The Consumers’ Association of Canada released the first results of a national study on auto insurance rates it has conducted across Canada. “The study found that consumers in Alberta pay an average of 30% more for their auto insurance than BC consumers”, said Mr. Cran. The average auto insurance rate in Alberta was $1,714 while it was $1,324 in BC.

The first results are a detailed comparison of rates between Alberta and British Columbia. To compare rates between the two provinces the study used 800,000 rate quotes in Alberta and British Columbia across 300 rating groups representing the key variables such as age, gender, vehicle, location, driving record and insurer.

“This is the largest independent study ever conducted on auto insurance rates in Canada”, said Mr. Bruce Cran, President of the Consumers’ Association.

A comparison of the province’s two capital cities shows that Edmonton’s average rate was $1,864 vs. Victoría’s of $944. “Due to just announced rate reductions Victoria’s will now be even lower”, said Mr. Cran.

A comparison of rates between Lloydminster, Alberta vs. Loydminster, Saskatchewan also showed that by simply living across the street a Saskatchewan driver pays 50% less than their Alberta neighbour. “This illustrates that there is something fundamentally wrong with the auto insurance system in Alberta”, said Mr. Cran.

“Consumers in Alberta have had to suffer from high auto insurance costs while the insurance industry was making billions of dollars of record breaking profits”, said Mr. Cran. Government regulations were changed reducing benefits paid to crash victims”, said Mr. Cran. “Crash victims got shafted while insurers put the money in their pockets”.

“But rates are not the whole story”, said Mr. Cran. While consumers in Alberta pay more they also get an inferior insurance product compared to BC consumers. “It’s like a consumer driving a new car off the dealer lot in Edmonton or Calgary and discovering that they have a 1950’s auto insurance product protecting them”, said Mr. Cran.

Contact: Mr. Bruce Cran, President, Consumers’ Association of Canada
Tel. 604) 418-8359