The Auto insurance marketplace in Alberta has been volatile over the past several years due to an insurance rate cap that was imposed by the previous government that limited auto insurance rates to a maximum 5% increase each year.
While that was seemingly great for the consumer, it created a vortex of unprofitability for insurance companies, some of whom were paying out $1.30 for every $1.00 they collected. This was due to many factors, such as increased technology in vehicles increasing the cost of repair, increasing bodily injury claims, and insurance fraud.
We know, boo hoo, the big bad insurance companies were not making money – but it is a fact and ultimately these companies are in business to make money. With the removal of the rate cap, insurance companies are taking increases of insurance rate that would have been spread out over those years that the freeze was in place. They are also getting choosier about who they want to offer coverage to – rewarding good drivers, people who have multiple policies (such as their home or tenants with the same company), and those with good credit.
Our brokers will help you navigate these waters, in some cases – you may be better off staying where you are as opposed to moving insurance providers until the marketplace or your driving record improves. A good broker will give you this advice!
Speak with an L&Y broker to explore your options today.Start a quote
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