NDP calls for auto insurance bill freeze to protect Albertans – Red Deer Advocate

Alberta NDP Leader Rachel Notley is calling for a one-year auto insurance premium freeze to save Albertans $360 million on their insurance bills and combat the rising cost of life.

“More and more Albertans are grappling with the rising cost of living and making tough choices to keep their vehicles on the road. Freezing these rates will provide predictability for Albertans’ bills and put more money in their pockets for necessities like food, clothing and, of course, gas,” Notley said in a statement.

The call follows the release of the Superintendent of Insurance’s 2020 annual report, which found that the auto insurance industry charged Alberta drivers $385 million more in premiums in 2020 than in 2019, despite the fact that many drivers spend less time on the road.

The NDP said while other Canadians saw rebates, Alberta businesses collected $1.3 billion more in premiums than they paid in claims, boosting profits and boosting gross margins. . Meanwhile, more than half of all Albertans say they are $200 away from being unable to meet their monthly financial obligations.

‘Auto insurance companies are making huge profits off the backs of Albertans after the UCP lifted the cap on insurance premiums and that’s not true,’ said NDP Finance Critic , Shannon Phillips.

The NDP says UCP Finance Minister Travis Toews has publicly said rates are falling, but ignores the fact that last year’s rates soared as high as 30% for certain drivers, as there continue to be rate increases at certain companies.

The NDP said there have been five rate hikes this month alone:

• Aviva Insurance Company of Canada: 4.98%.

• Sonnet Insurance Company: 2.04%.

• Dominion of Canada General Insurance Company: 5.01%.

• National Security Insurance Company: 2.52%.

• Primmum insurance company: 5.02%.

The NDP said that based on revenue growth projections from the Government of Alberta’s tax on auto insurance premiums, Budget 2020 projects Albertans will pay $891 million more over the next few months. next three years, taking into account inflation and population growth.

“The UCP is not telling Albertans the truth about auto insurance costs,” Phillips said.

Topical tips
Like us on Facebook and follow us on Twitter


Source link

Justin D. O'Neill