If your bank account has been hurting recently, this won't help. As of January 2020, many Albertans will be paying a whole lot more to insure their cars. In fact, some Alberta car insurance prices will be increasing by 15% or more.
According to Global News, Aviva Canada, a massive Canadian insurer, has confirmed that they will be raising their prices by 15% beginning in January.
In fact, if you have a rocky driving history or a number of claims made in the past, your insurance could go up more than 15%.
Tragically, Aviva is not the only insurer that has applied for rate increases in Alberta. Though the Insurance Bureau of Canada could not confirm exactly how many other insurers have applied, they told Global News that “there are a number of them.”
Before you assume the increase is a money grab by Alberta’s auto insurers, IBC’s Western vice president, Celysete Power, assured Global News that this is not the case.
Apparently, insurers don’t have a choice as they have actually been losing money in Alberta. Claims have been going up and, as a result, insurers are losing money on literally every dollar they earn.
If you're already paying a significant amount for your car insurance each month, you should probably buckle up and get prepared to see a bigger number on that bill each month.
In August 2019, Jason Kenney’s UCP government opted to scrap the cap on auto insurance prices which was put in place by the former NDP government.
According to City News, the Automobile Insurance Rate Board is now in charge of setting auto insurance rates.
Recent numbers show that Albertans are currently filing for bankruptcy more than they have in the past two decades. This is a product of individuals being unable to pay their debt.
As Albertans are being laid off and their expenses are increasing, people simply can't keep up with their bills. If people are already struggling with their monthly payments, an increase in car insurance prices surely won't help.
News of this change comes at the same time that Calgary has been ranked the world's best city for drivers, taking everything from traffic to cost into account.