A second insurance provider has announced they are pulling out of the Alberta market, and experts warn prices could be going up for drivers.
In Edmonton, motorists say they’re already paying too much.
“I’m paying more than I was in B.C. I think so, I don’t really keep track. I just know that I’m okay,” said one Edmontonian.
Aviva and Sonnet Insurance will both be phasing out their operations in the province by the end of the year. A press release on Aviva’s website says costs have exceeded premiums, saying litigation is one of the biggest factors.
The Insurance Bureau of Canada agrees, saying in an email, that the provincial government imposed rate caps that came into effect in early 2023 are also partly to blame. Saying auto insurance companies in Alberta are losing 10 cents for every dollar of revenue.
Saying that fewer insurance options for Albertans to choose from could drive up prices.
Adding, “As the cost of auto claims rise higher and insurers unable to obtain actuarially justified rate changes, companies are being forced to scale back their offerings to remain viable. Some are being forced out of the market entirely. This is making it more difficult for many Albertans to secure the coverage they need.”
Early last month, Alberta Premier Danielle Smith shot down the idea of government-run public auto insurance, that a report found would lower costs for Albertans.
“It’s tripled, I pay 400 a month,” said another Edmontonian.
Some drivers agree with the premier. One woman says she’s paying a lot for insurance — despite having some claims — but doesn’t know if public insurance is the answer.
“It’s just the same costs under another banner. I think the issue is that we have way to many cars on the road now.”
CityNews has reached out to the Alberta Finance Minister’s office for comment on insurance providers leaving the province and what that will mean for drivers.