Auto insurance revamp blocked

A lberta's Automobile Insurance Rate Board is looking to revamp how drivers' premiums are calculated in the province, by moving away from an annual industry-wide rate adjustment, which could produce more options and potentially better rates for motorists.
But the proposal has been rejected by the Stelmach government, which maintains the current system is working well.
The province doesn't foresee major reforms and certainly won't make any changes pending an Alberta Court of Appeal ruling, expected shortly, that will determine whether a$4,000 cap on pay-outs for soft-tissue injuries is unconstitutional.
The rate board, which regulates the annual premium changes for basic automobile insurance in Alberta, wants to scrap the "one-size-fits-all" industry-wide adjustment and instead review companies on an individual basis to see whether their rate proposals are appropriate.
The new model would pro-vide more insurance options for drivers, reduce market uncertainty and lower rates over the long term, the board argues, while still allowing the AIRB to ensure companies don't apply exorbitant premium increases.
"You could shop some more so you might be able to find a better rate,"explains Merle Taylor, the rate board's consumer advocate. "I don't think it's in anyone's interest if the (annual rate caps) are the same across all companies."