The United Conservative Party (UCP) government is pausing private passenger vehicle insurance rate increases through to the end of 2023..Recently, Albertans expressed increased concerns about the affordability of auto insurance for personal vehicles in light of the current inflation crisis..In addition to pausing rates until the end of 2023, Alberta’s government will continue developing short and long-term solutions to steady and lower auto insurance rates..“We share Albertans’ concerns about the rising cost of living during the current inflation crisis. We will continue to meet with members of the insurance industry to find additional longer-term solutions for automobile insurance,” Minister of Finance Travis Toews said..While no new rate increases will be approved for the remainder of this year, some Alberta drivers may still see rate increases on their renewals in 2023..This may be due to previously approved rate changes, changes to driving records including at-fault claims and tickets, or changes to insurance profiles such as a new address or a different vehicle being insured..The UCP government has also heard concerns that some Albertans faced challenges with having to fully pay their annual auto insurance premiums upfront..To help address this, the government is requiring insurance companies to provide most Albertans with the ability to pay their premiums through payment plans..The province implemented reforms in fall 2020, which are expected to further stabilize rates. However, factors such as inflation and supply chain issues for auto parts have impacted the effect of reforms in the short term..Alberta’s insurance market is being closely monitored and the government will continue to look at options for further improvements..“Affordability is a primary challenge facing many Albertans as rising inflation makes it challenging for many to afford necessities, including auto insurance," Minister of Affordability and Utilities Matt Jones said."We are taking decisive action to protect Albertans from increased costs while working to keep Alberta affordable.".The Alberta NDP said, for years, the UCP claimed rate caps don’t work.."Only weeks ago, Danielle Smith and Travis Toews blocked Alberta NDP legislation that would have immediately put a real freeze on insurance rates," NDP Finance Critic Shannon Phillips said..“Now the UCP is in chaos, and they’re too incompetent to even implement a real rate freeze."
