Consumer Advocate Releases Final Report

A report released today, Sept. 24, by consumer advocate George Jordan outlines his recommendations to help make auto insurance more affordable, more accessible, and more transparent for Nova Scotia consumers.

In his report, Mr. Jordan says government should provide more education to consumers, establish better regulations and controls on the insurance industry and study the possibility of setting up a variety of insurance policy options from which consumers could choose. He also agrees with government's plans to set up a separate board to review and approve insurance rates and to reduce rates through the introduction of a basic insurance package that caps pain and suffering awards for minor injuries.

Mr. Jordan emphasized the role consumers can play in improving their own premiums. He said he was amazed at the number of consumers who don't shop around, or who simply don't understand what they're getting for the money they spend. He went on to stress the importance of safe driving habits in avoiding accidents, and therefore avoiding rate increases.

"I believe that government must do something to provide Nova Scotians with rate relief, since it has become virtually unaffordable for some drivers," he said. "I believe there are other things consumers can do to help curb the rising cost of auto insurance. Driving is an inherently risky activity. And while it's the role of insurance companies to insure that risk, we can all play a part in controlling costs by driving safe and by making smart choices when it comes to buying insurance."

The report is the culmination of six months of study and consultation with more than 3,000 Nova Scotia consumers, business people, industry representatives and others with an interest in the rising cost of auto insurance premiums.

Appointed on April 11, 2003, the consumer advocate was responsible for researching issues and proposals on auto insurance, and for assisting in the development of policies that will help consumers.

Copies of the Consumer Advocate Final Report will be available on the insurance page of the Environment and Labour Web site at http://www.gov.ns.ca/enla/fin/fininst.htm or by calling the consumer advocate at 902-424-2794.