Why Nova Scotians shouldn’t expect car insurance premiums to go down any time soon

While the number of car accidents in Nova Scotia remains steady, vehicle insurance premiums are rising significantly because the cost of repairing modern vehicles is skyrocketing.

“This is more than just a blip,” said Amanda Dean, vice-president Atlantic of the Insurance Bureau of Canada. “It’s becoming a trend when we look over the past number of years.”

Dean said the number of accidents is “pretty static,” but what’s changing is the cost of repairing the new technology built into cars.

She used the example of a bumper, which used to cost about $250 to replace, but now with sensors and electronics being damaged even in fender benders, the replacement cost is in the thousands of dollars.

Dean said the average premium in Nova Scotia in 2018 was $891 per year, with 85 percent of that going directly to pay for damage claims.

Article by Preston Mulligan – CBC News, published on February 05, 2020. Read Complete Article: https://www.cbc.ca/amp/1.5451891

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