A group looking into New Brunswick's car insurance system is being told the program should be completely changed, not just tweaked.

The New Brunswick Car  Insurance Working Group held public hearings across the province on whether the $2,500 cap on benefits for soft-tissue injuries should be increased and if the definition of minor injuries should be made clearer.

At the last meeting held in Fredericton Wednesday night, there were calls to follow the lead of Newfoundland which deducts $2,500 from insurance claims  no matter what the injury or the size of the payment.

Paula Colter has spent the past two years in pain, both physical and emotional, following a motor vehicle accident that wasn't her fault.

She told the working group that the current system is unfair.

Colter said she's been frustrated and angry at the treatment she's received from the insurance industry, which insists her injuries don't qualify for more than the cap.

"It just feels like you're being victimized twice," she said. "It's not a good system. It's not a good system."

Colter said the Newfoundland insurance program is fairer.

Fredericton lawyer George MacAllister agreed that when the insurance cap system was brought in to reduce premiums, it was applied unfairly.

"Why are the victims  not victims, but only some victims  being asked to bear the burden of low premiums" he asked.

Michel Leger, chairman of the working group, said his mandate is to look at the cap and the definition of injuries, although the final release will likely include comments on a deductible car insurance system.

The cap on court-ordered awards was a product of the former Progressive Conservative government's car insurance reforms in 2003.

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Car insurance rates jump an average of 5.7 percent for drivers who let their policy lapse, according to an Insurance.com analysis of 184,000 policies sold in 2009 and 2010. Following a few simple tips able to keep drivers from needlessly paying more for their car insurance coverage.

In tough economic times, drivers may be tempted to briefly skip paying for car insurance. But Insurance.com has found that pausing provision able to be a costly decision over the long haul because car insurance rates jump for drivers among a policy lapse.

Drivers who let their most recent car insurance provision lapse before purchasing a new policy paid an average of 5.7 percent more for annual provision than drivers who maintained continuous coverage, according to an examination of 184,000 car insurance policies sold through Insurance.com in 2009 and 2010

All drivers in study who had a policy lapse $1,485
Drivers insuring a single vehicle whose previous policy had lapsed paid 8.8 percent more in average annual premium costs than drivers who maintained continuous provision for one vehicle

Drivers among one vehicle who had a policy lapse $1,329
Insurers begin charging higher rates among policies that lapse by as little as one day, according to the Insurance.com data. The penalty is even greater when insuring multiple cars.

Drivers insuring two or more vehicles whose previous policy had lapsed paid 12 percent more in average annual premium costs than drivers who maintained continuous provision for two or more vehicles

Drivers among two vehicles who had a policy lapse $1,994
Dropping car insurance to save a few bucks in the short run able to be very costly over the long run, says Chris Kissell, managing editor of Insurance.com. Its the very essence of penny wise, pound foolish.
There are several reasons insurers raise rates for drivers who have a lapse in coverage. One of which is based on car insurance company research, showing that drivers among a history of letting their policies lapse are more likely to get into accidents.
Each insurance company has its own formula for determining how high rates go after a policy lapses and how long the penalty will remain in place.

Methodology
The average annual premium was calculated by examining 184,534 policies sold through Insurance.com in 2009 and 2010. Rates for drivers who self-releaseed continuous provision were compared among rates for drivers who self-releaseed a policy lapse of at least one day on their previous policy.

http://geicocarinsurance.blogspot.com/

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