Alberta auto insurance rates not frozen: NDP
Posted Mar 10, 2023 2:59 pm.
Last Updated Mar 13, 2023 2:11 pm.
Alberta’s New Democratic Party (NDP) is claiming the UCP government’s “so-called auto insurance freeze” is not real, saying insurance rate hikes are “obvious”.
According to the official opposition, “filings with the Automobile Insurance Rate Board (AIRB) make it clear many drivers will soon pay a lot more to keep their vehicle on the road.”
According to the AIRB, the basic increase for 2023 in the insurance rates is 15.99 per cent, 16.26 per cent, and 13.04 per cent for Aviva Insurance Company of Canada, Aviva General Insurance Company, and Traders General Insurance Company, consecutively.
On January 26, the UCP government said it will not approve any more rate hikes for auto insurance on private passenger vehicles until the end of the year.
“We share Albertans’ concerns about the rising cost of living during the current inflation crisis,” said Finance Minister Travis Toews. “We will continue to meet with members of the insurance industry to find additional longer-term solutions for automobile insurance.”
NDP Finance Critic Shannon Phillips says the rising cost of living is already taking a toll on people.
“At a time when Albertans are already struggling to keep a roof over their head and keep their vehicle on the road just to get to work, Danielle Smith and the UCP are piling on more costs after already increasing taxes, fees, tuition, and utilities,” Phillips said.
The opposition party says when the UCP took over, they removed the rate cap their party had introduced, which led to an increase in insurance rates.
It adds despite all efforts to “reinstate the cap,” the UCP refused to even discuss it.
In a statement to CityNews, the office of Treasury Board and Finance Minister Travis Toews says the rate increases the NDP references were approved in November 2022, and no rate increases have been approved since the rate pause in January 2023.
“Aside from previously approved rate changes, rate increases on their renewals could also be due to changes to their driving records, including at-fault claims and tickets, or changes to insurance profiles such as a new address or a different vehicle being insured,” said Charlotte Taillon, press secretary for Toews, in a statement.
“The pause to rate increases supports our goal to steady auto insurance rates in the province and, ultimately, lower them for Albertans.”
— With files from The Canadian Press and Lisa Grant
