The UCP government is hoping to make automobile insurance more affordable for Albertans.
Alberta Finance Minister Travis Toews will be introducing legislation on Thursday to address spiking insurance rates.
“They are not affordable,” Toews told Global News on Wednesday. “Insurance premiums have been going up in an unsustainable way.
“The main driver pushing up insurance premiums is, in fact, injury claim costs. Those costs have gone up approximately 26 per cent in the last four years.”
Toews will discuss the changes proposed in Bill 41 at a Thursday news conference.
Alberta’s NDP, meanwhile, is calling on the province to freeze auto insurance premiums until 2021.
“Given this government’s track record, I can’t help but wonder if the solution will be more financial gain for insurance companies and more pains for Albertans,” said NDP leader Rachel Notely at a Wednesday news conference.
The former NDP government had imposed a five per cent annual rate increase cap for auto insurance in the province, but the UCP government did not renew the regulation, which then expired in August 2019.
Insurance rates began spiking, and in December 2019, the UCP government appointed a panel to troubleshoot Alberta’s auto insurance issues.
Read more: 6 ways to cut your auto insurance rate
Toews has said previously the five per cent cap won’t be coming back, calling it a “Band-Aid on a wound that was festering.”
— With files from Tom Vernon
© 2020 Global News, a division of Corus Entertainment Inc.
View original article here Source