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Alberta government to review auto insurance rates with new panel

Last Updated Dec 19, 2019 at 6:59 am MDT

EDMONTON (660 NEWS) – The UCP government is creating a panel to look into auto insurance rates in Alberta.

Finance Minister Travis Toews made the announcement Wednesday, nearly five months after announcing the removal of the cap on rates.

“A three-person committee will look at what’s working and what’s not in our current automobile insurance system. They will look to find solutions that make sense for Albertans,” said Toews.

WATCHUCP not renewing cap on auto insurance rates

Toews added the cap was just only a band-aid solution for the system. He said had the government left the cap on there would have been a decline in options for Albertans.

“Caps don’t work. We ultimately need a sustainable insurance system, a model that can work sustainably into the future. We’re just working to identify any challenges in the current model that are limiting cost-effective insurance options for Albertans.”

The final cost hasn’t been determined, but the province has allocated up to $1 million for its work.

While the province has no preconceived notions on what the panel will recommend, Toews said it has to be a private model, not a socialized one like Saskatchewan.

The panel will deliver its recommendations by the spring of 2020.

Some drivers are seeing their rates rise by more than 20 per cent in the new year.

 

  • With files from Carly Robinson, CityNews