Alberta Now Puts Limits on Auto Insurance Hikes “IF YOU ARE A GOOD DRIVER!!”

Changes to Insurance Premium Rates Starting in 2024

Some relief for insurance premium rates is in store for good drivers in Alberta. The Alberta Government is looking into ways to make insurance more easily affordable for Albertans.

What rates will the Alberta government initiate in January 2024?

Starting in January of 2024, drivers with “good records” can only have their premiums increased according to the consumer price index, which is determined in the September of the prior year. That means that starting January 2024, insurance companies cannot increase the premiums for good drivers more than 3.7 percent as according to the consumer price index in September of 2023.

What is considered a bad driver?

The Alberta government will not be protecting those who are considered bad drivers. According to the definitions those who:

  • Have had one or more at fault crashes in the past 6 years
  • Had criminal code convictions during the last 4 years
  • Had major traffic convictions during the last 3 years
  • Had minor traffic convictions in the last 3 years

would be considered bad drivers and in turn are not protected by the same limits on premium incresaes. Those who do not have any of the above listed on their record would be considered a good driver.

 

Other Changes Coming to Insurance in Alberta

The Automobile Insurance Rate Board (AIRB) is also being given more power by the Alberta government. The AIRB will be able to ask that profits made by insurance companies to be returned to drivers. They will also be able to review and potentially have insurers lower their rates as required.

Further changes to the insurance industry may be in the works now by the Alberta government in an effort to make insurance more affordable.