Study finds Albertans paying the most for car insurance

It’s a fact of driving in Alberta, the need to pay for insurance. But according to a study commissioned by ICBC, Alberta has some of the highest rates in the country.

The insurance bureau of Canada, calls the report commissioned by BC’s crown corporation flawed, saying it ignores the cost to taxpayers to subsidize the industry. Adding while Alberta auto-rates did rise in 2022, it’s below the rate of inflation — on average up about three per cent.

“When you compare that to the overall environment of inflation we are facing, things have been quite stable here in Alberta. but of course, there is more that we can and should be doing,” said Aaron Sutherland, VP of Western and Pacific, Insurance Bureau of Canada.

Sutherland says while some have seen larger-than-average increases, it’s mostly those with more expenses to repair vehicles.

Matt Jones, Alberta’s Minister of Affordability and Utilities says “we share Albertan’s concerns about the escalation in insurance rates and we are meeting with industry.”

“Once we determine the best path forward, we will share that,” said Jones. “All options are on the table.”

This statement from the affordability minister on Monday is raising eyebrows amongst political watchers.

RELATED: Alberta has highest auto insurance rates in Canada: report

“For the sake of all driving Alberta, bring in a rate cap for a year,” said Irfan Sabir, NDP MLA. “The United Conservative Party was highly critical of rate caps, which limit how much a provider can increase costs every year. In 2019, they let one expire after it was imposed by the previous NDP government.”

Chaldean Mensah a political scientist says the adoption of a cap rate would give the NDP a PR victory. “They will claim credit for it politically”

But he sees it as a government under new leadership, exploring all options to gain votes in the spring election. Saying a rate freeze is quick, and an action voters can understand.

“But that runs into political problems because she doesn’t want to give anything to the NDP,” said Mensah.

According to Sutherland “these types of policies, while they sound appealing, they don’t do anything to address the cost that is within the system. and because of that, that build-up, and some people have trouble finding the insurance that they.”

But those in the insurance industry say they’ve only now stabilized from the previous freeze… and they hope, affordability solutions take long-term consequences into account.