The high cost of auto insurance has driven New Brunswick's political leaders into a bidding war, where the lowest premiums and the biggest promises could win the most votes.

What began as a lacklustre campaign has accelerated into a race, thanks largely to the Tory government's inability to control skyrocketing auto insurance rates.

Angry drivers held protests and threatened to boycott the industry by driving without insurance. They signed petitions and wrote letters, demanding the government hold insurance companies to account.

Now, the opposition parties have taken on the issue, promising more help for drivers each day the campaign passes.

The Liberals say they can force rates down by 25 per cent in their first three months in government. The NDP has cleverly launched a bumper-sticker campaign touting its plan to kick private insurers out of the province and build a publicly owned system similar to that of Manitoba.

The Tories say neither plan is possible - but believe their policy of encouraging private companies to lower rates by improving their bottom line will drive premiums down by 15 to 20 per cent by the fall.

Susie Davidson says she can't afford to insure her car

But Fredericton-area Avon sales rep Susie Davidson, who pays $7,000 a year to insure her van, doesn't believe the government has gone far enough. Even if Davidson got the reduction Premier Bernard Lord is promising, she'd still pay $6,000 a year. "I would like to know, I would ask him, how does he expect us to live? If it's going to take three-quarters of our earnings just to pay insurance alone, how do we live? How do we pay property tax, light bills, phone bills? How does he expect us to do this?"

New Brunswick insurance rates began rising in 1997, when the former Liberal government loosened the regulations requiring companies to justify increases to the provincial regulator.

The insurance industry says the sudden jump in rates was necessary to make up for consistent losses in the Atlantic region, the result of lawsuit-happy drivers winning huge injury claims in court.

Whatever the reason, some drivers have seen their insurance bills jump 200 to 300 per cent in the last few years. Other drivers have been dropped by companies because of their age, the age of their vehicle or simply because of where they live. Those drivers are then forced to do business with the insurer of last resort, the Facility Association, which charges sky-high rates most average earners can't afford.

The government's reform package will prevent companies from dropping drivers without good reason, but does little else to guarantee present rates will fall.

The Tory plan caps some personal injury claims, forces companies to justify rate increases of more than three per cent to the Public Utilities Board and gives the PUB the power to investigate companies whose rates appear unfair.

The Tory plan hinges on improving insurance company profits so they'll pass on their savings in the form of lower premiums for drivers. But in the face of continuing criticism from the opposition parties and the driving public, the Tories have upped their ante, promising the Department of

will take on insurance companies on behalf of individual drivers who feel they've been treated unfairly.

Liberal Leader Shawn Graham is taking a tougher position, promising to force insurance companies to lower their rates by 25 per cent within three months of taking office as premier.

Graham wants to legislate companies into opening their books and justifying present and past rate increases. If an independent task force deems the rates are too high, the companies would be required by law to lower them.

"This will require legislative changes that will require the approximate 40 insurance companies in New Brunswick to come before the Premium Reduction Task Force, where a complete review of their books will determine what appropriate reductions will be given to New Brunswickers."

If that doesn't work, Graham has pledged to take a page from the NDP's election platform and create a publicly owned, government-run insurance system - with no private insurers invited.

For her part, New Democratic Party Leader Elizabeth Weir says the government's reform package has been an "abject failure" and the only way to force rates down is to force the industry out. She says a driver-owned, publicly run insurance system would give New Brunswickers more control over their pocketbooks.

"Strong measures must be taken to ensure that New Brunswickers have access to the lowest and fairest insurance rates available, instead of the highest," she says.

It's up to voters to pick the plan they like best, and they might want to wait and see how high the stakes will go, with party leaders courting the electorate with new promises as the campaign progresses.

As for Susie Davidson, she says she's already made up her mind. She doesn't believe the Tory plan does enough for her and is going to punish the government the best way she knows how. "I'm not going to vote for somebody who's in power right now, who's not doing anything for the New Brunswickers. He's looking after all the bigger companies, but it's us poor folk who's not getting anywhere."

RELATED LINKS:

Government announces affordable auto insurance reforms – Department of Justice

Standing up for Affordable Insurance – Liberal Party of New Brunswick