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UCP looking at revamping auto insurance but there’s no guarantee of savings

Last Updated Oct 30, 2020 at 6:38 am MST

EDMONTON – Albertans may or may not save money on insurance premiums with a new bill tabled by the UCP government.

Bill 41 will see some cost-saving measures introduced for insurance companies, but there’s nothing in the bill that guarantees the companies will pass those savings on to you.

The province is looking at a few options, including bringing in some new options to avoid long and costly legal battles as well as changing some regulations around payouts.

Finance Minister Travis Toews says while there are no guarantees any company will charge you less while they save more, he does expect insurance companies to allow for Albertans to save around $120 a year.

“When cost pressures rise, of course, industry participants will increase their premiums. As cost pressures decrease, in a competitive environment, it would be expected that premiums drop,” he said.

“Industry actuaries and independent actuaries have estimated that the measures we’re introducing today will result in a reduction of premiums.”

The UCP also says proposed changes will increase medical benefits for Albertans who are injured in a crash by increasing access to health professionals like dentists, psychologists, and occupational therapists.

The report also suggests looking into pay-per-use insurance, which would be based on how many kilometres you drive, and no-fault insurance, meaning everyone goes through their own provider regardless of who causes a crash.

Meantime, the Official Opposition is calling for the premium cap previously introduced by the NDP to be reinstated or for the government to explore a public insurance system.

Alberta has the third-highest insurance costs in the country.