Alberta Announces Reforms on Auto Insurance for “Good Drivers”

The Alberta government has announced reforms to reduce high auto insurance costs for “good drivers.” The new reform, according to the provincial government, will address the pressing issue of automobile insurance rates in the province as longer-term solutions are explored.

This measure was announce by Premier Danielle Smith, alongside President of Treasury Board and Minister of Finance Nate Horner and Minister of Affordability and Utilities Nathan Neudorf on Wednesday. Smith said “we know Albertans have been struggling with their auto insurance rates and that’s why we’ve been working hard to find solutions.”

According to a news release by Alberta government, “Albertans with good driving records would experience price protection, ensuring their insurance rates do not increase higher than inflation.” The proposed reforms would start Jan. 1, 2024 says the provincial government.

“Achieving affordable auto insurance is a major commitment for our government and this is only the first step in delivering on that promise”, says Nate Horner.

The province said the changes would ensure the auto insurance industry can continue to cover claims costs and protect Alberta drivers while providing more relief to Albertans. The changes, according to the province, will “grant Alberta’s Automobile Insurance Rate Board (AIRB) the authority to direct auto insurers to return premiums to Albertans in years when insurance industry profits are significantly higher.”

The government says the current rate pause will remain in effect until the end of 2023, in order to ease the burden on Alberta drivers.

A good driver includes those without any at-fault accidents in the last six years; any criminal code traffic convictions in the last four years; any major traffic convictions in the last three years; more than one minor traffic conviction in the last three years.

The province has commissioned an in-depth analysis by an external consultant concerning long-term reforms and expects a draft report by the end of the year with a final report in the first quarter of 2024.

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