In August of this year, the Alberta Government chose to discontinue the five percent annual rate hike limit for the auto insurance industry. This decision was made in part to the rising increase of insurance claim costs, fraud-related issues, requirements concerning upfront payments, and the reduced access to certain coverages.
Since then, several insurance companies operating in Alberta have filed for rate changes from the Automobile Insurance Rate Board (AIRB). It is not clear at this time how many have done this.
However, Global News discovered that Aviva customers can expect to see an increase of 15 percent come January 2020. In a bulletin obtained by the news source, Aviva informed brokers of the changes to be made across-the-board and that additional increases may be implemented depending on driving and claims history.
This may come as a surprise to Aviva customers after seeing their most recent increase in April.
"Insurers have actually been losing about 12 cents, on average, on every dollar that they've been taking in right now," Celyeste Power, Western Vice President, Insurance Bureau of Canada (IBC), told Global News. "So they've been paying $1.12 for every $1 they're taking in."
The rising claims costs have left the insurance industry with little choice. However, the IBC has outlined measures to be implemented in an effort, "to properly sustain the market and ensure that consumers access affordable and available insurance in the coming years."
The IBC suggested, "that the government, AIRB, industry and stakeholders work together on a transformational change to Alberta's auto insurance system in the best interest of consumers."
Having a good driving record and claims-free status can help keep your insurance costs low. Yet, some things are still outside your control. Premiums increase based on where you live, fraudulent claims, vehicle thefts, and many more individual factors.
If you see your rates increase there is no better time to jump online and start shopping around. Compare quotes at Kanetix.ca and find your best auto insurance rate.