The provincial government is eliminating the tax on auto insurance effective immediately, Premier Dwight Ball announced Monday.
The budget measure comes at the same time the government is introducing new legislation on auto insurance. Some of the key changes to the legislation include an increase in the deductible from $2,500 to $5,000 for bodily injury claims; introduction of treatment protocols for common injuries as the primary payer; no access to the Uninsured Automobile Fund for losses by uninsured motorists; direct compensation for property damage; requirement for insurance companies to notify the Registrar of Motor Vehicles of the cancellation or expiration of insurance policies; and changes to procedural rules for motor vehicle collision claims.
Proposed amendments will also provide a mandated insurance discount for winter tire usage, implementation of underwriting guidelines concerning the optional use of telematics, and changes to the rate setting process.
In addition, as part of Budget 2019 the Provincial Government will eliminate the remaining tax on automobile insurance. More details will be provided on Budget Day.