Le Lézard
Classified in: Business
Subject: SVY

Legal costs driving up price of auto insurance in Alberta

New report shows legal costs account for roughly 20% of premiums for mandatory coverage

EDMONTON, AB, Sept. 26, 2023 /CNW/ - A new report from consulting firm MNP shows that legal fees and other costs associated with lawsuits following collisions are having a significant impact on auto insurance premiums in Alberta.  

MNP found that Alberta's auto insurance market faces the same challenges from inflation and supply chain disruptions as other jurisdictions across Canada. However, litigation costs stand out as a major cost pressure that is contributing to the premiums drivers pay in Alberta.

Key findings in the report include:

"Auto insurance premiums should help those injured recover following a collision, not line the pockets of personal injury lawyers," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "It's time drivers were given more control over their auto insurance and the ability to choose new product offerings that mitigate these costs and provide savings."

The vast majority of those injured in auto insurance collisions ? approximately 80% ? sustain relatively minor injuries. As highlighted by MNP, Alberta's one-size-fits-all approach to auto insurance leaves drivers no choice but to pay for these mounting legal costs. That's why reforming the auto insurance system, to give drivers the ability to choose new coverage options that avoid legal costs for minor injuries, is the best way to improve affordability moving forward. IBC has put forward a reform proposal that does this, and would reduce premiums by an average of $200 while doubling the amount of preapproved treatment and care to those injured in collisions.

"Alberta does not need to move to a full no-fault model like other jurisdictions - where drivers lose the right to sue - to address the legal costs facing our auto insurance system," continued Sutherland. "But something has to be done to mitigate the impact these legal costs are having on the premiums drivers pay. IBC's Enhancing Care & Expanding Choice proposal puts consumers first, by protecting the right to sue while also ensuring that those injured in collisions recover quicker and more fully."

To learn more about IBC's proposals to the Alberta government, including short-term measures that would reduce premiums by a total of $325, visit www.betterwaytosave.ca.

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow us on X (Twitter) @InsuranceBureau or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.

SOURCE Insurance Bureau of Canada

These press releases may also interest you

at 12:39
Charvi Gupta, a Director at Getzler Henrich & Associates LLC (getzlerhenrich.com), one of the nation's oldest and most respected middle-market corporate restructuring and operations improvement firms, has been honored as one of the American...

at 12:35
Caring Transitions, the leader in senior relocation and transition services, continues to expand its services across the country with its latest location. Caring Transitions of Dix Hills is owned and operated by Alisha and Michael Singh. Armed with...

at 12:30
Thanks to the generosity of Delta Air Lines, Atlanta Habitat for Humanity broke ground on four new homes in Browns Mill Village this August. Dedications for all four homes were held in October. This remarkable achievement set a new record for Delta's...

at 12:30
Health Data Movers, a "Best in KLAS" healthcare technology services firm, is thrilled to announce its strategic partnership with Workday as a certified Workday Advisory Services Partner. This collaboration marks a significant milestone in Health Data...

at 12:30
Global compliance technology solutions and services provider Sovos reports that its global tax rate calculation engine and database continues to provide industry-leading performance and reliability amid increasing sales during the year's peak...

at 12:29
Mobile Communications America, Inc. ("MCA"), the leading provider of wireless communication solutions that enhance the safety, security, and operating efficiency of workplaces today, announces the acquisition of Communications Services, Inc. ("CSI"),...

News published on and distributed by: