The Alberta government is making changes to auto insurance, including rate hikes and switching to a predominantly no-fault claims model.
Premier Danielle Smith announced the changes at a news conference in the legislature.
Under the new system, car accident victims in most cases won’t be able to sue the party responsible for their injury and, instead, insurers would pay compensation at rates set by the government.
By cutting down litigation costs, the government estimates that when the new system is in place in 2027, it could lead to savings of up to $400 per year for the average insurance premium.
It’s also promising better support and benefits for those hurt in collisions.
Until the new model kicks in, insurers would be allowed to raise rates for good drivers up to 7.5 per cent each year, starting in January.
This report by The Canadian Press was first published Nov. 21, 2024.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.