The Alberta provincial government is making changes in an effort to make auto insurance more affordable.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable,” said Premier Danielle Smith.
Right now, according to the province, insurance is not affordable, or care-focused and people can’t get timely medical care or income support.
Once the system is fully implemented, Albertans could see cost savings of up to $400 a year.
An online survey was conducted to gauge the priorities of residents regarding auto insurance.
“Earlier this year we heard from over 16,000 people, moving to a care first model aligns with what we’ve heard from Albertans,” said Nate Horner, president of Treasury Board and minister of finance. “95 per cent of those who responded to the survey support that bad drivers should pay more for their auto insurance, 92 per cent said they should receive and time as they need to recover if they’re injured and 80 per cent agreed they want to pay the lowest possible cost for their insurance.”
In the current system, people who suffer injuries due to a collision wait months for a claim to be resolved and even longer for claims related to serious and life-changing injuries to be addressed.
Within the new system, people will receive treatment based on how serious their injuries are. Those who suffer catastrophic injuries will receive treatment for the rest of their lives.
The proposed changes build upon the Saskatchewan insurance model where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence.
Albertans will receive more immediate relief. Starting in January 2025, the good driver rate cap will be adjusted to a 7.5 per cent increase.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province,” said Nathan Neudorf, minister of affordability and utilities.
This new auto insurance system will require legislation in the spring of 2025 with an expected implementation date of January 2027.
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