Nova Scotia’s Regulatory and Appeals Board has approved TD Home and Auto Insurance Company’s request to lower its eligible renewal-increase cap from 15% to 10%, alongside an overall automobile rate increase.

The November 6 decision, 2026 NSRAB 155, approves changes effective December 14, 2026, for new business and January 29, 2027, for renewal business.

The approved rate changes vary by coverage and produce an overall increase of 1.5% before capping. The overall change rises to 1.55% after the renewal-capping rules are applied. Those portfolio figures do not mean every policyholder’s premium will increase by that amount.

Private passenger vehicles are the main subject of the application. Motorhomes and historic vehicles are also affected because their premiums depend on private-passenger rates.

Smaller increases, but a limit on decreases remains

The decision describes TD Home and Auto’s existing cap as applying per vehicle where there are no new at-fault accidents. Under the approved proposal, the increase limit falls to 10%, while the rule limiting renewal premium reductions to 5% remains unchanged.

That downward limit matters to customers who would otherwise receive a larger reduction. The board described its requirement that the premium impact of limiting decreases must not exceed the impact of limiting increases.

Here, the capped overall change is 0.05 percentage points above the uncapped change. TD Home and Auto argued that the difference affected a small portfolio and had a low monetary impact. It also said keeping a common capping framework with Security National Insurance Company and Primmum Insurance Company avoided extra implementation work for this small book of business.

Board staff recommended approval of the cap changes, and member M. Kathleen McManus agreed.

Expedited rate review

The application qualified for expedited consideration under section 155H of the Insurance Act because the combined rate change was within the board’s 5% threshold.

The insurer relied on updated residual rate indications from its previous application. Most proposed changes were below the associated indications. The comprehensive-coverage increase was slightly above its indication, a difference the board considered monetarily insignificant.

The board accepted a projected return on equity below its allowed 10% to 12% range because the change would narrow the gap. It found the rates just and reasonable and unlikely to impair the insurer’s solvency.

The company’s mandatory filing date remains August 1, 2027. The reasons state that a separate order will issue.