The provincial government announced that it will be pausing private passenger vehicle insurance rate increases through the end of 2023.
While no new rate increases will be approved for the remainder of this year, some Alberta drivers may still see rate increases on their renewals in 2023. This may be due to 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.
Citing the fact that the government has heard residents concerned about the affordability of auto insurance for personal vehicles in light of the current inflation crisis, the province added that government will continue developing short- and long-term solutions to steady and lower auto insurance rates.
“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," said Minister of Finance Travis Toews.
To help address concerns about those struggling to pay their annual auto insurance premiums upfront, the government is requiring insurance companies to provide most Albertans with the ability to pay their premiums through payment plans.
"Alberta’s government implemented reforms in the fall of 2020, which are expected to further stabilize rates. However, factors such as inflation and supply chain issues for auto parts have impacted the effect of reforms in the short term," a press release from the province stated.
Earlier this year, a report published by Ernst & Young LLP showed that Albertans are paying some of the highest prices for automobile insurance anywhere in the country.
According to the report, insurance rates for the 27 automobile insurance customer profiles were sampled for two to five cities from provinces across Canada. The Alberta cities which were compared included Calgary, Red Deer, Grand Prairie, and Edmonton. The report compared eight different driver profiles. In comparing an 18-year-old male driver in Alberta who drives a 2012 Honda Civic LX with a Stage 2 learners license who had no convictions and was claim free, with an annual commute of 15,000 kilometres can expect to pay $6,140 in Calgary for auto insurance, while in Edmonton that same driver could pay upwards up $6,471.