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
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.
Made-in-Newfoundland vodka claims top prize at worldwide competition
A Newfoundland-made vodka has been named one of the world’s best by judges at this year’s World Vodka Awards.