Why is the auto insurance premium going up in 2020 for many Albertans?
Alberta’s Automobile Insurance Rate Board has removed the 5% cap, which was in place over the last couple of years. This decision allows insurance companies to increase rates ranging from less than 1% to nearly 30% for basic coverage for private passenger vehicles.
Why would insurance companies increase the rate?
This is primarily due to the uprising costs of claims. In recent years, some insurance companies paid 130% of the total collected premium, resulting in financial loss.
What drives the cost of claims?
Vehicles are now more technologically advanced, hence more costly to fix. Other key factors are hail storms, accidents, insurance fraud, and major weather conditions.
What else is happening in the auto insurance industry?
A lot of Albertans are finding it difficult to buy important coverage such as collision and comprehensive that protects the car against accident, theft, hail, etc. Not finding the monthly payment option is another issue.
What can we do to save money on auto insurance and get the right coverage?
Insurance rates are very individualized. It depends on a wide range of factors including your credit, area, age, gender, marital status, occupation, vehicle, insurance history, driving history and many more. The good news is Albertans have choices. Most Canadians buy insurance through an insurance broker, primarily for a customized solution.
How can an insurance broker help?
Buying your home, auto, travel and commercial insurance through a broker has many advantages. At InsureLine Complete, we have access to Canada’s largest insurance companies to find you the best rate and coverage. We work for you, not the insurance company-meaning we represent your best interest. Not only we save our customers money but provide them with impartial advice.
How else can a broker help?
If you have to make a claim, we are there to ensure that you receive fair and prompt payment, to get you back to normal. In the event of a dispute, a broker will act as your advocate with the insurance company to find a solution. Call us to see the broker difference! We provide service in Bangla as well.
Fardin Ahmed
Insurance Consultant-Partner
InsureLine Complete
Fardin.ahmed@insureline.com
4033050457
