Two companies will stop offering automobile insurance in Alberta.
Aviva Direct is withdrawing its auto and home insurance services from Alberta effective January 2025. For customers, that means they’ll have to find another insurance company when their current policy expires because Aviva won’t renew it.
Sonnet is phasing out its auto insurance in Alberta later this year. For customers, that means they’ll have to find a different insurance provider when it’s time to renew their coverage. Sonnet’s property insurance is unaffected by this change.
An Alberta government spokesperson said Aviva Direct and Sonnet represent about one per cent of the insured vehicles in Alberta.
“For Aviva, claims costs have exceeded premiums collected in Alberta for many years,” the company explained on its website.
“In particular, litigation costs are the biggest factor driving up auto insurance premiums for Albertans. We acknowledge that the Alberta government has launched a consultation on auto insurance reforms and we are committed to work with the government to find solutions for Albertans and insurers.”
Aviva Direct customers with questions about their policy can call 1-855-788-9090.
Sonnett attributed the decision to stop offering auto insurance to “the current operating situation for insurance companies in Alberta.”
Justin Brattinga, spokesperson for the ministry of finance, said Sonnet and S&Y (a subsidiary of Aviva) are the only companies to withdraw services in Alberta and the province is not aware of any others leaving.
“Alberta’s insurance market, like any free market, is frequently subject to shifts,” he said in a statement to Global News.
“We recognize Albertans are struggling with rates and acknowledge industry’s concerns about increasing cost pressures. This is why we are working on long-term reforms to make sure Albertans have access to affordable insurance and to stabilize and sustain the auto insurance industry.
“The auto insurance survey closed on June 26, and we are analyzing the results. More than 16,000 Albertans filled out the survey, which focused on how best to enhance affordability, stability, simplicity, accountability and care.”
— with files from Morgan Black, Global News
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