March 24, 2006
SAINT JOHN (CNB) - Due to recent media coverage, the New Brunswick Insurance Board (NBIB) wishes to confirm the facts released on Nov. 3, 2005, and in particular confirm that the average premium for those companies writing standard-risk automobile-insurance policies in New Brunswick is $851. This figure is $142 less than under a model proposed by the legislative assembly's Select Committee on Public Automobile Insurance in April 2004.
The method of calculation for this number is based on dividing total automobile premiums by the number of insured vehicles. The NBIB has had the methodology and the result analyzed and certified by two independent nationally recognized actuarial firms.
The NBIB released 39 decisions on companies writing private passenger insurance in New Brunswick on Nov. 3, 2005. The average premium represents 92 per cent of the premiums written for standard-risk private-passenger policies in New Brunswick. This was a decrease of 11.3 per cent from the rates filed for 2005. Average proposed premiums for 2006 are lower than for 2001.
The NBIB encourages New Brunswick consumers to continue to shop around to find the lowest rates available to them.
MEDIA CONTACT: Kevin Duff, New Brunswick Insurance Board, 506-647-7819.