Alberta’s Mandatory Auto Insurance Coverage to Increase by 5%
Alberta, Canada – Auto insurance in the province of Alberta is mandatory and has been since 2004 when landmark legislation was passed requiring all drivers to carry coverage.
That has led to car insurance rates going down over the past eight years but this year a 5% rate increase will take effect.
The increase was announced by the Alberta Insurance Rate Board which regulates increases. It’s expected that this will amount to an annual increase of approximately $30 per driver. Consumers may not be happy about any increase whatsoever but they can take consolation in two facts:
1. Despite the 5% rate increase, overall rates are down 13% since passage of the auto insurance reform.
2. The Insurance Bureau of Canada was requesting a steep 37% rate increase
So all in all, consumers have some things to be grateful for.
The Board Chairman for the Insurance Rate Board, Alf Savage, said:
“We knew that increase would be necessary, but we wanted to take a more measured approach in order to maintain balance in the system,” said AIRB chair Alfred Savage.
“A 5% increase, which works out to about $30 a year, reflects the current insurance trends while still keeping premiums at a reasonable level.”
The decision applies only to mandatory coverage