A new study by Halifax insurance company BHP Billiton has found that the cheapest personal car insurance plan available to consumers in the city will cost between $300 and $700 more than the most expensive option available from the major insurance companies.
The BHP study is the first of its kind to show how the city’s personal car coverage is going to change in 2019.
“If you’ve got a $400,000 vehicle, you’re looking at a $700 increase,” said Rob MacDonald, CEO of Halifax Carinsurance, a major car insurer.
“We’re going to see more people with a $300,000 car going into the market and more people wanting the option to get into the affordable option.”
Car insurance company says price hikes are inevitable in 2019The Halifax insurance group surveyed about 2,000 people and found that, for the first time in five years, the average annual cost of a personal car is expected to increase to about $600 by the end of 2019.
The average cost of car insurance for an average male driver will be $2,100.
MacDonald says the average cost for a woman is about $800, and a child is likely to see an average of about $700.
“I think the average driver, for all drivers, is going have a cost of about three times what they would have seen in the past,” MacDonald said.
“There are a number of reasons why.
One is, if you’re a driver who is going into a new market, and you’re on a new car, and your rates are going to go up, you may need to switch your insurance provider.
So we’ve seen that in recent years.”
The company says the costs of a typical vehicle in Halifax will rise from $700 in 2019 to about half that amount this year, a cost that will rise to about seven times the average premium.
MacDonald said the price hikes will be a challenge for drivers and the city is already struggling with the cost of living in the Greater Toronto Area.
“There are still a lot of costs that we have to deal with.
It’s going not only a cost to the city, but it’s going into your pockets.”””
That’s going to be an issue.
It’s going not only a cost to the city, but it’s going into your pockets.””
We’ll have to do a better job of ensuring that we don’t have people on a lot fewer than usual car insurance policies.”
The study also found that many people in the province will see their car insurance premiums increase.
In 2019, the total average rate for a new insured vehicle is expected for a man to be about $2.75 per kilometre, and for a child about $1.60.
MacDonald expects that the price of a single adult’s car insurance would increase to $3,100 in 2019, which will increase to over $6,000 in 2021.
MacDonald points out that there are other factors that can affect the cost, like when your car insurance policy is cancelled or when your policy is changed.
“The fact that you’re getting a price increase for the next year, or the year after that, it’s not something that you can easily control,” he said.
“We’re certainly going to have to make some changes in how we do things in order to ensure that we can keep the same level of coverage for everyone.”
The report says people in Halifax should be able to shop around and consider whether they are a good fit for the city.
“You can go to any of the regional or municipal agencies and see who’s out there,” MacDonald explained.
“And then you can make sure you’re shopping around, whether you’re going into that new insurance marketplace or whether you might be looking at another provider.”
MacDonald says some of the cheapest insurance plans will be available in the suburbs.
“If you’re in the centre of Halifax, you can have a really good, affordable, affordable policy.
You don’t need to worry about that.
And that’s what we want.”