The Automobile Insurance Rate Board (AIRB) completed its 2017 Annual Review process which ultimately determines if auto insurance rates are going to increase or decrease in the upcoming year. The group reviews both personal and commercial vehicle policies for industry losses and determines trends that may affect pricing moving forward.
Alberta’s Private Passenger Rate History
Both basic and additional auto coverage has been on a steady rise since 2012 due to a number of factors, including:
- Increases in the severity of winter weather;
- a weaker Canadian dollar;
- hail storms in southern Alberta’ and,
- an increase in repair costs as a result of more expensive materials and higher labor costs.
Combined, Albertans have seen steady increases each year since 2012.
Impacts of the 2017 AIRB Annual Report
On September 29, the AIRB stated: “after considering all of the oral and written information presented through the open meeting process… the Board is increasing the current Grid rate letel by 10% effective January 1, 2018”.
So what does this mean for your auto insurance policy? Unfortunately, this means you could potentially see up to a 10% increase when you renew your policy.
What’s the “Grid rate level”? The AIRB sets maximum premiums based on a number of factors that make up the Grid Rating System. This system sets rates for basic insurance coverage. Your grid rating will vary depending on your driving history. Each grid rating has a maximum premium, meaning that within each grid rating, you can only be charged up to a certain amount. With the release of this bulletin, each grid rating maximum will receive a 10% increase.
Read the full bulletin here.
Talk To A Broker
The good news is that not every driver pays the maximum for their grid rating. Your final price is ultimately determined by a number of factors. If you have questions or concerns about how this increase may affect your auto insurance policy, chat with a broker at ARC Insurance today to learn about other ways we can help you save money on your insurance.