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April 27, 2007
For immediate release

Government Announces "Stay Safe New Driver Discount" for Inexperienced Drivers

Office of the Attorney General

Attorney General Mildred Dover today announced the planned implementation of a “Stay Safe New Driver Discount” for inexperienced drivers who typically face high automobile insurance rates. Government has consulted and worked with the insurance industry to facilitate the introduction of discounted auto insurance rates for inexperienced drivers who maintain a clean driving record.

“The discount will be of direct financial benefit to many new drivers who are insuring their own vehicles,” said Attorney General Mildred Dover. “It may mean the difference between having or not having adequate transportation for the family.”

This new insurance rate discount will give new drivers incentive to drive safely. The Stay Safe Discount will be available to any new principal driver with a clean record who, simply due to a lack of years driving, has not had the opportunity to obtain a favorable experience rating from insurers. By driving safely and avoiding preventable accidents, new drivers will be rewarded by remaining eligible for the discounted rates.

Incidents such as at-fault claims, driving related convictions and licence suspensions will result in the individual no longer being eligible for the discount. Drivers whose actions make them no longer eligible for the discount will likely face rates which are substantially higher than the discounted rates. The discount is a chance for inexperienced drivers to continue to enjoy discounted auto insurance rates, by staying safe while they drive.

“We believe this new discount will work well in conjunction with our new Graduated Driver Licensing Program,” said Attorney General Mildred Dover. “New drivers will be provided the training, structure and incentive that they need to stay safe while driving.”

It is expected the “Stay Safe New Driver Discount” will be in place by January 2008.


Work to implement the Discount will commence immediately.

• The insurance industry will implement a process to ensure the costs of the discount are shared equitably.

• Insurers will develop and file rates with the Island Regulatory and Appeals Commission.

• Under the law, insurers must wait at least 60 days after filing before their new rates may come into effect.

• Insurers will refine their underwriting processes and ensure their Agents and Brokers are fully equipped to offer the Discount efficiently and effectively.

• Once industry has taken satisfactory steps to implement the Stay Safe New Driver Discount, government will be in a position to give its final approval.

• Insurers have told government that they will begin to develop their Stay Safe New Driver Discount rates as soon as possible, expected to come into effect on or before January 2008.

Media Contact: Connie McNeill
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