Rising Rates: AIRB confirms automotive insurance rate increases of up to 7.5 percent to take place in July

Edmonton, Alberta – Alberta’s Automobile Insurance Rate Board (AIRB) recently confirmed that automotive insurance rate increases of up to 7.5 percent will officially take place in July.

As noted in recent online reports, auto insurers in the province can raise rates by as much as 7.5 percent for good drivers each year under pending changes to the auto insurance platform announced last November.

And, according to a 2025 AIRB report, Alberta drivers paid an average annual premium of $1,703 in the first half of 2024, among the highest in Canada.

Additionally, as originally noted by provincial news sources, under the proposed new provincial system, victims of car accidents would not be able to sue parties responsible for injury and would instead be paid by their own insurers at compensation rates set by the province.

Unlike the current system, the new system would offer medical treatment with no predetermined time limit or a permanent impairment sum of up to $295,000 in the case of catastrophic injury.

Heather Mack, spokesperson for AIRB concluded in an online statement that a majority of insurers in the Alberta market have already filed to increase their rates by the full allowed amount. However, many other drivers must continue to wait until July, or 12 months after the 3.7 percent cap in 2024 was implemented.

“Many insurers could justify and provide evidence for a rate increase higher than 10 percent due to current cost pressures,” Mack commented. “But the Ministerial Order limits them to no more than a 10 percent increase in a twelve month period.”