Insurance rates in Alberta to rise by 5 per cent
Posted Jul 25, 2013 12:31 pm.
This article is more than 5 years old.
Officials are calling it a compromise as the province moves ahead with plans to raise auto insurance rates across Alberta.
Companies had lobbed the Automobile Insurance Rate Board (AIRB) for a 13 per cent increase citing deterioration in third party liability bodily injury claims.
Instead, AIRB officials settled on 5 per cent, telling motorists the increase is fair, predictable and on-par with many other jurisdictions.
The effect will take place on November 1st and providers will have the option to implement all or part of the increase.
AIRB Chairman Alfred Savage tells 660News this means people can expect a $30 increase on their policies in the end.
He believes the bump is fair.
“We looked at property injury, property damage, accident benefits and so on,” he explains. “Bodily injury there weren’t more claims but the property claims were a lot more money this year.”
“The claims for psychological and chronic injuries are not subject to the cap and these have increased considerably, this is kind of a new area of claim,” Savage adds.
The decision only applies to mandatory coverage, which is required by law.
