The Alberta government announced on January 25, 2023 that they would be freezing auto insurance rates and making it easier for residents to pay monthly for their insurance. We wanted to clarify what this all means for Albertans, how your it impacts your insurance premiums this year, and what it will mean going forward.
What is a Rate Freeze?
Auto insurance prices in Alberta are regulated by the by the AIRB (Auto Insurance Rate Board). Yesterday, the Government of Alberta has instructed this regulator to deny any further rate change requests from the insurance companies. Rate changes usually occur when you policy renews. While your renewal this year may still have a previously approved rate change, rate changes on the following renewal will be frozen.
What does a Rate Freeze mean for my 2023 insurance premium?
The 2023 rate freeze only indicates that rate boards are not allowed to increase their rates until 2024. Many of the major companies had rate increases approved in late 2022. This means that you may still see a change in your insurance premium upon renewal or switching. On your 2024 renewal, there still may be fluctuations in your premium, but the rates will have been frozen.
What Can Still Impact Your Insurance Premiums?
Even with a rate freeze there are several things that can cause your premium to increase from year to year. Below are a few examples.
- Driving convictions: A pullover ticket on your driving record
- Accidents or claims: If you have an at fault claim on your insurance you may see a premium increase
- Change of address or vehicle: If you move or get a new vehicle, your insurance premium can fluctuate.
Making Monthly Payments More Accessible
In addition, the auto insurance rate freeze, Alberta's Superintendent of Insurance has released new rules to ensure that Albertan's have affordable options for their auto insurance. Over the past few years, many insurance customers have found that they are required to pay their yearly insurance premiums in full. This ruling will open up payment plans to many more Albertan's.
Under the new ruling, Albertan's will have access to monthly payment plans barring any of the following.
- You have been cancelled twice or more in the last 3 years for non-payment of your policy
- You're driving your vehicle for business or non-personal reasons
- You are insuring 5 or more vehicles with the same company, which would be classified as a fleet
- Your total annual premium is less than $300
- Your insurer did not offer any payment plans, to any of their customers prior to the date of this ruling (January 25, 2023)
Armour will continue to offer our in-house financing. This ruling will not affect anyone currently financed through this method.
Have Any Questions?
If you have any questions or concerns about the Alberta insurance premium rate freeze you can contact your local MLA or you can contact your insurance broker.
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