How New Brunswick Auto Insurance Regulations Keep Costs Affordable

The New Brunswick government takes the issue of affordable auto insurance seriously. It passed laws in 2003 to put a cap on the amount of money an accident victim is entitled to collect for pain and suffering following a car accident if the injuries are relatively minor in nature. The cap limits this amount to $2,500 for pain and suffering claims.

Another measure that has been put in place to protect New Brunswick auto insurance buyers is that companies are not permitted to deny a consumer coverage based on one of the following:

  • Age
  • Marital Status
  • Age of the car
  • Not-at-fault accidents

Before this law was passed in 2003, car insurance companies who were trying to save money would routinely deny coverage to drivers who presented what they felt was a slightly elevated level of risk. These people would have to pay a much higher rate for their insurance, and they were forced to seek coverage from the insurer of last resort, the Facility Association.

Another round of reforms was introduced in 2005, which gave new drivers with clean driving records the right to pay a similar amount for their New Brunswick auto insurance coverage as more experienced drivers in the province. The First Chance discount only remains in effect as long as the new driver doesn’t have any traffic violations or at-fault accidents.