Some Alberta auto insurers reducing rates, but NDP call out government for not doing enough
Posted April 27, 2022 5:13 pm.
Last Updated April 27, 2022 5:50 pm.
The Alberta NDP are pointing fingers at the UCP, saying the government isn’t doing enough to lower people’s insurance rates.
The New Democrats say despite Finance Minister Travis Toews’ claims that auto insurance rates would drop, they haven’t, and the latest budget projects Albertans to pay around $900 million more in premiums over the next three years.
“You hear this talking point coming from the finance minister and the premier, that insurance premiums are going to magically come down, but like most statements from the UCP, that is a lie,” said Shannon Phillips, NDP Finance Critic.
“Do not trust what the government tells you about your car insurance. We have evidence, you don’t need to look any further than the finance minister’s own budget. Specifically, on page 205.”
The NDP cap on insurance rates was removed when the UCP took control of the government.
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In a statement to CityNews, Toews says rates have dropped and are continuing to drop.
“Albertans deserve an automobile insurance system that is fair, affordable, and accessible, and we are committed to examining ways to improve the system,” the statement read.
“That’s why we introduced Bill 41 last session that made legislative and regulatory changes to stabilize auto insurance rates, enhance medical care benefits, and ensure more options and flexibility for drivers.”
Toews’ office says seven insurers filed for rate reductions since fall 2020:
- Intact has decreased its rates by 2.04% effective July 8, 2021.
- Belair has decreased its rates by 2% effective July 11, 2021.
- Zurich has decreased its rates by 2.71% effective Dec 31, 2021.
- Alberta Motor Association has decreased its rates by 7.13% effective Jan 1.
- Peace Hills has decreased its rates by 2.63% effective Jan 1.
- Co-operators has decreased its rates by 2.11% effective Mar 16.
- One other insurer has been approved for a decrease of 2.07% effective April 1.
While the Alberta Automobile Insurance Rate Board confirms those decreases, it also shows six other insurers have increased rates in 2022 alone, and a majority of insurance companies have kept rates at the same levels as last year.
“This is further proof of why we need the NDP rate cap reinstated. And it’s further proof that the UCP can’t be trusted to put the interests of Albertans ahead of their friends and insider lobbyists in the insurance industry,” Phillips added.
“I don’t think Albertans would be out of step to question whether or not they can trust the UCP when they make statements like that and they look at the reality of the market,” said Bradley Lafortune, Executive Director of Public Interest Alberta.
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He points out that around half of Albertans are just $200 per month away from not being able to meet all of their financial obligations and with a majority of auto insurers not reducing rates, it could cause issues.
“When you combine auto insurance rates, if they’re going up a little bit or even if they’re staying the same, with gas prices, utility prices, rent, and mortgages going up as well, there’s a real affordability crunch in this province and across the country right now,” said Executive Director Bradley Lafortune.
“We saw the profits that overall the industry was making here in Alberta go up and up and up over the past three years, it doesn’t necessarily compute to a lot of people that we can’t have that [rate cap] in place to introduce some stability or ensure some stability in the market.”