The Alberta government has allowed a government cap on auto insurance that limited rate increases to 5% to expire. Under the insurance rate cap, which was first implemented in 2017, each insurance company could not exceed an average of a five-per-cent increase in rates across its entire vehicle insurance business.
Removing the rate increase cap is one of the many requests the insurance industry has already made of the new government, and is expected to lead to higher rate increases for regular working Albertans.
According to the CBC report below, the Insurance Industry spokesperson’s response to drivers worried about rate increases after the cap lifts is that they should “shop around”.
Link to full CBC article below:
https://www.cbc.ca/news/canada/edmonton/alberta-auto-insurance-rates-1.5266436
