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What the Proposed Auto Insurance Reform Means for You

By April 18, 2019June 21st, 2021Personal Insurance
Auto Insurance Reform

The government recently unveiled a series of reforms to auto insurance. We want to help you understand what they mean to you, so we’ve graded the reforms in the areas to address where they have implemented changes.

What’s Impacted?

There are 3 areas impacted by this legislation:

  1. Cost
  2. Claims Handling
  3. Regulation


There are some positive changes in this report which will be of benefit to you, particularly elimination of the sales tax, changes to the way claims are handled and paid and regulation.

On the other hand, there were no changes made that will substantively address the continuing increases in cost over time, which given economic challenges in Newfoundland and Labrador, will continue to be a challenge for our clients and their pocketbooks.

The new legislation mandates a review of auto insurance every 5 years, so we hope more reform around costs can be included in the next review.

Pass or Fail: Giving out the Grades

Below we break down each proposed change and grade them. We are grading them based on the impact they may have on the cost of your insurance, improved claims or client experience, and improved operating environment for insurers.

The Grades

Header photo credit: Andrew Hawthorne / Twitter

Author Jamie Ross

Jamie Ross leads the Marketing and Communications team at Wedgwood Insurance, renowned as one of Atlantic Canada’s premier independent insurance brokers. Bringing a wealth of experience amassed over many years at some of Canada's most esteemed advertising agencies, Jamie transitioned to the insurance industry in 2017. This pivotal move has marked a period of significant professional growth and contribution to the field. A native Nova Scotian, Jamie has been a resident of St. John's, NL, since 2011, where he has become an integral part of the local community. Learn more about Jamie.

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