The Jason Kenney government in Alberta will not renew a cap on auto insurance imposed by the former NDP government. That could mean insurance rates in the region will be rising pretty soon.
The United Conservative Party has announced it will allow a 5% cap on increases to auto insurance to expire.
Alberta Finance Press Secretary Charlotte Taillon confirms the Automobile Insurance Rate Board will be responsible for setting auto insurance rates henceforth.
In the meantime, Celyeste Power with the Insurance Bureau of Canada supports the move.
“We’re hoping to see some of the issues addressed within the system, and we’re also looking to just open up the insurance market a little bit more,” she said.
The 5% rate increase limitation applies to an insurance firm’s full private passenger automobile insurance business but not to personal insurance policies.