New report shows auto insurance rates slowly declining in Alberta
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.
Thouin says the removal of a five per cent premium cap on insurance rates from the UCP started the increase of rates nearly two years ago.
The cap was brought in by the previous NDP government.
“It was an unsustainable environment for car insurance under the NDP,” said Thouin.
“Car insurance companies couldn’t make any money. So they were all pulling out, and forcing Alberta drivers, some of them to have to drive without insurance, because they couldn’t find an insurance company that would be willing to insure them.”
Sherif Abdelrahman started driving in Canada in 2019. His insurance rate was a little more than $2,600 annually.
Last November his company asked him to pay an additional $1,000.
“I had no accidents, no demerits nothing and what I got was a 40 percent increase,” he said.
“That was a big thank you from insurance companies to us Albertans.”
BILL 41
The province introduced Bill 41 last year to make it more fair and affordable for consumers.
Fair Alberta said that while the legislation helped, there is still a lot to do when it comes to lowering insurance rates.
“It’s 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 publicly-available data around their profitability.”
The province says rates will not increase.
“The Automobile Insurance Rate Board (AIRB) regulates auto insurance rates in Alberta,” read a statement from the ministry of finance.
“So far, two insurers have filed for a rate reductions, and we understand that AIRB is not approving further rate increases, unless an application demonstrates a rate change is absolutely necessary.”
“At the end of the day, Alberta has a competitive auto insurance marketplace. Drivers are encouraged to shop around and compare quotes to find best insurance options for their needs and budgets,” read the statement.
CTVNews.ca Top Stories
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Snowbirds in Vancouver for puck-drop flyby as Canucks face Oilers
The Canadian Forces Snowbirds will be performing a flyover across downtown Vancouver at the start of tonight's Stanley Cup playoff game between the Canucks and the Edmonton Oilers.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.