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Alberta auto insurance reduced


August 1, 2006   by Canadian Underwriter


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Alberta’s mandatory auto insurance premiums are set to drop by 3% as of Nov. 1, 2006.
The reduction will become effective when Alberta drivers renew their mandatory coverage.
Total reductions to Alberta auto insurance premiums have now reduced 18% since the reforms were introduced.
The most recent reduction, which brings the total reductions to 18% since Alberta auto insurance reforms were introduced, is part of the annual review of compulsory auto insurance premiums by the Automobile Insurance Rate Board (AIRB).
“The AIRB has been diligent in following its mandate, and has been open and accountable in the process,” Minister of Finance Shirley McClellan says. “Premium reviews are an important part of auto insurance reform and a good example of how Albertans are benefiting from the process.”
The AIRB says that in setting the new rates, it considered input from Albertans and the board’s consumer representative during three days of public meetings held in June. Input from industry and the Insurance Bureau of Canada was also considered, according to AIRB.
“The AIRB’s primary focus is to make sure consumers continue to have access to fair auto insurance,” Alf Savage, board chair, says. “Overall, with the latest reduction, Alberta drivers will have saved more than (CD)$1 billion compared to rates prior to the reforms being introduced.”
When the automobile insurance reforms went into effect on October 1, 2004, Alberta drivers received a 5% reduction. On July 1, 2005, rates were reduced another 6%. The initial annual review process in 2005 further reduced premiums for mandatory coverage by 4%.


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