Canadian Drivers Jumping Through Hoops for Insurance Coverage
Drivers in Canada are required to carry proof of insurance when they hit the road. However, a new law in the Canadian province of Alberta meant to protect customers is making buying and renewing policies in that area more difficult than ever.
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Back in December of 2017, the New Democratic Party of Canada, which was in charge of Alberta at the time, put in place a new rule that capped car insurance rate hikes to just five percent. That’s great news for Canadians trying to manage their expenses, but not that great for insurance companies. The Insurance Bureau of Canada says that the new rules are making their member insurers rethink their whole strategy in the region. Some of them are reportedly losing $.30 to every dollar Alberta’s drivers pay for a policy because of low premiums and higher claim costs.
What exactly does this bureaucracy mean for Alberta’s drivers? Lots of headaches when it’s time to renew a policy. Global News reports that some residents report that they are getting long renewal forms in the mail, and in some cases, the insurance premiums were due in a lump sum. For families that don’t have a lot of savings, asking for that much money at a time can be truly debilitating.
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The IBC and its spokesperson hope that they can work with Alberta leadership in Edmonton to find a balance between saving customers money and giving insurers enough money to cover all of its claims. Until then, Alberta drivers should be ready to spend more time than usual renewing their insurance policies.
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