When Alberta announced changes to its automobile insurance system aimed at lowering costs, I was skeptical—but I figured I’d wait and see what happened.

So far, I’m getting a first-hand look at the chaos and uncertainty that the changes the province has proposed have introduced to the system. 

Several years ago, in a quest to find the best deal, we switched to a broker for our automobile insurance. He found us an insurance supplier at a decent rate, and we have been with them for quite a while.

However, we got word several weeks ago that due to the changes introduced by the provincial government, the insurance company we have been dealing with is reducing its footprint in the province. 

Now, we’re scrambling to find a new provider.

While my broker is on the hunt for us, using a leftover work perk, I decided to try getting a quote through a big-name insurance company I’d previously dealt with.

I got in touch with their local office and was told, again due to the provincial changes, that I would have to get in touch with the company’s corporate office to get an automotive policy quote. 

I called—and got stuck on hold.

Three and a half hours later, I finally hung up—angry and still without having spoken to a single human being. 

And from what I’m hearing, my story isn’t unique.

The governing United Conservative Party sold this change as an improvement to the automotive insurance system that was going to reduce costs for everyone. 

However, I fail to see how it is helping matters any if insurance companies are leaving the system. 

Several companies, including Sonnet Insurance and Aviva Insurance, have either withdrawn from Alberta or announced their intention to do so, citing a lack of profitability and other challenges. 

Some of these departures have come about since the government announced the changes it is making to its new “Care-first model,” which replaces the traditional tort system with a no-fault approach, delivered by private insurers rather than through litigation or public systems. 

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable,” said Premier Danielle Smith, in a spring 2024 meeting when the changes were announced. “When it’s implemented, our new, privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

While affordable insurance would definitely be good, I think the province needs to address another problem – getting people access to the insurance that remains. 

If my experience thus far is any indication, things are not looking good for this new insurance system, thanks to the uncertainty introduced by the United Conservative Party’s reforms.

With my insurance expiring at the start of August, I’m now in a race—not just to find coverage, but to find a company still willing to offer it.

My broker is optimistic we’ll find a new policy in time for our renewal; that is the benefit of having an established relationship. I just worry about those new drivers out there trying to find insurance for the first time.

The province has made an already tenuous insurance situation worse, while claiming to stand with consumers by promising lower insurance costs..

Until Albertans can reliably access affordable coverage, any promised benefits of this new system remain theoretical at best.

–Kevin Sabo is the editor of the Stettler Independent and a journalist for Black Press Media