Auto Insurance In Alberta To Drop by 5%

Posted by: Kenny Chan onJuly 30th, 2009

After raising the basic auto insurance rate by 5% last year, the auto insurance industry will be rolling back that increase after the Auto Insurance Rate Board announced its decision today after holding public hearings last month. As with the increase last year, the new rates will take effect on November 1st. The AIRB only regulates the cost the basic insurance and not additional coverage such as collision.

“Today’s announcement shows how auto insurance reforms are working for Albertans,” Alf Savage, chairman of the Auto Insurance Rate Board, said in a statement.

“Since the introduction of the reforms in 2004, rates for compulsory auto insurance coverage have decreased by 18 per cent.”

While compulsory auto insurance rates have gone down, insurance companies have offset the difference with increased premiums for collision coverage. The court ruling that allows the Alberta Government to set a compensation cap on soft-tissue injuries benefits only the insurance companies at the expense of Albertans.

Think about this for a moment. The 5% decrease in insurance premiums works out on average to be about $30/year back into your pocket. For the short-term thinkers this may seem like a great thing; thats an extra case of beer, Right on! However, as anyone that has been involved in an injury accident can attest to, the $4,500 cap on soft-tissue injury compensation is hardly enough to cover all the medical and other miscellaneous expenses that come with these injuries. The cap on payouts keeps the money in the insurance companies pocket, and drivers in alberta get a slap-in-your-face $30 back.

Enjoy your beer.



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Comments

  1. Chris says:

    While the $30 is not alot, the general attitude is “it’s only $30, they can keep it”, but with this widespread belief, it adds up. If your injury is that severe, your doctors will change you “WAD” status, thus removing the cap anyways. I will enjoy my case of beer thanks.

  2. Chris I couldn’t agree with you more on this, if all people had this same attitude all round the world can you just imagine the trouble that the world will be in, not that we aren’t at the moment with the recession , thanks for a post on this topic.

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