Car Insurance Rates Rise in Alberta

Alberta’s provincial regulator okays auto premium hike. What can you do about it?

Driving in Alberta is about to get more expensive. In some cases, very expensive.

Motorists in Alberta face a car insurance increase – anywhere from 1% to as high as 30% – following the Automobile Insurance Rate Board’s (AIRB) latest filing decision to allow 27 insurers to hike their auto rates for basic coverage on private passenger vehicles.

The AIRB says it expects the increases to help insurers manage risk and the rising cost of settling collision claims, as well as benefit those motorists who are being denied collision coverage or any coverage at all under the province’s 5% rate cap, which expired last August.

For drivers who are up for or nearing the renewal time for car insurance, they have the opportunity to shop around for the best insurance rate they can find.

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What’s Behind the Rate Hikes?

Insurers determine what individual car premiums should be on a broad range of data. That includes the number of traffic convictions and claims you have, as well as where you live, your years of experience driving, and the vehicle you drive.

There are many factors at play that are pushing auto rates up. The rising number of claims and their costs, in-vehicle safety technology which makes even minor repairs remarkably pricey, the threat of distracted driving, and the impact of climate change all have a hand in rising rates.

The AIRB says more than 92% of private insurers in the province that sell car insurance filed for a rate change.

Basic auto insurance in Alberta includes third-party liability and accident benefits coverage. Drivers can also choose additional coverages such as collision, all perils, comprehensive, specified perils and underinsured motorist.

How to Fight Back Against Rate Hikes

For drivers, there are ways to reduce the possibility of an increase in their premiums, including being a defensive, courteous driver with a history of no traffic convictions or collision claims. Insurers also offer various driver discounts that may help keep costs down.

Your other option is be proactive and shop around for the best auto rate you can find. You may save up to 20% on your car insurance premium by using the Kanetix real-time auto insurance quoting tool. So, don’t get mad, get going!

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