“Our government remains committed to making auto insurance affordable, sustainable and reasonable for both Alberta drivers and insurers,” Horner said in 2023. He spoke at a press conference on Wednesday, November 1st.
The announcement comes as the state moves to lift its freeze on auto insurance premium increases at the end of the year.
The freeze was imposed in January to help Alberta drivers, who pay some of the highest insurance premiums in Canada.
A driver in good standing is defined as a driver who has not caused at least one at-fault accident in the past six years or been convicted of a criminal traffic offense in the past four years. He must also not have been convicted of a major traffic violation or one or more minor traffic violations in the past three years.
Criminal law convictions include driving under the influence.
Major traffic offense convictions include speeding in a school zone, distracted driving, driving more than 50 km/h over the speed limit and failing to remain at the scene of a collision.
Minor convictions include other speeding tickets and failing to obey a slow or stop sign.
Photo radar violations are not counted.
Horner said it’s unclear how good Alberta drivers will qualify based on this standard.
“We don’t know exactly, but we’re pretty sure it’s the majority of Albertans,” he said.
“We’ll see more of that as the interest declarations progress.”
Horner said the decline in driving during the COVID-19 pandemic has caused insurance companies’ profits to soar, exceeding standards set by Alberta’s insurance regulator, the Motor Insurance Rate Board. He said that further changes were needed.
The state is proposing a recommendation that would give rate commissions the power to direct insurance companies to refund a portion of premiums to drivers during periods of high profits.
The rate committee will also be given the power to direct insurers to reduce rates if it is deemed unreasonable.
Ratepayers are also allowed to stagger premium payments.
Opposition NDP House of Commons Leader Christina Gray said the changes are designed to promise a lot but deliver little.
He said the government’s definition of a good driving record was so narrow that it would exclude most drivers, as well as those who switch insurers.
Mr Gray also noted that while the Government has given the Rates Commission the power to take action against insurers, it has not set clear criteria for when such action should be taken.
“If you’ve had two traffic tickets in the last three years, please buckle up. Your toll will skyrocket,” Gray told reporters.
“Many Albertans will not fall under this cap, and the insurance industry will seek to profit from them.”
Similarly, Horner announced that the province had commissioned an independent report to explore long-term reforms to the system.
A draft report is expected to be submitted by the end of the year, and a final report is expected to be submitted in the spring.
This report is canadian press First published on November 1, 2023.
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