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  • Province Eliminating Auto Insurance Tax in Budget, Overhauling Insurance Act

    Premier Dwight Ball announced today that as part of Budget 2019 they are eliminating the remaining tax on automobile insurance. That’s just one of the changes announced today.

    The provincial government has decided against imposing a cap on insurance claims for pain and suffering.

    The industry wanted a to keep costs down while victims and lawyers argued against such a measure. Instead, government is going to increase the deductible to $5,000 from the current $2,500. The average claim for pain and suffering pays out $25,000.

    The Automobile Insurance Act is being overhauled. It also aims to reduce the number of uninsured drivers as companies will have to notify Motor Vehicle when a policy has been cancelled. Motor Vehicle can then inform police.

    It will now be possible for taxi and other high-risk drivers to negotiate with insurance companies rather than go through the more expensive Facilities Association.

    There will be a specific health and treatment protocol laid out and government will look at having dedicated license plates for life.

    Auto insurance rates in NL are the highest of all Atlantic Provinces.

    View current progress on Bills in the House of Assembly at this link.

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