New Brunswick increases territories to 11

In an on-going commitment to ensuring that residents in New Brunswick have fair and affordable insurance premiums, the government has introduced a new 11-territory insurance rating system. Eleven new territories will replace the current, outdated four territories, T.J. Burke, justice and consumer affairs minister, said in a release. The previous territories were based on arbitrary lines drawn on a map with no actual hard data used to support them. The new territories were created based on relevant factors such as traffic patterns and vehicle density, terrain, road conditions, speed limits, crime rates and weather conditions and will create a fairer system for assessing New Brunswick drivers insurance premiums.Rates are determined using territories, the insureds driving record, the CLEAR rating of the vehicle, the use of the vehicle and the number of kilometers the car is driven. Age, gender and marital status have been eliminated from the ratings, according to the release.It is important the drivers understand that just because you live in an area that has higher claims costs, it does not mean your premium will automatically increase, Burke said. Territories are only one factor used to determine premiums. Good drivers will continue to see fair and affordable premiums. The new territories which will be reviewed periodically to ensure they reflect demographic change, highway construction and other relevant factors will be used in 2008 filings.