Alberta announces reforms to address high premiums for automobile insurance

The Alberta government is promising changes to reduce high auto insurance premiums, including a cap tied to inflation for those with good driving records.

The Alberta government is promising changes to reduce high auto insurance premiums, including a cap tied to inflation for those with good driving records.

Finance Minister Nate Horner says that as of Jan. 1, drivers with good records cannot have their premiums increased by more than September's inflation rate.

That rate was 3.7 per cent.

The announcement comes as the province moves to lift the freeze on auto insurance rate hikes at year's end.

The freeze was imposed in January to help Alberta drivers paying among the highest premiums in Canada.

The province is also promising to give Alberta’s Automobile Insurance Rate Board more authority to offer ratepayers staggered bill payments and compel insurers to return a portion of payments in high-profit years.

“Achieving affordable auto insurance is a major commitment for our government and this is only the first step in delivering on that promise,” Horner said in a statement Wednesday.