Limit on auto insurance hikes for 'good drivers' kicking in too late for some Albertans

The provincial government's 3.7 per cent cap on auto insurance rate increases for Albertans deemed "good drivers" — announced last fall — was touted as a measure to help drivers with costs in the short-term as it works toward long-term reforms.

But some eligible drivers have noticed that the cap isn't kicking in for them until 2025, and they're still seeing increases way above 3.7 per cent this year.

Calgarian Prabin Joshi was recently informed by his insurance company that he qualifies as a good driver under the program, but the cap doesn't apply until his next increase — next January.

His premium increased by $500 this year, up 18.5 per cent from last year.

"I don't have any driving convictions, but still, I'm paying more and more each year," said Joshi.

He says that's a problem, especially when the province hasn't said how long the program will last, or whether it'll get rid of it once reforms are made.

"Let's say the government announces any new changes to that policy, then it's no use for me. So that's kind of sad for me," he said.

Delays are dependent on when insurance companies file their rate changes, explained Insurance Bureau of Canada vice-president Aaron Sutherland.

Although the program took effect in January, some companies — including some of the province's largest insurers — didn't file their rates until this month. It can take up to a year for those changes to be seen on drivers' premiums, he said.

"If you've just renewed and your auto insurance company hasn't filed rates quite yet, you're not going to see the impact of the good driver rates cap until a year from now," said Sutherland.

Alberta drivers pay the second-highest insurance premiums in the country.

The program has been criticized in the past. 

Alberta NDP Opposition house leader Christina Gray told reporters last fall that the definition of a "good driver" is too narrow.

As a reminder, a "bad" driver includes those who: