|
May 18, 2004 Drivers to get premium rollback when insurance reforms in place Edmonton... Good drivers in Alberta will get a minimum five per cent reduction in their mandatory auto insurance premiums when the government insurance reforms come on stream later this year. “We promised that good drivers will see reduced premiums under the government reforms,” said Finance Minister Patricia Nelson. “There has been a lot of speculation about what our reforms would mean for consumers, but this shows we are keeping our promise to put consumers first.” Inexperienced drivers and people with recent claims will pay rates for mandatory coverage capped by a new grid. The grid rates for inexperienced motorists will be significantly lower than their current market rates, more than 75 per cent lower in some cases. As drivers gain experience, their premiums will drop below the grid into the regulated competitive market. The approximately 80 per cent of drivers who pay premiums lower than the grid will see an across-the-board cut of five per cent. Policyholders who pay monthly will see their premiums reduced from the implementation date forward, and policyholders who paid up-front will receive refunds or credits. “By mid-2005, good drivers whose circumstances haven’t changed will have seen no increase in their premiums since October 30, 2003. Moreover, with this rollback good drivers will see reductions of at least five per cent,” said Rob Renner, MLA for Medicine Hat, who has been leading the reform implementation. “This rollback and the freeze will together save consumers approximately $300 million in premiums,” said Nelson. “I want consumers to see real benefits in their wallets from these reforms.” - 30 -
For media inquiries, please contact:
|
||||||||
