UCP need to reinstate auto insurance cap, says MLA Phillips
By Trevor Busch - Lethbridge Herald on April 28, 2022.
LETHBRIDGE HERALDtbusch@lethbridgeherald.com
Recent claims from the UCP that auto insurance rates might soon be relaxed don’t align with the government’s own budget projections, says NDP finance critic and Lethbridge-West MLA Shannon Phillips.
“The UCP’s own budget projections show that over the next three years, your car insurance premiums are expected to increase by 14 per cent above population and inflation growth,” said Phillips during a press conference on Wednesday where she spoke to media. “That means Albertans will pay $891 million more in car insurance premiums over and above population growth and inflation. The bottom line here is there is no relief in sight for Alberta drivers, only more pain, after already being punished by rate increases under the UCP. This is further proof of why we need the NDP rate cap reinstated, and further proof the UCP can’t be trusted to put the interests of Albertans ahead of their friends in the insurance industry.”
Phillips argues the UCP’s removal of the previous government’s auto insurance rate cap has represented an escalating financial burden for everyday Alberta drivers.
“Almost immediately after lifting that cap on rate increases, rates actually increased, and dramatically. Many Albertans saw double-digit increases to their premiums, some going up by as much as 30 per cent. Those rate increases continued through 2020 despite the pandemic, despite the fact that people were driving a lot less. We have heard from Albertans who have abandoned driving their car because they couldn’t afford their insurance payments.”
After the UCP released the 2020 annual insurance report earlier this month, Albertans were able to see the profits the insurance industry has been making since the UCP removed the rate cap.
“Insurance company profits soared in 2020 after the UCP lifted the rate cap,” said Phillips. “We found out in that report that auto insurance companies collected an additional $385 million in premiums in 2020 compared to 2019. Albertans are rightfully concerned about what is to come because they simply do not trust the UCP to look out for them. The cost of everything is already going up under the UCP. We are paying more in income tax, property tax, tuition, interest costs on debt and utilities all thanks to specific choices made by the UCP.”
“Alberta drivers cannot go on like this.”
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