Car Insurance Rates Rise in Alberta in the Third Quarter

The Automobile Insurance Rate Board (AIRB) in Alberta has approved several car insurance rate hikes in the province for the third quarter (July to September).

Of the 69 insurers in Alberta, 46 offer private passenger vehicle insurance. Though not all 46 insurers are increasing their rates, AIRB’s third-quarter filing decision shows which insurers were granted permission by the provincial regulator to do so.

The AIRB approves rate changes for basic coverage (i.e. mandatory car insurance), which includes third-party liability and accident benefits coverage, as well as rate changes for additional (or optional) coverages such as collision, comprehensive, and underinsured motorist coverage. The combined rate represents increases for both basic and additional coverages.

While no one wants to see their premiums rise, insurers in Alberta and across Canada are facing tough market conditions – exacerbated by the COVID-19 pandemic – which put many of them in the unenviable position of requesting increases as they pay out more in claims.

Here are the insurance companies that raised their premiums in the third quarter:

• The Co-operators. With 7.26% of Alberta market share, The Co-operators raised basic private passenger insurance rates by 10.65% as of July 22 for new business and on September 15 for renewals. Additional rates will rise by 3.92% and combined rates by 8%.
• Wawanesa. With a 13.8% market share, Wawanesa received AIRB’s approval to increase basic rates by 5.36%, additional rates by 4.43%, and a combined increase of 5%. These changes took effect on September 15 for both new business and renewals.
• Security National Insurance. Owned by TD Insurance, Security National has 11.53% market share. It was approved for a 5.17% increase in basic coverage, 4.71% in additional coverage, and 4.99% for combined coverages for both new business and renewals as of August 1.
• Primmum Insurance. Also owned by TD Insurance, Primmum was approved for a 4.67% increase in basic rates, 5.74% in additional coverage, and a combined increase of 4.99% for both new business and renewals as of August 1. Primmum has a 4.16% market share in Alberta.
• Intact. With 14.89% market share, Intact raised basic rates by 0.22%, additional rates by 0.60%, and combined rates by 0.34%. Those changes took effect on July 1 for new business and on September 1 for renewing customers.
• TD Insurance. TD Insurance has a 0.30% market share in Alberta. It was approved to lift its basic rate by 1.79%, lower its additional rate by 0.20%, and raise its combined rate by 1.03%. These changes took effect for both new business and renewals on August 1.

These latest increases follow AIRB’s approved rate decisions in the second and first quarters.

What can Albertan drivers do about rate hikes?

Many factors drive increases to premiums. Individual driver premiums are influenced by things such as your age, gender, and driving record, where you live, your claims history, traffic convictions and the type of vehicle you drive. General premium increases are not necessarily a reflection of your driving profile. Instead, they may be a reflection of an increase in claims costs and vehicle repairs costs. The growing number of distracted driving incidents may also be driving up the overall cost of direct compensation and collision claims insurance companies process.

In addition to taking advantage of discounts, driving cautiously, and reviewing the coverages on your policy, shopping around for car insurance is your best bet if you are concerned about the cost of your premium.