Finance Minister Travis Toews announced Wednesday morning the creation of another advisory committee; the Auto Insurance Advisory Committee..“Alberta has the highest auto insurance rates in the country, with some seeing increases well above 5 per cent,” Toews said..The committee will have three members; Chris Daniel, currently serving in a second term as Consumer Representative for the Automobile Insurance Rate Board, Shelley Miller, QC, a commercial and insurance law lawyer, and Dr. Larry Ohlhauser, former CEO of Alberta College of Physicians..The committee will be guided under the principles of “fair, accessible and affordable automobile insurance for Albertans, timely and appropriate outcomes when claims are made, a private-sector delivery model, and a viable and sustainable automobile insurance system,” said the government news release..After forming government in April, the UCP removed the cap on auto insurance the previous government had put in place in 2017..“Ultimately, the cap put a band-aid on the problem. It didn’t deal with problems that are driving up costs. Ultimately, we need to deal with the challenges,” Toews said..Some of the cost increases come from catastrophic losses such as hail and floods, while auto theft is increasing said Daniel, adding that the “cap aggravated, instead of addressed the problems”..“We know the automobile insurance industry in our province is no longer meeting Albertans’ needs. We pay some of the highest automobile insurance rates in the country. Our government is committed to addressing this problem and making necessary changes to automobile insurance,” Toews said..Costs associated with minor vehicle damage have also increased..“We’re all driving new cars,” Daniel said..“There’s so much technology in them. A windshield used to cost $300 but now, because of all the sensors in the windshield, they’re costing $1000 – $1500. Minor damage like a fender-bender is costing double or triple.”.The committee intends to look at all models of private delivery insurance options. Currently, Alberta works under a tort-based model..“Under a liability regime, meaning damages incurred by not-at-fault victims of accidents are recovered from at-fault drivers,” said Rose Anne Devlin, PhD, in A Comparison of Automobile Insurance Regimes in Canada published in 2017..Toews said the committee would have access to “up to $1 million” for a budget. The committee will also have access to staff from the Finance and Treasury department.
Finance Minister Travis Toews announced Wednesday morning the creation of another advisory committee; the Auto Insurance Advisory Committee..“Alberta has the highest auto insurance rates in the country, with some seeing increases well above 5 per cent,” Toews said..The committee will have three members; Chris Daniel, currently serving in a second term as Consumer Representative for the Automobile Insurance Rate Board, Shelley Miller, QC, a commercial and insurance law lawyer, and Dr. Larry Ohlhauser, former CEO of Alberta College of Physicians..The committee will be guided under the principles of “fair, accessible and affordable automobile insurance for Albertans, timely and appropriate outcomes when claims are made, a private-sector delivery model, and a viable and sustainable automobile insurance system,” said the government news release..After forming government in April, the UCP removed the cap on auto insurance the previous government had put in place in 2017..“Ultimately, the cap put a band-aid on the problem. It didn’t deal with problems that are driving up costs. Ultimately, we need to deal with the challenges,” Toews said..Some of the cost increases come from catastrophic losses such as hail and floods, while auto theft is increasing said Daniel, adding that the “cap aggravated, instead of addressed the problems”..“We know the automobile insurance industry in our province is no longer meeting Albertans’ needs. We pay some of the highest automobile insurance rates in the country. Our government is committed to addressing this problem and making necessary changes to automobile insurance,” Toews said..Costs associated with minor vehicle damage have also increased..“We’re all driving new cars,” Daniel said..“There’s so much technology in them. A windshield used to cost $300 but now, because of all the sensors in the windshield, they’re costing $1000 – $1500. Minor damage like a fender-bender is costing double or triple.”.The committee intends to look at all models of private delivery insurance options. Currently, Alberta works under a tort-based model..“Under a liability regime, meaning damages incurred by not-at-fault victims of accidents are recovered from at-fault drivers,” said Rose Anne Devlin, PhD, in A Comparison of Automobile Insurance Regimes in Canada published in 2017..Toews said the committee would have access to “up to $1 million” for a budget. The committee will also have access to staff from the Finance and Treasury department.
