The P.E.I. government has increased the levy it charges companies providing automobile insurance.
The levy is up more than $10 a vehicle, retroactive to January of this year. It is designed to help the province recover the health care costs of accident victims who are not at fault.
"The annual adjustment factors weren't increasing the levy quickly enough to keep pace with the rising health care costs," said Robert Bradley, provincial superintendent of insurance.
"The province commissioned a study to find out just what those health care costs were. And once you figure out the costs, you get the levy by simply dividing the total costs with the total of insured vehicles in the province."
It's up to individual insurance companies to decide if they want to pass the extra cost on to customers.
The levy is now just slightly over $32 per vehicle. The change is expected to bring in an extra $1 million to $1.2 million a year to the province.