The Government of Alberta is looking to introduce changes to auto insurance.
On Wednesday (Nov. 1) Premier Danielle Smith was joined by Finance Minister Nate Horner and Affordability and Utilities Minister Nathan Neudorf to announce their plans.
The province will be taking steps to address the affordability of auto insurance, with plans including rewarding drivers with clean records, making sure flexible payment plans are being offered, and giving more power to Alberta's Automobile Insurance Rate Board (AIRB).
A price protection for Albertans with good driving records is planned.
Horner provided some examples of who would be eligible.
"The price protection would apply to drivers who have not had one or more at-fault incidents in the last six years, any criminal code traffic conviction in the last four years, for example, driving under the influence, and major traffic convictions in the last three years, an example would be speeding in a school zone, more than one minor traffic conviction in the last three years, for example, minor speeding tickets."
Smith provided some details on flexible payment plans.
"Prices have gone up across the board, and it makes it difficult for people to manage their day-to-day finances. Introducing flexible payment plans for auto insurance will provide more peace of mind for Albertans as they still grapple with rising bills and payments."
This would be intended to provide some relief to Albertans who have had to pay for coverage upfront.
They also plan on granting the AIRB with the authority to return premiums to drivers during years when profits are significantly higher, or to request a rate filling from insurers at any time.
A rate pause is currently in place until the end of the year, and the proposed reforms are to be put in place in 2024.
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