CALGARY — A new report released by LowestRates.ca on Tuesday shows Alberta saw a drop of 3.6 percent in automobile insurance premiums for the first quarter of 2021.
However they still remain nearly 15 percent higher, year over year.
“Now it’s reached an equilibrium, or close to reaching an equilibrium where insurance companies want to compete for Alberta drivers business,” said Justin Thouin, co-founder of LowestRates.ca.
Nearly two years ago, UCP abolished the 5% premium limit for the insurance premium rate, and began to increase the premium rate.
The upper limit was proposed by the previous New Democratic Party government.
“Under the New Democratic Party, this is an unsustainable auto insurance environment,” Thouin said.
“Auto insurance companies can’t make money. So they all quit and forced Alberta drivers, some of whom had to drive without insurance because they couldn’t find an insurance company willing to provide them with insurance. ”
Sherif Abdelrahman started driving in Canada in 2019. His insurance rate is slightly higher than $2,600 per year.
In November last year, his company asked him to pay an additional $1,000.
“I had no accidents, I didn’t remember anything, I got a 40% increase,” he said.
“This is a huge thank you from the insurance company to us Albertans.”
Act No. 41
The province introduced Act No. 41 last year to make it more fair and affordable for consumers.
Fair Alberta said that while legislation has helped, there is still a lot of work to be done in reducing insurance rates.
“This is definitely a step in the right direction,” said spokesperson Keith McLaughlin.
“We know that insurance companies continue to share information that is not supported by public data about their profitability.”
The province stated that the rate will not increase.
“The Auto Insurance Rate Board (AIRB) is responsible for regulating Alberta’s auto insurance rates,” the Treasury Department said in a statement.
“So far, two insurance companies have applied for a rate reduction, and we understand that AIRB will not approve further rate increases unless the application indicates that the rate change is absolutely necessary.”
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