Poll shows Albertans’ views on auto insurance affordability
Poll shows Albertans’ views on auto insurance affordability | Insurance Business Canada
Motor & Fleet
Poll shows Albertans’ views on auto insurance affordability
Three-quarters of drivers oppose a government-run monopoly
Motor & Fleet
By
Terry Gangcuangco
Nearly three-fourths (73%) of drivers in Alberta want the government to urgently enhance the affordability of auto insurance in the province, according to a recent poll.
The survey, conducted by Yorkville Strategies on behalf of the Insurance Bureau of Canada (IBC), also found that 74% of participants favour increased choice and control over their insurance plans.
Additionally, motorists rejected the adoption of a public auto insurance system or a no-fault scheme that would remove the ability to sue. Seventy percent opposed the concept of a government-run monopoly on auto insurance and 56% disapproved a no-fault insurance model that limits legal recourse and sets stringent controls on treatment for injuries.
Aaron Sutherland, IBC vice president for Pacific and Western, noted: “Albertans want more affordable auto insurance, and they recognize the best way to achieve that is by implementing reforms that allow private insurers to offer more choice in their coverage options.
“The provincial government sets the rules for the coverage that Alberta’s auto insurers must sell. Our industry is ready to help design a new system that gives drivers the power to pick the right coverage, at a price that best suits their needs.”
The poll cited legal costs as an important issue as well, with 74% of respondents pointing to personal injury lawyers and their fees as drivers of increased insurance rates. A striking 81% feel that governmental intervention is necessary to tackle the escalating costs.
According to an MNP report, litigation and legal fees related to insurance claims have risen by 31% in Alberta since 2018, constituting about 20% of premiums at present.
“Legal costs now account for a greater portion of the premiums that drivers pay in Alberta than anywhere else in Canada, and this only continues to grow,” Sutherland highlighted. “The survey results confirm that Alberta drivers understand the impact that legal costs have on the premiums they pay, and they are keen to see government take action.”
In response to the affordability concerns, the Alberta government introduced a ‘good driver’ rate cap last November as a temporary measure while it considered its options.
The IBC previously suggested modifications that would allow drivers more control over their insurance features, such as opting out of cash settlements for minor injuries in exchange for enhanced treatment and care options. These changes, along with regulatory and tax reforms, could potentially reduce average premiums by up to $325 annually.
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