EDMONTON — Alberta Premier Danielle Smith says her government is making major changes to auto insurance, including rate hikes and switching to a predominantly no-fault claims model.
Under the new system, car accident victims in most cases won’t be able to sue the party responsible for their injury and, instead, insurers would pay compensation at rates set by the government.
Until the new model kicks in, insurers will be allowed to raise rates for good drivers up to 7.5 per cent each year, starting in January. If expenses go beyond what’s covered by the standard benefits, injured parties could also sue for out-of-pocket expenses. The province has declined to move toward a publicly delivered insurance system, despite estimates it would save drivers even more money in premium payments.
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