New regulations are coming to car insurance in Alberta in the new year. Drivers with a clean record will get price protection, which will ensure insurance rates do not increase beyond inflation.
Drivers will get the protection if they have no at-fault accidents within the last six years, no criminal code traffic convictions in the last four, no major traffic convictions in the past three years and no more than one minor traffic conviction such as a minor speeding ticket in the past three years.
“People who follow the rules on the road should not be punished when they have done nothing wrong. There should also be a reward for doing things right,” said Premier Danielle Smith.
According to a news release from the province, it will also work to amend regulations to ensure insurance companies allow payment plans. It will also grant Alberta’s Automobile Insurance Rate Board the authority to direct companies to return premiums to Albertans in years when insurance industry profits are significantly higher.
The province has commissioned an analysis from an external consultant to investigate long-term reforms to car insurance and a final report is expected in the first quarter of next year.
“That analysis will give us a better picture of the overall industry and what we need to do in order to best preserve Albertans by providing the coverage that they need at a price that they can afford – it will not result in us telling insurers how to run their businesses,” Smith said. “We know that competition is the best way to guarantee that everyone finds coverage that fits their budget and their situation, no matter their age or their income.”
There is currently a pause on rate increases, which will end at the end of this year.