Alberta launches auto insurance website after announcing major changes
Posted November 25, 2024 11:07 am.
The Alberta government launched a new website Monday following last week’s announcement that major changes were coming to auto insurance, including rate hikes and switching to a predominantly no-fault claims model.
“The website focuses on explaining how the new auto insurance system will provide better medical and faster income support benefits,” the province wrote in a news release.
READ: Alberta pitches new rules for auto insurance, including rate hikes, no-fault claims
Under the new system, car accident victims in most cases won’t be able to sue the party responsible for their injury and, instead, insurers would pay compensation at rates set by the government.
By cutting down litigation costs, the government estimates that when the new system is in place in 2027, it could lead to savings of up to $400 per year for the average insurance premium.
It’s also promising better support and benefits for those hurt in collisions.
“We’re ensuring Albertans will save money on their auto insurance when the new Care-First system is implemented, and we want to provide them with the information they need on how their benefits are going to be increased and delivered faster,” Finance Minister Nate Horner said in the province’s news release.
Until the new model kicks in, insurers will be allowed to raise rates for good drivers up to 7.5 per cent each year, starting in January.
The government said the hikes will help insurers pay rising legal costs and payouts along with covering off the impacts of natural disasters like hailstorms.
The 7.5 per cent cap is more than double the United Conservative government’s rate increase cap of 3.7 per cent, which is set to expire at the end of the year.
–With files from The Canadian Press
