Left Navigation Premium problems in NL Why are premiums so high in NL? Simply put, claims costs in NL are too high. In fact, the average claims cost per vehicle in the province is by far and away, much higher than in the Maritimes. The nature of auto insurance is about spreading risk across a large group of people to make it affordable to provide coverage for the small number of people who may be involved in a collision. In NL, however, claim costs are simply too high. In 2015, the claim cost per vehicle were $852 whereas in NS, NB, and PEI it was $631, $630, and $519 respectively. This shows the claim cost per vehicle in NL much higher than in the Maritimes. Besides claims costs, the frequency of claims in the province is also concerning. The nature of auto insurance is about spreading risk across a large group of people to make it affordable to provide coverage for the small number of people who may be involved in a collision. In 2016 claims frequency was 13.08 vehicles per 100 in NL. In the neighbouring provinces, it was 10.79. That is a large difference when you consider that the population of NL is approximately 500,000, which is roughly the same population as Halifax, NS. A higher frequency in a smaller jurisdiction means that something is not working with the current system. Reforms are needed to get the auto insurance system back to sustainable levels for all drivers.In the late 1990s and early 2000s, the cost of insurance claims in Atlantic Canada was increasing faster than inflation. This caused premiums to rise. To help lower premiums, the Maritime governments introduced a limit, or cap, on pain and suffering awards for people with minor injuries like sprains and strains. NL chose a $2,500 deductible instead. Impact on drivers, beyond premiumsHigh premiums are only one part of the problem affecting Newfoundlanders and Labradorians. With two insurance companies having left the province in the last five years, and only three insurance companies servicing most (76%) of the NL auto insurance market, drivers have very little choice.With insurance companies spread too thin across the province, drivers involved in collisions may have trouble getting insurance. People who are injured in collisions may experience delays with their settlements. What can I do?Speak out. Contact your member of the House of Assembly, Superintendent of Insurance, General Insurance Ombudsman and Public Utilities Board to request that auto insurance reforms be made a priority.Tell us your auto insurance story at NLAuto@ibc.ca. All About Auto InsuranceRegardless of where you live in Canada, auto insurance is required by law. You are not authorized to drive without it. Related ServicesHow Car Insurance Premiums are CalculatedThe make, model and year of your car, the records of people who are insured to drive it and where you live are all considered by insurers when setting rates. You can lower your premium by making informed decisions.Types of Auto Insurance CoverageCollision, specified perils, comprehensive and all perils are among the additional coverages available for your vehicle. In general, these coverages are very similar across the country. Useful LinksInsurance BasicsWithout insurance, driving a car, buying a home or starting a business would be an unaffordable risk.Insurance-Buying TipsInsurance is a significant investment. Before you purchase coverage, getting answers to key questions can help you make informed decisions. Crisis ManagementIf you find yourself in a crisis situation, never admit liability. Facility AssociationFacility Association’s mission is to administer the automobile insurance residual markets, enhance market stability, and guarantee the availability of automobile insurance to those eligible to obtain it.