Alberta Pitches New Rules for Auto Insurance, Including Rate Hikes and No-Fault Claims
The government of Alberta has announced new rules for auto insurance in the province, including rate hikes and a shift towards no-fault claims. The changes are aimed at reducing costs for drivers and improving benefits, but critics argue that they will ultimately lead to higher premiums and reduced consumer protections.
Key Changes:
- Rate hikes: Good driver rates will be increased by 10-15% over the next three years.
- No-fault claims: Crash victims will be able to sue at-fault drivers for pain and suffering if the at-fault driver is convicted of a criminal offense, such as dangerous driving or impaired driving.
- Independent appeals body: An independent body will be created to allow those injured in traffic accidents to appeal decisions made by insurers.
Impact on Jobs:
The changes are expected to lead to the loss of between 650 and 800 legal support jobs. Critics argue that the policy decision will result in a loss for consumers and a win for insurance companies.
Reactions from Stakeholders:
- Alberta NDP Leader Naheed Nenshi said the price tag for setting up a public option is dwarfed by how much extra Albertans pay in premiums.
- Aaron Sutherland, a vice-president at the Insurance Bureau of Canada, said removing legal costs to improve affordability and improve benefits makes sense, but that auto insurers will continue to be forced to sell their coverage at a loss.
Background:
The changes are part of a broader effort by the government of Alberta to reduce costs for drivers and improve benefits. The province has declined to move towards a publicly delivered insurance system, despite estimates it would save drivers even more money in premium payments.
Next Steps:
The new rules will take effect on January 1, 2024. Critics argue that the policy decision will ultimately lead to higher premiums and reduced consumer protections.
Sources:
- The Canadian Press
- Insurance Bureau of Canada
- Alberta NDP
Related Stories:
- Auto theft insurance claims top $1.5 billion
- Ont. drivers could soon opt for less insurance
