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
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.