IBC calls on province to lower costs for insurance companies

Car and Driver, IBC image via https://www.ibc.ca/insurance-basics/auto
Car and Driver, IBC image via https://www.ibc.ca/insurance-basics/auto

The Insurance Bureau of Canada (IBC) is calling for urgent action to reduce cost pressures on Alberta insurance companies.

While Alberta drivers are paying some of the highest premiums in the country, IBC says legal costs are one of the reasons. According to their data, the legal bills for insurance claims have climbed over 30 per cent in Alberta in the past five years. The cost of vehicle theft is also up nearly 40 per cent.

“Alberta’s insurers are keen to work urgently with the government to tackle the cost pressures facing premiums and find ways to improve the affordability of auto insurance for drivers,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada

“Unfortunately, the action taken to date – including Alberta’s rate cap for good drivers – does not address the costs underlying drivers’ coverage and will do little to improve the price drivers are paying moving forward.”

IBC is calling on the province to get rid of the insurance premium tax and provincial health levy. They suggest removing these hidden fees would save drivers approximately $65 per year per policy.

They also want to see the province change the rate system so that higher-risk drivers would pay higher premiums. According to IBC the current, “Grid framework” results in safe drivers subsidizing bad drivers.

Finally, they want the province to adopt IBC’s “Enhancing Care & Expanding Choice” proposal, which they say gives drivers more control over their coverage while doubling the care provided to those injured in collisions.

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