In May 2018, an online rate comparison site for insurance, mortgages, loans and credit cards released its Q1 2018 Auto insurance Price Index. The site, LowestRates.ca, is Canada’s only price index that uses proprietary data to track average cost of car insurances in Canada on a quarterly basis. For this quarter the report found that the price of auto insurance in Alberta and Ontario have been trending upwards, increasing by 2.46% in Alberta. However, in Atlantic Canada the price has been falling. Since the end of Q1 2017, Albert has seen a 6.04% increase in auto insurance which is a significant increase in just a year. As a breakdown, men in Alberta are paying 6.67% more from 2017 to 2018 and women are paying 4.99% more. The fluctuating insurance rates are directly related to costs incurred by providers. This means, if the number of claims rises in a given quarter for one insurer, then their premiums will increase. The increase in claims can be due to the higher number of distracted driving accidents, and the rising costs of new vehicle repairs and fraud. Will Alberta’s insurance rates keep increasing for this quarter? Or has it hit its max and stable out?
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