Albertans need a break on auto insurance, NDP say

Less driving during the pandemic is leading the NDP to ask the UCP to put reductions in auto insurance in place for Albertans.

by Morinville News Staff

Alberta’s NDP Official Opposition are looking for the UCP to cut Albertans a break on auto insurance during the pandemic and called on the government Friday to introduce relief from rising automobile insurance costs.

“Let’s be clear — very few Albertans are driving much beyond a weekly trip to the grocery store,” said NDP Finance Critic Shannon Phillips in a release Friday. “Because of this, insurance companies are generating enormous profits. Still, we are hearing from some Albertans that have actually seen their insurance rates increased during the period of self-isolation.”

Phillips and her fellow NDP believe rates should actually be coming down and are proposing an immediate freeze retroactive to April 1 on all general insurance premium increases. That freeze would remain in effect until the government-mandated social distancing is lifted.

The Opposition also want a blanket 25 per cent premium reduction for March, April and May payments, as well as an immediate policy extension, retroactive to April 1, for all consumers whose policy was set to expire, with the same Terms and Conditions, until government-mandated social distancing is lifted.

The NDP cite major American insurance companies, including Allstate and American Family Insurance who have voluntarily reduced their insurance premiums during the COVID-19 pandemic.

“More can be done to help Albertans make ends meet in these difficult times. For many Albertans, their vehicle has been little more than a 3,000-pound paperweight parked on their driveway. We believe a 25 per cent reduction and a retroactive freeze on rates is reasonable,” Carson said.

“Initially, it looked like insurance companies would follow the lead of major American insurance companies and cut their rates sharply. But they haven’t and Albertans need help now. Jason Kenney has the legal authority to step in and protect drivers. We are waiting to see if he’ll side with the insurance companies, or with struggling Albertans.”

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4 Comments

  1. Interesting.
    I received an e mail from my insurance company with the enclosed form to fill out and get my rebate for driving less. No request for such made by me.
    I prefer a free market where I can choose the services I pay for based on a competitive business community, not “regulated” ( or supported) by government.
    Government regulations don’t protect taxpayers, they protect bad service and business from failing, and bring down the quality and value choice provides.

  2. Yeah, the raise in our insurance this year for no reason sucked. I haven’t had an accident or made ea claim on my insurance since I was a teen, yet my rate went up? That’s ridiculous!

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