Nova Scotia announces changes to auto insurance rules for minor accidents

Nova Scotia’s Department of Finance of Treasury Board announced on Tuesday changes to auto insurance rules that “will help some drivers keep their insurance premiums stable and create consistency in the marketplace.”

According to Finance and Treasury Board Minister Randy Delorey, some drivers were not getting an opportunity to control their insurance premiums because of “inconsistent interpretation of the province’s insurance law. The changes clarify options available to drivers to maintain their auto insurance costs.”

Nova Scotia is the first province to allow voluntary payments, the Department of Finance and Treasury Board said in a statement.

When a driver has a minor at-fault accident without resulting injuries, they may be able to reimburse the insurance company for the cost of the resulting damages, the statement explained. Under the changes, once a voluntary payment is made, the accident is registered as not-at-fault, and doesn’t affect the driver’s record.

“While a common practice for many insurers, some companies felt that Nova Scotia’s insurance law didn’t allow voluntary payments,” the statement said. “This regulation clarifies that drivers can use voluntary payments to control their driving records and insurance ratings due to minor accidents.”