Alberta Raising Auto Insurance Rates

 
According to a recent report, the Alberta Automobile Insurance Rate Board is considering raising the rates on auto insurance that their residents currently pay. They say that they find that this is probably gong to be necessary, and many residents are not pleased by the possibility. They held a meeting last week where they discussed raising auto insurance rates as well as the recommendations that had been made to freeze the cost of basic coverage.
 
Due to the problems with the economy, the Insurance Bureau of Canada and the provincial Automobile Insurance Rate Board’s own actually both felt that it was necessary to keep auto insurance rates where they were. They did not want to see an increase in third party liability and accident benefits. However, they do not regulate optional coverage like collision and comprehensive so these are expected to increase thus raising auto insurance premiums. The majority of drivers in Alberta have both of these options in their policies.
 
However, since these optional coverages comprise roughly 45% of their auto insurance rate – most drivers will see a significant increase in their policies. The rate board chairman says that he understands why residents are frustrated by this in that they call these pieces of the auto insurance plans optional, when really they are not and every driver needs to have them. But if their auto insurance rates keep going up, many drivers are going to have to remove them from their policies, which makes for a much bigger problem.

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