Premiums for automobile insurance can increase by up to five percent in Alberta over the next three years, beginning Nov. 1.
The province’s Automobile Insurance Rate Board recently completed an annual review and said in a July 25 news release that it will allow the increase.
“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,” said Alfred Savage, AIRB chair, in the news release.
“A five percent increase, which works out to on average $30 per year, reflects current insurance trends while still keeping premiums at a reasonable level.”
The increase applied to mandatory coverage, which includes third-party liability and accident benefits coverage. It does not include optional collision coverage.
The average cost of claims in 2012 was up significantly, the AIRB said.
More information is available at www.airb.alberta.ca.
