The truth about auto insurance in Alberta
Everyone wants an auto insurance system that works well for Alberta’s 3 million drivers. Recent reforms and the introduction of DCPD are a good start – and these are helping to stabilize rates.
In fact, we are already seeing rates decrease in the province.
The most recent data from the Alberta Auto Insurance Rate Board – the government’s insurance regulator – shows rate approvals have remained stable over the past 12 months.
Similarly, the General Insurance Statistical Agency’s (GISA) data also indicates average premiums in Alberta declined by 1.1% over the last 12 months (January to January). GISA is a national body of insurance regulators specifically tasked with monitoring insurance premiums in the country.
Even with record inflation, auto insurance premiums are one of the few things not adding to the increased cost of living. Statistics Canada’s data shows that auto insurance premiums declined 6.5% across Canada over the last year. This, despite the cost of vehicle parts increasing by 5%, the price for new vehicles up 7% and the cost for rental cars up 19.4% (which drives up the cost of claims) and an overall inflation rate of 6.7% in March.
Over the course of the pandemic, the insurance industry provided $3.7 billion in financial relief to home, auto and commercial consumers – a significant and unmatched effort by insurers to help Canadians when they needed it most. In Alberta alone, the industry provided over $460 million in premium relief back to their customers.