Recently in Alberta, you may have heard that the province’s Automobile Insurance Rate Board (AIRB) has approved a five per cent auto insurance rate hike beginning November 1, 2013. Although it sounds ominous, it’s important to remember that the increase will not apply to everyone across the board. If you are a safe driver with a good driving record, the rate increase probably won’t affect you.
But if your yearly renewal results in an increase to your Calgary auto insurance rates, it’s time to begin working with a broker. Bow Valley Insurance provides access to several leading insurance providers, and offers free rate comparisons so you are able to immediately see the difference we can make in lowering your auto insurance rates.
The Automobile Insurance Rate Board (AIRB): Why Calgary Auto Insurance Rates Are Rising
While some insurance companies had requested an auto insurance hike of 13 per cent – citing deterioration due to 3rd party liability bodily injury claims – the AIRB approved a compromise at five per cent. Plans are to go ahead with raising auto insurance rates throughout the province.
Telling motorists the increase is fair, predictable, and similar to many other jurisdictions, the AIRB says that insurance companies will have the option to apply all or a portion of the rate increase. According to the AIRB, since the cost of bodily injury claims jumped significantly in 2012, a double-digit increase could just have easily been made.
Who Is Most Likely to See an Increase in Their Calgary Auto Insurance Rates
Insurance companies have some latitude in applying the rate increase, and underwriters will likely review premiums for many drivers:
- Safe drivers with clean driving records are less likely to be charged higher premiums
- Drivers with points against their license but have not been involved in an accident may see an increase
- Drivers that have less than perfect records and have been involved in an accident are likely to see an increase in their premiums
Especially if your driving record is less than perfect, it’s a good idea to work with a broker who can shop around for you and help you find a lower rate.
- Increase the amount of your deductible
- Remain claims-free
- Drive safely so your record is clean
- Combine your auto and home insurance policies with the same company
- Ask about multiple-car and other available discounts
Bow Valley Insurance Urges Everyone to Drive Safely
Since the recent rate hike is due to an increase in bodily injury claims, Bow Valley Insurance urges every Albertan to obey the rules of the road, wear seat belts, and drive safely! Here are some simple ways to decrease the likelihood you’ll be involved in an accident:
- Obey the speed limit and other signs on the roadway
- Avoid following the vehicle in front of you too closely
- Always use turn signals to alert other drivers of you intentions
- Approach intersections with caution
- Avoid distractions such as your cellphone while driving
Calgary Auto Insurance From Bow Valley Insurance
Bow Valley Insurance has access to several leading insurance providers and our job is to find you the best coverage at the best rate. In fact, that’s our promise! Our specialists will work with you to determine your insurance needs and then find the company that has the right coverage as well as the best discounts you’re eligible for, so you pay the lowest possible premiums.
Alberta’s auto insurance rate increase may not apply to you, but if it does, our free rate comparison lists several leading insurance companies to choose from. Request a free Auto Insurance Quote today. Contact Us in person if you have any questions.