Banff 
Alberta is freezing insurance rate increases for private passenger vehicles until the end of this year, the provincial government announced today.
Credit: taichi nakamura on Unsplash
The government will also require insurance companies to provide most Albertans with the ability to pay their premiums through payment plans instead of paying annual auto insurance premiums upfront.
According to the press release, the decision follows concerns of Albertans about the “affordability of auto insurance for personal vehicles in light of the current inflation crisis.”
Alberta government in the press release says drivers may still experience rate increases on their renewals in 2023, despite the fact that no new rate increases will be approved for the remainder of this year. This can be a result of previously approved rate changes, changes to driving records including at-fault claims and tickets, or changes to insurance profiles such as a new address or a different vehicle being insured.
The government says that they implemented reforms in the fall of 2020, but some factors such as inflation and supply chain problems for auto parts are currently affecting the immediate impact of these reforms.
Announcing the decision, President of Treasury Board and Minister of Finance, Travis Toews said, “We share Albertans’ concerns about the rising cost of living during the current inflation crisis. We will continue to meet with members of the insurance industry to find additional longer-term solutions for automobile insurance.”
The Insurance Bureau of Canada expressed disappointment in the measure and released a statement which reads, “Alberta’s auto insurers are keen to work with the government and all stakeholders to bring better, more affordable auto insurance options to Alberta’s 2.8 million drivers. To that end, IBC and its members have proposed options that would result in an average of $325 in premium savings for drivers.”
Alberta says it is keeping a close watch on the insurance market and will continue to seek ways to improve it.
Alberta has the highest insurance rates in the country.
