Mandatory auto insurance may get a little cheaper thanks to a five per cent decrease courtesy of the Automobile Insurance Rate Board.
The decrease stems from the AIRB’s annual insurance-rate review and was based on input from Albertans, the board’s consumer representative and actuary, and insurers during an open meeting in June.
“This reduction is primarily the result of a projected decline in the number of bodily injury claims in the province this coming year,” chair Alfred Savage said.
But Savage added whether that translates into actual savings is up to the private insurance companies.
“It does not include optional collision or comprehensive coverage,” Savage said.
Doug Noble of the Insurance Bureau of Canada said it’s critical to ensure customers are served by a healthy marketplace and insurance companies are kept solvent.
“It remains to be seen whether the AIRB’s latest adjustment, which ignored the recommendations of its own actuary, will achieve that goal,” Noble said.