FOR IMMEDIATE RELEASE
EDMONTON – Nathan Ip, MLA for Edmonton-South West, and Alberta’s New Democrat Shadow Minister for Technology and Innovation, will introduce Motion 504 Monday afternoon in the Legislature asking all members to vote in favour of limiting auto insurance rate increases.
Motion 504 reads:
Be it resolved that the Legislative Assembly urge the Government to address skyrocketing automobile insurance premiums by indexing the automobile insurance rate cap by annually adjusting the cap based on the percentage change in the all-items Consumer Price Index (CPI) for Alberta published by Statistics Canada.
“Albertans are already paying some of the highest auto insurance premiums in the country. Since the UCP scrapped limits in 2019 and reintroduced new caps that remain well above inflation, auto insurance premiums have skyrocketed. It’s time for the government to take control of these rising costs for Albertans” said Ip.
This motion asks the government to cap future increases for auto insurance rates to the Consumer Price Index (CPI). The current rate cap for 2025 and 2026 is 7.5 per cent for ‘good drivers’, and averaging as high as 12.5 per cent for those deemed as ‘non-good drivers’. At the existing rate cap, reports have projected an 88 per cent increase in auto insurance premiums in Alberta in the next decade.
“This is a straightforward, practical way the government can actually help with rising costs instead of letting it spiral out of control. I hope that UCP MLAs will join Alberta’s New Democrats in voting in favour of this motion, and in favour of taking action on affordability.”
MLAs are expected to vote on Motion 504 before the end of Monday.
Quick Facts:
- In 2019, the UCP eliminated the cap on increases for auto insurance premiums
- Between 2019 and 2020 alone, auto insurance rates increased by an average of 24% in Alberta
- While a pause was implemented in 2023, in 2024, the UCP government re-introduced an auto insurance rate cap but for ‘good drivers’
- In 2025, the UCP government increased that rate cap to 7.5% for ‘good drivers’, with those determined as ‘non-good drivers’ seeing average increases of at least 12.5%
- MNP reports that auto insurance premiums will increase by 87.6% in the next decade if current rate caps remain
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