Alberta’s automobile insurance coverage premiums among the many highest in Canada: report
A latest report by Ernst & Younger (EY) has discovered Alberta has among the highest auto insurance coverage premiums within the nation.
The evaluate checked out 30 completely different driver profiles, together with completely different vehicles to completely different ages and ranges of driving expertise, to check what these drivers would pay in 9 completely different provinces.
For instance, the report discovered an 18-year-old driving a 2021 Honda Civic LX with a novice licence would pay $5,936 a 12 months in Alberta, whereas solely paying $1,129 in Saskatchewan.
EY used Calgary, Edmonton, Pink Deer and Grande Prairie to symbolize Alberta in its report, which may be seen right here.
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B.C.’s automobile insurance coverage charges now amongst most cost-effective in nation: report
“Albertans are getting gouged as they wrestle to maintain their automotive on the highway and meals on their desk in the midst of an affordability disaster,” mentioned Opposition finance critic Shannon Phillips. “They’re paying hundreds of {dollars} extra per 12 months than different provinces for a similar degree of insurance coverage.
“That is freeway theft, however slightly than addressing it, the UCP (authorities) is permitting huge insurance coverage firms to cost as a lot as they need.”
John Shmuel, managing editor at RATESDOTCA, mentioned the NDP’s insurance coverage cap was not all optimistic for insurers in Alberta’s non-public system, and he’s not completely shocked to see these numbers.
“Insurance coverage firms have been speaking about the truth that they’ve been shedding cash in Alberta,” he mentioned.
“We truly noticed insurance coverage firms pull out of Alberta as a result of they felt like they couldn’t value their insurance coverage based mostly on the quantity that they have been paying out in prices.”
Shmuel mentioned it’s onerous to say if the excessive costs are simply firms “enjoying catch-up” after the cap was eliminated, however he pointed to a number of elements that harm their skill to show a revenue, such because the excessive value of authorized and well being charges.
“Which in flip results in elevated prices for customers,” he defined. “Can we lower out some center individuals and extra straight join drivers with the providers they want in the event that they’re injured in an accident?
“I believe nobody’s blissful to see excessive insurance coverage costs for customers, particularly now with inflation.”
An announcement from Finance Minister Travis Toews mentioned he believes Albertans are getting higher auto insurance coverage protection attributable to adjustments from the UCP authorities.
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UCP hiding insurance coverage firm income from Albertans: Opposition
“On account of our actions with Invoice 41, Alberta drivers noticed enhancements similar to stabilized charges, elevated insurance coverage choices and adaptability. Albertans injured in visitors accidents can now entry extra well being professionals, like dentists and psychologists, by way of their insurance coverage declare,” his assertion reads. “Quantities for grief counselling, revenue substitute and funeral advantages at the moment are adjusted for inflation.
“As effectively, the 12-month change in insurance coverage premiums as of the tip of November this 12 months is 2.4 per cent. That is lower than half of what it could have been below the NDP charge cap.”
No matter the place somebody lives in Canada or what they drive, Shmuel mentioned drivers can have some energy in what they pay by procuring round upon renewal, wanting into bundling choices, and advising their insurance coverage firms if the size of their commute adjustments.
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