Alberta Minister of Finance Travis Toews speaks to the media in Calgary, Alta., Tuesday, Sept. 3, 2019. THE CANADIAN PRESS/Jeff McIntosh

Alberta Minister of Finance Travis Toews speaks to the media in Calgary, Alta., Tuesday, Sept. 3, 2019. THE CANADIAN PRESS/Jeff McIntosh

Alberta starts up review on car insurance, won’t bring back rate cap

Finance Minister Travis Toews says Albertans are paying some of the highest rates in Canada

Alberta has launched a review of auto insurance in the province to ensure that the industry can remain viable and drivers can get affordable coverage.

Finance Minister Travis Toews says Albertans are paying some of the highest rates in Canada but are having trouble getting critical protections, such as comprehensive and collision coverage.

Auto insurance rates had been capped at five per cent for the last couple of years, but the government did not renew that cap in August and some drivers have since reported getting notices of steep rate hikes in the new year.

Insurers have said that under the cap they were losing money in Alberta, given a rise in payouts due to issues including car theft, injury claims, and high repair costs tied to more expensive technology in vehicles.

Toews says a three-member committee has been asked to find solutions that work for all parties within the existing privately delivered system.

READ MORE: Provincial budget cuts, insurance rate hike hits Wolf Creek Public Schools hard

The committee is to report back in the spring, and Toews says the government will take action as soon as possible after that.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, said growing COVID-19 case numbers continue to be a concern in the province. (Chris Schwarz/Government of Alberta)
Alberta announces 1,077 new COVID-19 cases Thursday

There are currently 14,052 active cases in the province

Bids for Kids poster
Wolf Creek Youth Foundation online auction gets ‘overwhelming’ response

Santa’s Bids for Kids auction to benefit youth programs in Rimbey, Ponoka

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, said the 500 deaths from COVID-19 in the province are a tragic milestone. (Photo by Chris Schwarz/Government of Alberta)
Alberta hits ‘tragic milestone’ with more COVID-19 deaths

Province up to 500 COVID-19 deaths, adds 1,265 cases

Alberta premier Jason Kenney declared a public health state of emergency Tuesday and sweeping new measures as COVID-19 cases in the province continue to rise. (photo by Chris Schwarz/Government of Alberta)
Kenney declares state of public health emergency as COVID-19 cases rise

High schools shift to online learning, businesses face new restrictions

File Photo
Sylvan Lake Town Council asks for a mask bylaw to be brought forward for consideration

The bylaw would require face coverings in all indoor Town-owned and operated facilities

The corporate headquarters of Pfizer Canada are seen in Montreal, Monday, Nov. 9, 2020. The chief medical adviser at Health Canada says Pfizer’s COVID-19 vaccine could be approved in Canada next month. THE CANADIAN PRESS/Ryan Remiorz
Health Canada expects first COVID-19 vaccine to be approved next month

Canada has a purchase deal to buy at least 20 million doses of Pfizer’s vaccine,

People wear face masks as they pose next to a Christmas display in Montreal, Sunday, November 22, 2020, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
How to tell family their Christmas gathering is too risky and you’re not going

Dr. Hurst says it’s best to frame the conversation from a place of care, stressing safety precautions.

A sign instructs people to wear masks in downtown Calgary on Friday, Oct. 30, 2020. Pub and restaurant owners are trying to figure out how to comply with a stricter COVID-19 measure in Alberta that dictates only six people from the same household can sit at one table. THE CANADIAN PRESS/Jeff McIntosh
Brewpub owner pleased Alberta not closing sit-down dining as COVID-19 cases soar

Alberta’s caseload of COVID-19 infections has been growing for weeks

This undated photo issued by the University of Oxford shows of vial of coronavirus vaccine developed by AstraZeneca and Oxford University, in Oxford, England. (University of Oxford/John Cairns via AP)
Canada can make vaccines, just not the ones leading the COVID-19 race

Canada has spent more than $1 billion to pre-order seven different developing COVID-19 vaccines

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at B.C. campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

A pedestrian wears masks while out walking in front of the Alberta Legislature as the COVID-19 numbers spike in Edmonton on Tuesday November 24, 2020. THE CANADIAN PRESS/Jason Franson
Doctor says Alberta restrictions not enough to reduceCOVID-19 strain on hospitals

Mithani notes people are still allowed to gather indoors at large places of worship and in bars,

Most Read