Alberta auto premiums to drop 3% (September 01, 2006)

Alberta’s mandatory auto insurance premiums are about to drop by 3% as of Nov. 1, 2006.

The reduction will be effective when Alberta drivers renew their mandatory coverage. Alberta auto insurance premiums have reduced by 18% since legislative reforms were introduced in 2004.

When the automobile insurance reforms went into effect on Oct. 1, 2004, Alberta drivers received a 5% reduction. On July 1, 2005, rates were reduced another 6%. The initial annual review process in 2005 further reduced premiums for mandatory coverage by 4%.

The most recent reduction is part of the annual review of compulsory auto insurance premiums by the Automobile Insurance Rate Board (AIRB).

The AIRB said that in setting the new rates, it considered input from Albertans and the board’s consumer representative during three days of public meetings held in June. Input from industry and the Insurance Bureau of Canada was also considered, according to AIRB.

“The AIRB’s primary focus is to make sure consumers continue to have access to fair auto insurance,” AIRB board chair Alf Savage said. “Overall, with the latest reduction, Alberta drivers will have saved more than CD$1 billion compared to rates prior to the reforms being introduced.”