The province has launched an online survey aimed to gather feedback from Albertans on auto insurance in the province.

The online survey focuses on several key areas including affordability, stability, simplicity, being care-focused, and taking into account accountability.

"Auto insurance rates have been increasing across Canada, with repair costs, parts shortages, vehicle theft, and higher personal injury and legal costs all contributing," the province stated in a release on Friday.

Hence, the government asked independent experts to look at systems that could reduce the costs of auto insurance and improve the sustainability and stability of the insurance industry.

According to the province, Oliver Wyman focused its work on comparing average premiums under different existing auto insurance systems, largely across Canada. 

"The Nous Group examined the broader costs and benefits of these different auto insurance models. No decisions have been made on the changes that will be made to Alberta’s auto insurance system. These reports will be used to inform future engagements and policies."

The 200-page report surmises that the required average private passenger premium for each coverage at an average accident date of July 1, 2024, is $2,015.

"We define “full coverage” as including bodily injury, property damage, direct compensation property damage, health levy, accident benefits, underinsured motorists, collision, and comprehensive," the report stated.

The report also compares and contrasts several other models used in different provinces and across the globe.

The province said that it had Alberta’s government asked independent experts to look at systems that could reduce the costs of auto insurance and improve the sustainability and stability of the insurance industry.The province said that it had asked independent experts to look at systems that could reduce the costs of auto insurance and improve the sustainability and stability of the insurance industry. A chart comparing and contrasting different provincial and other global models is featured in the report. (Graphic credit to Auto Insurance Changes in Alberta | Studies by Oliver Wyman and Nous Group) 

Several months ago, the province had announced that as part of their reforms to address auto insurance premiums, motorists with good driving records, 'would experience price protection, ensuring their insurance rates do not increase higher than inflation.'

This means that in 2024, Albertans with good driving records will only see their rates increase to account for Alberta’s inflation, using the September 2023 inflation rate.

"In September, Alberta’s inflation rate decreased to 3.7 per cent which was below the national average. On a monthly basis, Alberta also saw one of the largest inflation decreases among provinces."

A driver with a good record is everyone except those who have any of the following:

  • any at-fault accidents in the last 6 years
  • any criminal code traffic convictions in the last 4 years
  • any major traffic convictions in the last 3 years
  • more than one minor traffic conviction in the last 3 years

The province also previously announced that insurance reforms would compel insurers to offer payment plan options so Albertans would not have to pay the full amount for their coverage upfront.

"These changes would ensure the auto insurance industry can continue to cover claims costs and protect Alberta drivers while providing more relief to Albertans."

However, a previously imposed rate pause ended at the end of 2023.

"... Reforms for 2024 would not impose a dynamic price ceiling on the rate increases insurers can request but would help control how they are distributed among customers, particularly those with good driving records. Any rate increases in 2024 will be carefully monitored to ensure they are reasonable and justifiable."

The online survey is open until Wednesday, June 26.

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