Edmonton: Effective November 1, 2012 and in compliance with Order No. 02-12 from the Alberta Automobile Insurance Rate Board, many Alberta insurance companies have increased basic coverage (Third Party Liability and Accident Benefits) premiums on private passenger vehicles by 5%. This applies only to grid rated premiums, and does not impact non grid rated premiums. Many drivers will be unaffected, as grid premium only applies to certain insured risks in Alberta.
As per the Alberta Insurance Rate Board press release, both representatives of the insurance industry as well as the Alberta Insurance Rate Board agreed that, due to increases in the frequency of bodily injury claims and number of property damage claims as a result of automobile accidents, a significant increase was warranted. Another factor was an overall decrease in revenue from investments made from insurance premiums.
According to the AIRB press release, Alfred Savage, AIRB chair, said the following: “We knew that an increase would be necessary, but we wanted to take a more measured approach in order to maintain balance in the system. A five per cent increase, which works out on average to $30 per year, reflects current insurance trends while still keeping premiums at a reasonable level.”
For more information, visit the AIRB’s website at www.airb.alberta.ca or call 780-427-5428 (toll-free) at 310 0000.