Auto insurance premiums going up with increased benefits

Prince Edward Islanders can expect to see increases in their auto insurance premiums, says the Island Regulatory and Appeals Commission.

IRAC is getting requests from auto insurance companies for premium increases to cover changes in accident benefits that came into effect in the province in October 2014.

• P.E.I. to raise cap on auto insurance payouts

Director of regulatory services Allison MacEwen said people can expect about a 20 per cent increase in their Section B premiums. That covers payouts for rehab after an accident that doubled from $25,000 to $50,000, and the cap for minor personal injury tripling from $2,500 to $7,500.

Catching up with other provinces

MacEwen said before the changes P.E.I. had the lowest coverage in the country.

"Those were primarily to bring us in line with other provinces," he said.

"Our payout rates were lagging behind some of the other jurisdictions and we are just starting to see some of the companies apply for increases, primarily because of the increased payouts."

IRAC has not received any complaints about the increases yet, said MacEwen, but expects some calls when more people start seeing it.

MacEwen said the increased premiums will be about $10 a year for the average driver, while the increased benefits will be useful for victims of accidents.

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