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Insurance rates could go up as UCP eliminate cap on rates

Last Updated Nov 15, 2019 at 6:28 am MDT

CALGARY (660 NEWS) – Car insurance rates are likely going to jump in Alberta next year.

The United Conservatives recently eliminated a five per cent cap on rates imposed by the previous NDP government.

Celyeste Power with the Insurance Bureau of Canada said the cap was just a band-aid solution.

“There were issues in the system, they needed to be addressed, there were fixes to make that would have actually saved consumers money. Those fixes were not made, they were ignored and the cap was put on as a band-aid that would essentially push rates down the road for consumers.”

Power said insurance costs are expected to increase because of more claims and because it’s more expensive to fix today’s technology-packed vehicles.

Right now, it’s not clear how much rates could go up and which companies will be affected. Power says the best advice she can give is to keep looking for the best price.

“There are 45 insurers in the market here in Alberta, it’s a competitive market. Insurers don’t want to raise rates on consumers, they want to keep their consumers, they want to get new consumers. They will be out there competing for business.”

The Insurance Bureau said it’s working with the provincial government to bring in some fixes for the system, to make rates as affordable as possible.