The new regulations aim to reduce the cost of auto insurance and speed up the payment of property damage claims.

New rating for calculating premiums

With the removal of age and marital status as rating factors, driving experience becomes the main rating criteria to establish premiums.

First Chance Discount

New drivers are those who have received their license within the past six years. The definition is not restricted to those licensed after January 1, 2005 but applies to anyone licensed in New Brunswick in the past six years. New drivers can have their own policy or be included as occasional drivers on their parents’ policy.

The First Chance Discount is a driving experience credit. A new driver, who has successfully passed an approved driver training course and is conviction and at-fault accident-free, will benefit from the equivalent of six (6) years driving experience. Without the approved driver training, the credit is equivalent to three (3) years.

A new driver will lose these credits when experiencing a first at-fault accident or any conviction, such as a speeding ticket.

Direct Compensation

Direct Compensation means that insureds will receive compensation from their own insurance company for property damage caused by a third party. Before, an insurance company had to solicit the third party’s insurer to recover the costs of repairs, which meant a delay in compensating their own insured.

It is important to note that the concept of a driver’s fault remains but the new procedure will simply accelerate the payment of claims. Fault will be determined by a fault determination chart adopted by the Government of New Brunswick. The right to sue for damages other than property damage are maintained under the current tort system.

Please contact a member of our clients services team should you have any questions.