Drivers in Alberta will be getting a relief by approximately $30 a month on their insurance rates after an announcement yesterday by the Automobile Insurance Rate Board.
As of Nov. 1, mandatory insurance premiums will drop by five per cent after 2008 saw an increase of the same margin.
“We looked at the ruling on the soft-tissue cap and last year we allowed money for that. This year we clawed some of that back,” said Alf Savage, chair of the AIRB.
Back in June, the Alberta Court of Appeal decided to uphold the province’s decision to allow a $4,504 cap for soft-tissue injuries such as whiplash.
Savage said that the decrease could have been higher, but the costs of car parts and repairs have gone up considerably.
Savage said that the mandatory rates for 60 per cent of a person’s bill.
The AIRB is required by law to review insurance rates once a year and announce their results by Aug. 1.
They have been in effective since 2004 and Albertan’s have seen an 18 per cent decrease since this time.