Government Pleased Co-operators to Lower Insurance Rates

ENVIRONMENT/LABOUR--Government Pleased Co-operators to Lower Insurance Rates

Environment and Labour Minister Ron Russell expressed satisfaction today, July 4, with the progress being made toward lower auto insurance rates in Nova Scotia.

"I'm very pleased to see that the Co-operators Insurance Company is taking a leadership role in its industry and is responding to our plan in a way that directly benefits Nova Scotians," said Mr. Russell. "It has committed to lowering rates when we limit awards for minor injuries, just like it did in New Brunswick."

Mr. Russell said Co-operators has applied to lower its liability premiums by 25 per cent in New Brunswick and government anticipates similar savings will be passed to Nova Scotians once the minor injury award limit is finalized.

"This is very good news for Nova Scotia motorists. I think it's fair to expect other insurance companies to follow suit."

The minor injury award limit is part of the government's six- part plan to reduce auto insurance premiums by an average of 20 per cent.

"As well, on Aug. 1, regulations prohibiting unfair discrimination by insurance companies against drivers based on age, sex, marital status, vehicle age, lapse of coverage, or not- at-fault accidents come into effect." Mr. Russell said he anticipates these changes will mean significant savings for Nova Scotians who will be removed from Facility Association, the insurer of last resort for high-risk cases.