Auto insurance rates are going up on P.E.I.

Auto insurance rates have risen between three and five per cent on P.E.I. so far this year.

The Island Regulatory and Appeals commission says it's partly because of technological advances in vehicles like rear back-up cameras, side airbags and collision avoidance systems.

Allison MacEwen, director of regulatory services, said though these advances have made vehicles safer, "there is an incremental cost to repairing those vehicles when they're damaged."

MacEwen said vehicles are often more difficult to repair as damaged parts can involve having to replace several other pieces to get features working again. Those repairs also take more time and effort.

Rates low compared to neighbouring provinces

While P.E.I. is seeing an increase, the commission said it hasn't seen any applications from companies this year that compare to those seen in New Brunswick and Nova Scotia. 

Two of New Brunswick's biggest auto insurers began implementing rate hikes on customers of up to 35 per cent over the weekend.

In Nova Scotia, one company recently applied for — and was granted approval — to raise its car insurance rates in that province by 50 per cent.

MacEwen said that's because P.E.I. has a smaller population and lower speed limits on highways, which can reduce the number of accidents.

Also, while there are increases in cases of distracted driving in other jurisdictions, MacEwen said the opposite is true on the Island.

"There is a lot of public awareness … that distracted driving and unauthorized use of cellphones is certainly frowned upon and can be very costly if one is convicted," MacEwen said.

Insurers have to justify their rates to IRAC once a year, even if they are not going to adjust them. Companies can apply for rate increases anytime, but MacEwen said most choose to make applications earlier in the year. 

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