A person looking at the pink slip on their phone.

Effective immediately, Albertans can use their smart phones to show proof of insurance. The electronic pink slips have been a long-time coming, as consumer groups and the insurance industry have pushed to replace the outdated paper pink slips drivers have to carry.

Alberta's move follows Nova Scotia, as well as Newfoundland and Labrador in accepting digital proof of insurance. All other provinces, including Ontario and Quebec still require motorists to carry the paper slips with them at all times.

Drivers need to prove they have insurance when requested by police, and also require the information in the event of an accident. It must be shown to any other parties involved in a collision, and shown when making an accident report.

The paper slips have come under heavy fire recently, in particular from the Insurance Bureau of Canada (IBC), who released a video titled "The Museum of Outdated Technology" mocking a practice they say is obsolete.

IBC Vice-President, Western, Celyeste Power, said, "The insurance industry supports any changes that help make insurance easier and more accessible for drivers. The government understands consumers deserve a 21st century insurance product, and we look forward to continuing to work with the government to bring more choice and innovation to Albertans.

"This is an excellent first step and shows that this government is clearly committed to cutting red tape for the benefit of Albertans. We look forward to working with the government on other common-sense measures that will improve the auto insurance system for Alberta's 3 million drivers," Power added.

As insurance rates soar, the industry is looking for ways to make insurance more efficient and less burdened by red tape. The IBC says this is a step forward towards that goal.

The best way to save on your insurance is to shop around. Look for the best car insurance rates today on Kanetix.ca.

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