March 30, 2005 – Premiums for compulsory auto insurance will be coming down as several companies, making up about 50 per cent of the Alberta market, have filed reduced premiums with the Auto Insurance Rate Board.
The new premiums generally range from four to seven per cent lower than current rates, and will come into effect between April 1 and July 1, 2005. Other insurers have indicated they also intend to file reductions soon.
More information: List of companies offering premium reductions for basic coverage (pdf)
The reductions will apply to private-passenger-vehicle policies below the grid � about 80 per cent of the market. Drivers whose premiums are set by the grid will not see the reduction.
More information: How the premium grid works
Drivers who buy their insurance policies before the implementation dates will receive the five-per-cent reduction effective October 1, 2004, and the further reduction on their next renewal if their circumstances haven’t changed. There are no provisions for rebates.
The auto insurance premium freeze remains in effect until October 2005, meaning no increases will be considered in this summer’s Auto Insurance Rate Board review. Premium levels have not increased since October 30, 2003 when the freeze order came into effect.