Alberta Minister of Finance Travis Toews speaks to the media in Calgary, Alta., Tuesday, Sept. 3, 2019. THE CANADIAN PRESS/Jeff McIntosh

Alberta starts up review on car insurance, won’t bring back rate cap

Finance Minister Travis Toews says Albertans are paying some of the highest rates in Canada

Alberta has launched a review of auto insurance in the province to ensure that the industry can remain viable and drivers can get affordable coverage.

Finance Minister Travis Toews says Albertans are paying some of the highest rates in Canada but are having trouble getting critical protections, such as comprehensive and collision coverage.

Auto insurance rates had been capped at five per cent for the last couple of years, but the government did not renew that cap in August and some drivers have since reported getting notices of steep rate hikes in the new year.

Insurers have said that under the cap they were losing money in Alberta, given a rise in payouts due to issues including car theft, injury claims, and high repair costs tied to more expensive technology in vehicles.

Toews says a three-member committee has been asked to find solutions that work for all parties within the existing privately delivered system.

READ MORE: Provincial budget cuts, insurance rate hike hits Wolf Creek Public Schools hard

The committee is to report back in the spring, and Toews says the government will take action as soon as possible after that.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Supporting a friend with mental health issues

AHS: Do you have a friend who just doesn’t seem to be their usual self?

PHOTOS: Ponoka Curling Club hosts Alberta Junior Curling Tour Event

The Ponoka Curling Club hosted its first-ever Alberta Junior Curling Tour Event… Continue reading

Jeffery Kraft of Ponoka remembered for being loving, well-liked

Kraft passed away on Dec. 15, 2019, in Lacombe at 20 years old

Deserving Ponoka student appointed to National Youth Council

Yael Witvoet will now be able to advocate for causes on a national scale

Province investigating death of Samson Cree Nation youth in care

16-year-old found deceased outside in Rocky Mountain House

Officials reaching out to those in contact with Canada’s first coronavirus patient

The illness has sickened at least 1,975 people and killed 56 in China

Canada’s basketball community mourns Kobe Bryant after helicopter crash

Bryant was an 18-time NBA all-star who won five championships

‘Devastated’: Fans, celebrities remember Kobe Bryant after his death

Bryant played all of his 20-year career with the NBA with the Los Angeles Lakers

Kobe Bryant, daughter killed in California helicopter crash

Bryant entered the NBA draft straight out of high school in 1996

Canadian Lunar New Year celebrations dampened by coronavirus worries

But Health Minister Patty Hajdu said today that the risk of infection is low

UPDATE Human remains found in Manny’s Motel ruins

UPDATE RCMP Major Crimes Unit Investigate Fatal Fire in Wetaskiwin

‘Presumptive case’ of coronavirus in Canada confirmed by Ontario doctors

Man in his 50s felt ill on his return to Canada from Wuhan, China

‘My heart is going to bleed’: Bodies brought back to Canada following Iran plane crash

Remains of Sahar Haghjoo, 37, and her eight-year-old daughter, Elsa Jadidi, were identified last weekend

Most Read