Good Driver?
Doesn’t Matter.
GOOD DRIVERS PAYING HIGHER PREMIUMS THAN THEY SHOULD
In 2024, following a year-long “rate pause,” the Alberta government implemented a 3.7% cap on auto insurance rates for those it defined as “good drivers.” This was announced as a short-term measure while the government explores reform options to improve affordability. It hasn’t had its intended effect.
Facing mounting cost pressures, auto insurers are leaving the province due to the rate cap. Others are restricting the coverages they provide. For Albertans, coverage is getting harder to secure, and drivers are being forced to find new and often more expensive insurance from other carriers. Under the rate cap, premiums continue to rise and affordability is under strain.
Government needs to END the rate cap now.
HERE ARE THE FACTS:
FACT 1: THE RATE CAP IS CRIPPLING COMPETITION AND CHOICE, AND ALBERTANS ARE PAYING THE PRICE
Under the rate cap, it’s getting harder for drivers to secure the coverage they need.
Auto insurers are leaving the province due to the rate cap, forcing their customers to find new – often more expensive – coverage from a new carrier. Those that remain are restricting the coverage they sell, with more and more Albertans unable to secure the coverage they need.
Instead of helping drivers, the rate cap is having the opposite effect. It needs to be removed immediately so that competition and choice can return to the market.
Click here to find out why insurers are leaving Alberta due to the rate cap.
FACT 2: ALBERTANS ARE FALLING OUTSIDE OF THE DEFINITION OF A ‘GOOD DRIVER’ AND ARE PAYING MORE AS A RESULT
Alberta’s ‘good driver’ definition doesn’t apply to those who purchase a new vehicle, move their primary residence, add a spouse or child to their policy or are new residents to Alberta. It also does not apply to new and young drivers.
As auto insurers are forced to apply growing cost pressures to those falling outside the rate cap, Albertans who lose their ‘good driver’ status are paying more than they otherwise would if the rate cap didn’t exist.
It’s time the rate cap was removed, so good drivers could save on auto insurance.
FACT 3: PREMIUMS CONTINUE TO RISE, DESPITE THE RATE CAP
Over the past two years, auto insurance premiums have risen 12% despite the provincial government’s rate caps.
It’s time for the province to remove the rate cap.
FACT 4: COST PRESSURES IN ALBERTA’S AUTO INSURANCE SYSTEM ARE GROWING DRAMATICALLY. THESE MUST BE ADDRESSED TO IMPROVE AFFORDABILITY FOR DRIVERS.
Over the past two years:
- Legal costs following collisions have grown a projected 19%.
- The cost of delivering care and recovery benefits to those injured in a collision is up roughly 27%.
- The cost of new and used replacement vehicles has grown 27% and 9%, respectively.
- The cost of auto theft is up 55%.
- The Alberta government’s own health levy on auto insurance premiums is up a staggering 60%.
These cost pressures are growing well in excess of the rate cap. It’s time the province ended the rate cap.