Insurance rates may soon be going up as the Automobile Insurance Rate Board mulls over a double digit rate hike.
The board is looking at raising the mandatory part of the rate between 10% and 13%. This week the board heard from stakeholders, which asked for the large increases.
“Our job is to digest that along with a lot of other material and protect the best interest of the citizens of Alberta and set a rate,” says the rate board chair, Alfred Savage.
The independent board goes through this process every year. Over the last 8 years, the board has either kept the rate the same or raised it by just one percent.
Premier Alison Redford said she is confident the board will make the right decision for Albertans.
“I think it would be a shame if there were those sorts of rate increases,” Redford told reporters on Wednesday when asked about the issue, “what we’ve seen historically is that that hasn’t been the case.”
“I’m with her,” agrees Savage, “and ten or thirteen percent is a big increase. I don’t think it will be that big, but it’ll be up to the board.”
The board is expected to make a decision by the end of July.
More information on the rate hikes can be found on the Automobile Insurance Rate Board website.
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