Majority of Albertans don’t believe no-fault auto insurance system will lower premiums: poll

The majority of Albertans don’t believe the province will make good on its promise to lower car insurance premiums through a new system, according to new research.

New research from Nanos, commissioned by the Canadian Bar Association, says just one in five Albertans believe its likely that auto insurance premiums will actually go down if the government creates a no-fault system run and administered by for-profit insurance companies, as promised.

Auto insurance reform has been on the agenda of the United Conservative Party government for some time and became a reality last November.

Government officials proposed a no-fault system, which ends or limits an injured persons’ right to sue. Instead, injured individuals arecompensated by their own insurance.

However, legal action can be taken in cases where the other driver is criminally convicted for the actions that caused the incident.

The new system, outlined under Bill 47, the Auto Insurance Act, is set to effect on Jan. 1, 2027.

The province has also lifted the rate cap this year, allowing insurers to raise rates for good drivers up to 7.5 per cent each year.

Nanos says only 45 per cent of Albertans report knowing about the proposed changes to car insurance; 16 per cent say they are confused, uncertain, or don’t have enough details about what’s changing.

Very few of those surveyed (10 per cent) say changes to how the system works in the province are urgent, while just 30 per cent believe reform is urgent.

More people say they have higher trust in lawyers than insurance companies. Nanos says adds trust in insurance companies working in the best interest of their clients is low, and is on par with levels of trust in politicians working in the best interest of voters in their riding.

Three-quarters of Albetans believe drivers should have the right to sue someone for compensation when they cause harm or injury to you, and more than 80 per cent think a person should be held legally and financially responsible for their actions when they cause someone injury or harm.

A report completed for the province last spring found a public system, similar to what BC, Saskatchewan, and Manitoba have, would slash rates for drivers by about $700 a year for full coverage.

-With files from Sean Amato, and Lisa Johnson, The Canadian Press