July 7, 2003

Government addressing consumer concerns with rising auto insurance rates

Calgary… Personal responsibility and a safe driving record will be the focus of new rules for auto insurance in Alberta. “As a government we have a responsibility to ensure Albertans have access to insurance that is fair, affordable and accessible,” said Finance Minister Patricia Nelson.

The government will move towards a reasonable entry-level premium that will provide incentives for safe drivers while motorists with traffic violations and at-fault accidents will pay more.

“We have received input from both insurers and civil trial lawyers about a solution to rising auto insurance rates,” said Nelson. “More importantly, we have received numerous letters, phone calls and e-mails from consumers across Alberta who feel the auto insurance system is not based on fairness and they want the government to do something about it.”

Medicine Hat MLA Rob Renner conducted a cross-Canada fact-finding mission on auto insurance systems. “Rising insurance rates are an issue in many parts of the country. The direction we have chosen today will help us develop a made-in-Alberta solution,” said Renner.

The government will immediately begin developing tough new regulations, taking into consideration the input already received from consumers, the insurance industry and civil trial lawyers.

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For media inquiries, please contact:

Jerry Bellikka Director of Communications Alberta Finance (780) 427-5364 or cell (780) 718-5699 Dial 310-0000 for toll free access outside of Edmonton.