Rate hikes, no-fault claims in new rules pitched for Alberta auto insurance

The Alberta authorities is making changes to auto insurance, including complaint hikes and switching to a predominantly no-fault claims model.

Premier Danielle Smith announced the alteration to a “care-focused” strategy astatine a quality league successful the legislature connected Thursday.

Under the caller system, car clang victims successful astir cases won’t beryllium capable to writer the enactment liable for their wounded and, instead, insurers would wage compensation astatine rates acceptable by the government.

The state said it commissioned 2 car security reports, which showed that ineligible fees and ineligible costs tied to the existent strategy importantly summation premiums. The state added collision-related lawsuits person astir doubled successful Alberta betwixt 2018 and 2022.

By cutting down litigation costs, the authorities estimates that erstwhile the caller strategy is successful spot successful January 2027, it could pb to savings of up to $400 per twelvemonth for the mean security premium.

It’s besides promising amended enactment and benefits for those wounded successful collisions, specified arsenic Albertans who endure catastrophic injuries receiving attraction and attraction for the remainder of their lives.

Until the caller exemplary kicks in, insurers would beryllium allowed to rise rates for bully drivers up to 7.5 per cent each year, starting successful January.

— More to come…

With files from Karen Bartko, Global News