Premium change in Alberta. (Supplied by LowestRates.ca)

By David Opinko

Rising Insurance Costs

Alberta auto insurance rates up 24% since beginning of 2019: Report

Sep 28, 2020 | 11:58 AM

A new report from LowestRates.ca shows that the cost of car insurance continues to “skyrocket” in the province.

Between the first quarter of 2019 to Q2 2020, they report that the average monthly price for auto insurance increased by 24 per cent overall.

Note: In the graph shown at the top of this article, the y-axis does not show dollar figures. LowestRates.ca set an index of 100 as a baseline for Q1 2019 and showed what percentages the average price changed in relation to it.

Those in the 25-44 age bracket saw the largest increase in that time (+28.7 per cent), followed by ages 18-24 (+23.9 per cent), and ages 45-79 (+19.9 per cent).

Men and women appear to have been impacted evenly as both genders saw their premiums rise 22.5 per cent.

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In late 2019, the Government of Alberta lifted the annual five per cent cap on auto insurance rates.

While early reports this year had shown that several providers were set to increase prices anywhere from one to almost 30 per cent for basic coverage, LowestRates.ca believes the COVID-19 pandemic has lessened the blow for at least some drivers.

“Auto insurance companies have long complained that government regulation has kept rates artificially low in Alberta. The industry has lobbied for the ability to raise insurance premiums by at least 20%,” reads a section of the report.

“Even with the 5% cap gone, the insurance industry still claims that the insurance grid is keeping prices too low. Car insurance rates in Alberta operate under a grid system, which establishes the highest premium insurance companies can charge for basic coverage (third party liability and accident benefits).”

Back in December, the province announced a panel that would review auto insurance rates in Alberta.

The full report from LowestRates.ca can be found here.

(Lethbridge News Now)