December 17, 2003 Temporary freeze on auto insurance rates in Alberta is now law Edmonton… The final step in freezing automobile insurance rates at October 30 levels has been taken. The Order in Council freezing rates for up to 18-months until the new reforms are put in place is now fully in effect after receiving Cabinet’s approval. “This last piece in the process will give Alberta drivers temporary relief as we continue working towards the full reform package,” said Finance Minister Patricia Nelson. “The freeze is now law and we expect insurance companies will comply with it. Insurance companies will receive a letter from the Office of the Superintendent of Insurance outlining details of the freeze as well as copies of the regulations.” Policyholders who have received their renewal notice should still pay it rather than let their coverage lapse. “We’re working with the industry on how to reconcile the accounts of customers who may be entitled to receive a refund or a credit,” said Nelson. Each company uses a different computer system and will need to determine the best process to accommodate the freeze. The freeze does not affect any scheduled premium discounts for good drivers, rate increases for drivers with recent bad records or other situations such as adding an additional driver or a vehicle change. However, if a person's vehicle or driving status has not changed, his or her rates should not change during the term of the freeze. Drivers could see their rates increase during the freeze if they have an at-fault accident, traffic violations resulting in demerits, a convicted criminal code offence relating to the operation of an automobile, if they change vehicles, change addresses (move from one territory to another), or add a child to their policy. A new Fair Practices Regulation has also been approved to ensure that individuals with good driving records have access to insurance at affordable rates. “Insurance companies cannot deny coverage, terminate a policy or refuse to renew unless the driver’s history warrants it,” said Nelson. “This regulation will ensure fair treatment for consumers.” Both regulations apply to mandatory and optional insurance costs for all classes of vehicles including private passenger, commercial, recreational vehicles and motorcycles. Backgrounder Auto insurance freeze passed, fair practices law protects drivers Edmonton… Changes to Alberta’s insurance system will come through orders under the Insurance Amendment Act that was passed during the fall sitting of the legislature. The orders passed today will freeze premiums for drivers and protect drivers by insuring that those with good driving records will have access to fair insurance.
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