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7/29/2010
UPDATE: Drivers are getting a break on auto insurance.
Following its annual review of rates, the Automobile Insurance Rate Board is directing insurers to reduce premiums on mandatory insurance by 5%. This will save drivers, on average, $30. It takes effect November 1st.
The board expects drivers to be good, so the rates are going down.
"This reduction is primarily the result of a projected decline in the number of bodily injury claims in the province this coming year," said board chair Alfred Savage in a release Thursday.
The Insurance Bureau of Canada has some concerns with the decision.
"It is critical to remember that the most important goal of any auto insurance system must be to ensure consumers are well-served by a healthy and competitive marketplace," said the bureau, in a release of its own. "This means, in part, maintaining premiums that are affordable for drivers, but are also adequate enough to keep the insurance companies solvent and able to pay claims."
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