Understanding the Alberta insurance rate pause for personal vehicles
The Alberta government announced on Jan. 26, 2023 that private passenger vehicle insurance rate increases will be paused until the end of 2023.
You may be wondering how this change will affect your policy and if your rates will be staying the same or changing. As your trusted broker, we want you to be informed about how this news would impact your auto policy.
The government has paused insurance companies’ ability to apply for rate increases for the rest of the year. However, there are many factors that affect how much you pay for your auto insurance:
- Rate increases approved by the province prior to Jan. 25, 2023, will stay in effect.
- If you have had changes to your driving record, such as an at-fault claim or tickets resulting in demerits.
- Changes to your auto insurance policy such as adding or deleting a vehicle or amending coverages on existing vehicles.
- The province of Alberta currently uses a system called the Alberta GRID, which determines the maximum allowable mandatory liability insurance premium rates based on your driving record and the number of years you’ve had a driver’s license. Due to a 10 per cent GRID increase that had already been approved for 2023, many drivers will continue to see their rates fluctuate when it comes time for renewal.
All the examples above can cause your premium to increase or decrease from year to year. It’s important to connect with your broker about any life changes that may affect your insurance.
We take a hands-on, customer-first approach. As an independent brokerage, we work with a number of different auto insurance companies to ensure our clients get the policy that is tailored to your needs. If you have any questions, please reach out to your insurance broker directly.