IBC calls for more action on auto insurance affordability
IBC calls for more action on auto insurance affordability | Insurance Business Canada
Motor & Fleet
IBC calls for more action on auto insurance affordability
Move follows survey results which shed light on what drivers want
Motor & Fleet
By
Jonalyn Cueto
The call follows a new survey by Fair Alberta Insurance Regulations (FAIR Alberta), which revealed that 63% of Albertans prefer the current “at-fault” system. Only 25% support a transition to the proposed “no-fault” system.
Aaron Sutherland, vice president of Pacific and Western at the Insurance Bureau of Canada (IBC), said the survey shows the need for alternative solutions for Alberta drivers.
“The consumer polling released today by FAIR Alberta confirms there is little support for a move to a no-fault insurance system in Alberta,” said Sutherland. “These systems, operated in other provinces by state-run insurance monopolies, have proven disastrous for drivers and taxpayers.
“One only needs to look across the Rockies to see the tragic stories coming out of British Columbia’s public no-fault system to understand how people injured in collisions are denied access to justice and are left to fight a government monopoly insurer to get the compensation they deserve.”
Sutherland also expressed concerns over the lack of solutions provided to address the affordability issues that Alberta drivers are facing. He highlighted the rising legal costs underlying insurance coverages, which now constitute 20% of mandatory premiums.
“That’s why IBC has put forward its Enhancing Care & Expanding Choice proposal to the government as a solution that would give drivers more control over their coverage, with the ability to save and to choose new coverage options, while doubling benefits to those injured in collisions,” he said.
“Combined with regulatory and tax improvements, this proposal could save drivers an average of $325 annually on their auto insurance.”
In November, the Albertan government promised reforms to reduce high auto insurance costs. The announcement follows the lifting of the freeze on auto insurance rate hikes starting January 1, 2024.
The freeze was imposed to support Alberta drivers who had to pay among the highest premiums in Canada.
“Our government remains fully committed to making auto insurance affordable, sustainable and reasonable for both Alberta drivers and insurers,” said Alberta Finance Minister Nate Horner in a news conference.
He noted that, with the new reforms drivers with good records would not have their premiums increased by more than September’s inflation rate of 3.7%. However, the minister emphasized he didn’t know how many Albertans could be qualified as good drivers.
According to the reforms, good drivers are those who have not had one or more at-fault accidents in the last six years or have been convicted of a traffic infraction under the Criminal Code in the last four years.
They must also not have had any major traffic convictions or more than one minor traffic conviction in the last three years.
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