New bill on auto insurance an erosion of privacy says expert

CALGARY (660 NEWS) – The United Conservative government is pressing forward on ways to make auto insurance rates cheaper, but it could come at the expense of your personal privacy.

If passed into law, Bill 41, the Auto Insurance Amendment Act, would allow insurance companies to track your driving behaviour in exchange for cheaper rates.

Sharon Polsky with the Privacy and Access Council of Canada said it’s a pretty underhanded tactic.

“It’s very popular for insurance companies because they get to see how you are driving. You are encouraged to improve your driving, it’s better for public safety and road safety.”

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She added while some insurance companies already use this tactic, it’s voluntary.

If you choose not to be recorded, Polsky said that could result in higher premiums.

“Statistics say that people who don’t agree to be monitored have something to hide so obviously you’re a higher risk. Your base rates are going up unless you prove that you’re a good driver. That’s not choice, that is coercion.”

She said if the bill is passed, people will look back and wonder why they didn’t do something about it sooner and that it will have a lasting impact on the privacy of Albertans.

Polsky has voiced her concerns to MLAs regarding the bill but said they don’t seem to understand the far-reaching nature of the legislation.

Last month, the UCP introduced Bill 41 which included cost-saving measures for insurance companies.

Although there was no guarantee these measures would result in lower costs for consumers, Finance Minister Travis Toews does expect companies to allow for Albertans to save around $120 a year.

“When cost pressures rise, of course, industry participants will increase their premiums. As cost pressures decrease, in a competitive environment, it would be expected that premiums drop.”

This comes after the government removed the five per cent rate cap on insurance premiums introduced by the former NDP government.

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