All over the news and radio are reports of a hike in Auto Insurance rates in Alberta of 10-13%.
We all know that an increase in any of our bills is never a welcome experience. Before we let panic set in though, lets review what this means to the Alberta Auto Insurance Consumer.
What will the Increase Affect?
Firstly, the proposed increase is on your section A coverage (which is third party liability) and Accident Benefits. These coverages are part of that make up your total auto insurance premium when you have full coverage. When you read your policy document most of the increase will be the premium listed near your Third Party Liability Limit which is usually $1,000,000. or $2,000,000. The information that we have gathered suggests that the average driver will pay about $60 more a year.
The reform and changes to Alberta Auto Insurance have kept insurance costs low for many years and are working very well. Rates have been stable for many years now and hopefully this proposed increase reflects inflationary increases in claims payouts and not increasing claim trends and poor loss experience. Inflationary pressures on the costs of parts and labour mean more claims expenses and premiums have increased little in the last half decade. Increased costs shared by the industry include Bodily Injury costs up 3% in 2011 (extra $16.5 million) For a total Bodily Injury payout of $552 million.
How do I Control My Costs?
What can I do when I receive my renewal to control my costs? Be a safe courteous driver. Tickets and at fault accidents are two of the biggest reasons for large rate increases.
Contact your Insurance Broker to get the best insurance for your needs. At Armour Insurance we represent multiple Insurance companies and we work to find you an excellent coverage, service and premium fit.
