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

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