Alberta: Mandatory auto insurance premiums to decrease by 5%

The Automobile Insurance Rate Board (AIRB) is directing insurers to reduce premiums for basic auto insurance by five per cent, effective November 1, 2009.
The decrease is mainly a reflection of the Alberta Court of Appeal’s decision to uphold the province’s Minor Injury Regulation, which restores the cap on the amount an individual can claim for minor soft-tissue injuries.  The AIRB also took into account expected claims and administrative costs for insurance companies, as well as declining investment rates and increasing claims costs. 

Today’s announcement shows how auto insurance reforms are working for Albertans,” said Alf Savage, chair of the AIRB. “Since the introduction of the reforms in 2004, rates for compulsory auto insurance coverage have decreased by 18 per cent.  As a result of this year’s decision, drivers, on average, will see a reduction of $30 per year in premiums.”

The AIRB’s role is to encourage an efficient and effective automobile insurance market with rates that are predictable and fair for both motorists and insurance companies. The process for adjusting insurance premiums is open and transparent. Public meetings and presentations by interested stakeholders were held over two days in June and more than 800 Albertans were surveyed. 

The AIRB’s mandate is to set premiums for mandatory auto insurance coverage for private passenger vehicles, monitor premiums for optional coverage, and review and approve rating programs for new insurers entering the Alberta market.  The AIRB annually sets the maximum premiums for mandatory coverage that all automobile insurers charge. 

The board is required to announce any industry-wide adjustment that results from its annual auto insurance rate review by August 1 of each year. 

For more information, visit the board’s website at or call 780-427-5428 (toll free at 310-0000).