Following a directive from the Régie des services publics asking it to adopt a new model for determining a car owner’s annual premium, MPIhad applied to the Court of Appeal for permission to challenge this decision.
Appeal judge Freda Steel rejected the public insurance company’s claim.
There are two bonus models
The Supply Board, the body responsible for setting fair and reasonable rates, wanted MPItakes over the model of the main driver instead of the current model of the registered owner. The premiums will then be based on the history of the person who drives the vehicle most often.
Régie also asked MPIto give it a five-year plan.
This year MPIhad mentioned that it planned to continue using the current model and that it would not make any changes over the next five years.
The analysis of the main driver’s file of the vehicle is a common practice among car insurance companies in North America, which is also applicable in other provinces, with the exception of Manitoba, Saskatchewan and British Columbia. , according to the Court of Appeal.
What are the consequences for the consumer?
The change requested by the Régie could result in significant savings for lead drivers who have a clean driving record and score high on the driver safety scale.
Drivers at the top of this scale can save up to 37% on their annual insurance.
As for drivers with previous violations or claims, they may not realize any savings at all.
The difference translates into hundreds of dollars in additional insurance costs for the vehicle.
The appellate judge acknowledged that there could be difficulties in implementing the new model, then MPIraised privacy concerns if it were to obtain the identities and driving records of key drivers.
As far as she is concerned, the spokesperson for MPIKristy Rydz, stated that the public insurance company will comply with the decision and that it has provided the information requested by the Régie des services publics.
With information from Austin Grabish