope that changes to be introduced by our Provincial Government will help reduce your burden.
If you are interested in more information on this topic, we recommend the IBC web site at www.ibc.ca
or contact your agent.
We want you to know we appreciate your business.