The Insurance Bureau of Canada (IBC) has launched a province-wide advertising campaign promoting savings under Alberta’s Care-First auto insurance system, as new figures show about 310,000 drivers will pay more under the reforms.
The campaign, called “Yes, Really!”, will run on TV, radio, digital and social media over the next two months, and is designed to reach each Albertan at least 18 times. It coincides with renewal notices issued from November 1, which reflect Care-First coverage and pricing ahead of the system taking effect on January 1.
According to the Automobile Insurance Rate Board’s (AIRB) analysis of approved insurer filings, about 2.75 million of Alberta’s 3.1 million insured vehicles will see lower premiums. More than half of those will save 15% or more.
Average savings are about $300 across all drivers. Young drivers and families with young drivers are expected to save the most, with many seeing reductions of about $3,000. Middle-aged drivers are expected to save about $525, and seniors about 20%. IB reported the AIRB’s initial findings in September.
About 310,000 drivers are expected to see increases, most averaging about 5%. IBC said these include drivers with histories of at-fault claims, driving infractions and high-risk behaviour, whose premiums were previously capped under Alberta’s Grid system. With the caps removed, IBC said, good drivers will no longer subsidize their rates. Premiums will also more closely reflect the expected cost of injury care, which is why motorcyclists, who face a higher risk of serious injury, may pay more.
“Starting today and moving forward, the vast majority of drivers will begin to see something in their auto insurance renewals that they haven’t seen for a very long time – savings,” said Aaron Sutherland, IBC’s vice president for Pacific and Western Canada.
The AIRB said its figures are averages based on approved filings analyzed in September and aren’t guaranteed for every driver.
The reforms remain contested. The Alberta Civil Trial Lawyers Association has questioned the costing behind the projected savings, and critics have argued that limiting lawsuits reduces injured people’s access to full compensation.
For brokers, the campaign’s message will bring in calls from clients expecting savings. Most will see them, but brokers should be ready for the roughly one in 10 who won’t. That group includes drivers with poor records who lose the protection of the Grid caps, and motorcyclists whose premiums now reflect injury costs. IBC is pointing those drivers to their insurance representatives, so brokers can expect to spend time shopping these risks across Alberta’s market or explaining why prices have gone up.
