Nova Scotia auto insurance laws clarified for drivers managing premiums
The Nova Scotia government wants to make it clear to all auto insurance companies in the province that drivers who cause minor accidents and then pay for damages themselves can't have their driving records penalized.
In a statement released Tuesday, the province announced it's clarifying a section of its Insurance Act for at-fault drivers involved in accidents that don't result in injuries.
Due to unclear wording in the legislation, some drivers were given the option to control their premiums and others were not, according to Karen Slaunwhite, executive director of the Insurance Brokers Association of Nova Scotia.
The changes took effect Feb. 29.
"It's a wonderful change in favour of consumers because it puts the consumer in a position to manage their costs for insurance," Slaunwhite said.
"Everyone will be treated the same way. So it results in less confusion in the insurance marketplace."
How it works
Direct compensation of property damage -— or DCPD — has been in effect for several years in Nova Scotia. Under that system, auto insurance companies pay damages on the vehicles for their own respective clients. The at-fault driver's record would then reflect the incident.
Under the refined regulations, however, those at fault can offer the other driver's insurer a payment before or after a claim has been filed. If an at-fault driver pays the damages, their record won't be hurt.
"It's another mechanism for people to understand their insurance and to get involved mitigating their risk and their behaviour," said Amanda Dean, vice-president of the Atlantic division of the Insurance Bureau of Canada.
She says the provincial government had been trying to update this regulation "for some time."
There are still some administrative hurdles to clear through the province's insurance superintendent, Dean says, to make sure the regulation is applied properly — such as the window of time the at-fault driver can make a payment.
Until then, it will be up to the insurance companies to figure out how the smaller parts of this new mechanism will work.
"I believe it will unfold relatively quickly," Dean said.
