The fact is, 900 collisions, injuries, or fatalities, and millions of dollars in property damage occur every year in Alberta construction zones. Click here to learn how to keep everyone safe in a construction zone.
Author: Heather Mack
When you drive distracted, you’re putting yourself and others at significant risk of collision, injury, or death. Every incident of distracted driving is entirely preventable. Learn ways to avoid driving distracted here.
May is Motorcycle Safety Awareness month in Canada. Learn we can keep each other safe on our roads here.
Establishing and reporting on ESG metrics is a priority for governments, the insurance industry, and Alberta drivers.
The AIRB has considered ESG impacts for industry and has started to develop metrics to measure these important factors as we deliver on our vision, mission and mandate to serve Alberta drivers and the Government of Alberta.
Given the nature of our work, some ESG metrics are less applicable to the AIRB – however we value all three themes as we seek to regulate the automobile insurance industry and educate Alberta drivers.
View the 2022 ESG report here.
Today Alberta’s Official Opposition stated that the Automobile Insurance Rate Board (AIRB) approved rate changes for two companies “on March 1, 2023”. This is incorrect. The rate filings were approved months prior to the government’s announced rate pause on January 26, 2023. The AIRB is in full compliance with the Ministerial Order.
The AIRB publishes approved rate changes when they are implemented, not when they are approved by the Board.
The rate pause means that insurers cannot apply for new increases to Albertans’ auto insurance premiums until 2024. Albertans may still experience a premium increase when they renew based on previously approved rate increases.
As part of the AIRB’s consumer education mandate three social media channels were launched in January 2023:
Like all businesses, an insurance company must cover its costs to stay viable. The difference with an insurance company is they do not know how much the final product will cost when they set the price.
Insurance companies use a formula based on several identified risks to determine the price of your auto insurance policy. These risks include where you live, your age, vehicle type, how much you drive, and any past insurance claims.
As your risk profile changes (e.g. your driving record improves), your premiums can go down.
You may also be eligible for discounts or preferred rates such as:
- Bundling together your home and vehicle insurance
- Having an anti-theft system
- Using winter tires
- Having a membership in a professional association
- Being an alumnus of a university or college
To learn more about how to reduce your rates visit 10 Ways to Reduce Your Rates.
And yes, insurance companies do request rate decreases as market conditions change. Over 25% of insurers implemented rate decreases during 2022, or will be implementing decreases in 2023.
Visit Approved Automobile Insurance Rate Board Filings to look up rate changes approved over the past three years for your insurance company. In Alberta’s competitive marketplace, drivers should explore their options for auto insurance by shopping the insurance market.
Do you have a question about auto insurance rates in Alberta? Email us at [email protected].
Today the Government of Alberta ordered the Automobile Insurance Rate Board (AIRB) to pause new rate approvals that increase private passenger auto insurance premiums for Albertans. This pause is in place until December 31, 2023. Click here to read the news release.
Please note the Superintendent of Insurance issued two related bulletins:
- Interpretation Bulletin 01-2023: Premium Payment Plans for Private Passenger Vehicle Insurance
- Interpretation Bulletin 02-2023: Underwriting Rules Pertaining to Section C (collision and comprehensive) Coverage
It is important to know Albertans may still experience a premium increase when they renew based on previously approved rate increases. Premiums may also be impacted during the rate pause if, since their last renewal, policyholders have:
- a new at-fault claim,
- a new traffic violation added to their driving record,
- changed vehicle, and/or
- changed home address.
Filing Guidelines
The AIRB is announced an update to the Filing Guidelines effective January 26, 2023. Insurers should refer to Bulletin 01-2023 for information on what has changed in the new version of the filing guidelines. The file and use limits for rate change and dislocation have been amended in accordance with Ministerial Order 11/2023. Insurers should contact the AIRB prior to any PPV filings during the rate pause.
For more information, please refer to the Filing Guidelines webpage on our website.
The Government of Alberta ordered the Automobile Insurance Rate Board (AIRB) to pause new rate approvals that increase auto insurance premiums for Albertans. This order is in place until December 31, 2023.
The announced rate pause means that going forward insurers cannot apply for new increases to Albertans’ auto insurance premiums until 2024.
You may still experience a premium increase when you renew based on previously approved rate increases. Check our website for approved rate changes in the last 12 months that may result in an increase to your premiums.
Your premium may also be impacted during the rate pause if, since your last renewal, you have:
- a new at-fault claim,
- a new traffic violation added to your driving record,
- changed vehicle, and/or
- changed your home address.
In Alberta’s competitive marketplace, drivers should explore their options for auto insurance by shopping the insurance market. The AIRB comparative rating tool lets you compare the auto insurance rates of the most common profiles of Alberta drivers.
Click here to learn more about how to reduce your auto insurance rates.
Recent media reports of an Ernst and Young report commissioned by ICBC claim that Albertans pay the highest auto insurance rates in Canada. No, Albertans do not pay the highest rates in Canada, according to data from the General Insurance Statistical Agency.
The Alberta Auto Insurance Rate Board (AIRB) has identified a number of issues with the Ernst and Young report:
- Lowest quote not considered: When reporting premiums, the report did not consider the lowest quote offered and instead used an average of the higher quotes. There are over 40 different insurance companies offering coverage for private passenger vehicles in Alberta and there can be significant differences from the lowest to the highest quote.
- Discounts were not considered: Alberta’s private auto insurers offer a number of discounts to lower your premiums. For example, bundling your auto and home insurance can be a discount of up to 20%.
- Alberta Grid not considered: Insurance companies must compare a driver’s rate under their current rating program to a driver’s rate calculated for the Grid and charge the lesser of the two rates.
The AIRB has accurate information on auto insurance rates in Alberta. AIRB data shows insurers have been approved to increase rates just 3.17% in the last twelve months (January to December 2022), while inflation is more than 6%. Insurers’ rate filing information is publicly available here.
In Alberta’s competitive marketplace, drivers should explore their options for auto insurance by shopping the insurance market. The AIRB comparative rating tool lets you compare the auto insurance rates of the most common profiles of Alberta drivers.
Click here to learn more about how to reduce your auto insurance rates.
Update (January 24, 2023): Ernst and Young issued a clarification that explains the limitations on the scope of their work.