Rate Cap Clapback: IBC says Alberta auto insurance rate cap ‘does nothing to improve affordability’

Rate Cap Clapback: IBC says Alberta auto insurance rate cap ‘does nothing to improve affordability’

INSURANCE
Edmonton, Alberta — If there are two things the insurance industry and the “Real Housewives” series have in common, it is a stupefening propensity for drama and scandal, as has unfolded Thursday when the Alberta government announced an immediate cap on auto insurance rates through to the end of the year. Announced in a joint release from the province's ministry of finance and affordability and utilities, the Alberta government says it will be “taking action on insurance” through this rate cap, as well as a mandate for insurance companies to allow customers to pay premiums through payment plans. "Affordability is a primary challenge facing many Albertans as rising inflation makes it challenging for many to afford necessities, including auto insurance," said minister of affordability and utilities, Matt Jones. "We are…
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Alberta government’s decision to freeze auto insurance rates

Alberta government’s decision to freeze auto insurance rates

INSURANCE
EDMONTON, AB, Jan. 26, 2023 /CNW/ - Today's announcement of the government's decision to freeze insurance rate filings for private passenger vehicles is disappointing for insurers and, most importantly, for consumers. A rate freeze does nothing to improve the affordability of auto insurance in the near term and only pushes today's challenges down the road.Insurance Bureau of Canada (CNW Group/Insurance Bureau of Canada)Rate caps have resulted in significant negative consequences for consumers when undertaken previously in Alberta and elsewhere. During Alberta's last provincial rate cap from 2017 to 2019, consumers faced challenges securing the coverage they needed, as insurers were forced to take action to remain viable and continue paying customers' claims. Premiums still increased by 12% when the rate cap was in place.in Californian, drivers are also living through…
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Alberta government unveils an auto insurance freeze to mixed reviews

Alberta government unveils an auto insurance freeze to mixed reviews

INSURANCE
The Alberta government announced they are putting a freeze on auto insurance rates, and not everyone is happy about it. Minister of Finance Travis Toews and Minister of Affordability and Utilities Matt Jones made the announcement in a release this morning. In the release, the duo state that many people in Alberta are concerned with auto insurance affordability, which Toews says this freeze will help with. “We share Albertans' concerns about the rising cost of living during the current inflation crisis. We will continue to meet with members of the insurance industry to find additional longer-term solutions for automobile insurance,” Toews said. Along with pausing rates until the end of the year, the Alberta government says they will continue working on solutions to lower auto insurance rates. “Affordability is a…
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Insurers decry Alberta’s auto insurance rate freeze decision

Insurers decry Alberta’s auto insurance rate freeze decision

INSURANCE
But this rate stamp has been received poorly by the industry. “A rate freeze does nothing to improve the affordability of auto insurance in the near term and only pushes today's challenges down the road,” a statement from the Insurance Bureau of Canada (IBC) said. IBC's statement, which was alberta-governments-decision-to-freeze-auto-insurance-rates">released on the same day Alberta put a hold on rate increases, also explained that rate caps have resulted in “significant negative consequences” for consumers, pointing to previous instances in Alberta's history. “During Alberta's last provincial rate cap from 2017 to 2019, consumers faced challenges securing the coverage they needed, as insurers were forced to take action to remain viable and continue paying customers' claims. Premiums still increased by 12% when the rate cap was in place.” The Insurance Brokers Association…
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Stretch Your Dollar: Saving on car insurance

Stretch Your Dollar: Saving on car insurance

INSURANCE
Conn. (WTNH) — It's Car Insurance Day, and with the cost of everything going up, we're Stretching Your Dollar with the best moves you can make this month to ensure you're paying the best rate. It's February and the winter months may have you checking your home and vehicle to ensure they're prepared for colder temperatures. While you're looking for ways to save, experts say not to overlook your car insurance — an expense that can be easy to forget about is just as easy to get lowered. MSN has four auto insurance moves you can make to ensure you're paying the best price. The first is to shop around for a better rate. Doing a little research can lead to lower premium rates, so it may be well worth…
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California Minimum Car Insurance Requirements You Need to Know About

California Minimum Car Insurance Requirements You Need to Know About

INSURANCE
California requires drivers to carry insurance to cover the costs of damages and injuries to others in a car accident. The state requires drivers to carry a minimum of $15,000 of bodily injury liability insurance per person, $30,000 of bodily injury liability insurance per accident, and $5,000 of property damage liability insurance. This coverage is known as 15/30/5 coverage.These minimums are far from enough coverage in many cases, though. In addition to liability coverage, drivers may want to consider adding extra coverage such as uninsured/underinsured motorist coverage, which helps pay for damages and injuries caused by uninsured or underinsured drivers.Let's dive into the other California auto insurance requirements and look at the penalties drivers might meet if they don't carry the right insurance.See how much you could save on auto…
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Price is the top reason why consumers want to drop auto insurance providers

Price is the top reason why consumers want to drop auto insurance providers

INSURANCE
Many Americans who were thinking of dropping their auto insurance coverage said they were motivated by price. (iStock) The majority of Americans who were considering dropping their auto insurance providers cited prices as the main motivator, according to a survey by data company AnalyticsIQ. Fifty percent of respondents who were thinking about dropping their auto insurers reported that their policies were too expensive and 37% said they would switch carriers if they found a better deal. Almost all respondents said they had each of the major policy coverage types including liability, collision, medical payments, personal injury and comprehensive, as well as uninsured and underinsured, the survey said. Among respondents who did not have this particular type of coverage, 37% said they opted out of coverage because it was too expensive.…
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The North Carolina Rate Bureau wants a 28% increase in auto insurance

The North Carolina Rate Bureau wants a 28% increase in auto insurance

INSURANCE
RALEIGH, NC (WTVD) -- Tired of paying soaring prices for groceries and gas? If the North Carolina Rate Bureau gets its way, you can add car insurance to the growing list of skyrocketing expenses.The Rate Bureau filed a request to increase the cost of auto policies by 28.4%, Insurance Commissioner Mike Causey announced Thursday.If the rate hike is approved, it will go into effect Oct. 1.The NC Rate Bureau represents auto insurance companies in the state. By law, the bureau must submit auto rate filings with the NC Department of Insurance every year by Feb. 1.ALSO SEE: 'Want to save on your car and home insurance? How one call could save you hundredsA release from the DOI did not specify why the auto insurance sector requested such a substantial hike.Car…
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What auto insurance discounts are you eligible for?

INSURANCE
To find out what types of auto insurance discounts Canadian drivers can avail of, Insurance Business checked out the policies of some of the country's top car insurance providers. Here are the most common rate-reduction schemes these companies offer. The list below is categorized into discount types. Read more: Survey: Majority of Canadians lack auto insurance literacy Policy discounts 1. Bundling discount All insurers considered for the list offer discounts for policyholders who combine different insurance products. Bundling auto and home insurance with the same provider, for example, allows homeowners to slash up to 20% from their car policies. Tenants can also combine their auto and renters' insurance to save on premiums. 2. Multi-vehicle discount Another popular money-saving perk, insurance companies typically reduce premiums by as much as 15% for…
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What to do before renewing your auto insurance

INSURANCE
Every year, one thing's for certain. If you own a car, you'll have to renew your auto insurance. For many Canadian drivers, they'll shop around once when they first get insurance, then just let their insurance renew automatically without thinking much about it. But if you're one of the many people who aren't going into the office as often anymore, skipping the grocery aisles in favor of online ordering, and are driving less than pre-2020. In general, you should really know that less driving can lead to savings on your auto insurance premiums. To find out if your new driving habits could help lower your premiums, it all starts with one thing: knowing when your policy renews each year. The first thing you need to do is to know your…
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