POLL: Newfoundland and Labrador drivers demand more choice, relief from rising auto insurance rates
May 14, 2018 (St. John’s) – Demand for relief from rising costs and deep dissatisfaction with the status quo dominate a new public opinion poll about auto insurance conducted with Newfoundland and Labrador drivers.
The bottom line? It seems that very few drivers in the province are happy with the way the auto insurance system is working for them right now.
“The system is broken and insurers, government and other stakeholders need to work together to fix it. This poll shows that as auto insurance premiums increase, drivers are not seeing an increase in value. We all can – and we must – do much better for the drivers of Newfoundland and Labrador,” said Gordon Murray, Vice President of Broker Distribution, Atlantic, for Aviva Canada.
Newfoundland and Labrador drivers pay the highest auto insurance premium rates in the Atlantic Region – $1,090 per year on average. Premiums increased by 22.4 per cent from 2008 to 2016, compared to 11 per cent at the same time in the other Atlantic provinces.
In the poll released today, 63 per cent of Newfoundland and Labrador drivers say auto insurance has become “financially difficult” to pay for, while 83 per cent said they noticed how fast the cost of auto insurance premiums has been rising.
Aviva’s poll of Newfoundland and Labrador drivers also found:
- Half of drivers wish there was more competition in the marketplace among
insurers to drive premiums down.
- 90 per cent of drivers want more choices about their insurance coverage to reduce the premium they pay.
- Four out of five drivers polled were not aware that 95 per cent of insured Newfoundland and Labrador drivers have never made an injury claim.
- Two-thirds of drivers favour a cap on pain and suffering claims, if it results in lower premiums.
- Seven in 10 drivers favour the choice of optional tort* right to recover damages, which lowers premiums while still allowing those injured in an accident to receive compensation for medical and other accident-related expenses like lost wages.
- Eight in 10 drivers favour a cap on legal contingency fees.
In addition, more than two-thirds (69%) of respondents felt that uninsured drivers have a big impact on car insurance rates. Meanwhile, the report shows widespread support for insurance premiums to be based on one’s driving and claim history.
The Oliver Wyman Report reinforces the point that auto insurance isn’t working for consumers or insurers. Aviva will soon be releasing our proposed solutions to ensure the long-term sustainability of auto insurance in the province.
Aviva Canada Inc.
Mobile: 437 346 1924
Notes to editors:
- A full copy of the new poll conducted among Newfoundland and Labrador Drivers by MQO Research is available here. The poll, conducted between April 15 and April 30, 2018, among 400 Newfoundland and Labrador residents, is considered accurate within plus or minus 4.9 percentage points, 19 times in 20.
- *Optional Tort is making the right to sue for pain/suffering an optional benefit that customers can purchase as part of their auto insurance policy. This would have no impact on income replacement, health care or other standard benefits but would result in a lower premium for those who choose not to add the right to sue for pain and suffering.
About Aviva Canada
Aviva Canada is one of the leading property and casualty insurance groups in the country, providing home, automobile, leisure/lifestyle and business insurance to 2.8 million customers. A subsidiary of UK-based Aviva plc, Aviva Canada has more than 4,000 employees focused on creating a bright and sustainable future for our customers and our communities.
Aviva Canada invests in positive change through the Aviva Community Fund, Canada’s longest running online community funding competition. Since its inception in 2009, the Aviva Community Fund has awarded $8.5 million to over 280 charities and community groups nationwide. Aviva Canada, bringing over 300 years of good thinking and insurance solutions to Canadians from coast-to-coast.