Many Alberta drivers will soon be paying more to insure their vehicles and in some cases an awful lot more. In August, the Alberta government announced it would not be renewing the four-year old rate cap on auto insurance premiums and now the insurance companies are playing catch up.
Aviva Canada, one of the country’s largest auto insurers has indicated an across the board increase of 15 percent starting in January 2020. For some motorists, depending on their driving record, the increase could be even higher. Other insurers are expected to follow suit.
Celyeste Power, the Insurance Bureau of Canada’s Western vice-president told Global News, that companies have little choice but to jack up rates considering how claims in Alberta continue to rise.
“Insurers have actually been losing about 12 cents, on average, on every dollar that they’ve been taking in right now,” Power said. “So they’ve been paying $1.12 for every $1 they’re taking in.”
The industry cites higher vehicle repair costs, more expensive injury claims and less choice in the marketplace as reasons for the rate increase.
Industry officials say it’s more important than ever to shop around to get the best rate.