Insurance Rate Hike Will Hurt Albertans!

Insurance Rate Hike Will Hurt Albertans!

Canada is a great country because it welcomes immigrants from all over the world. When immigrants are asked to choose where they want to live in Canada, a lot of people pick Toronto or Vancouver. Seldom will they pick Alberta, because it is very cold in this province and just a few days back, it was the coldest place on the planet.

However, during the Oil Boom there were many jobs in Alberta so people from across the nation had to move to the province even though they do not like the weather because this was where the opportunity was. This is the reason for the influx of immigrants and temporary foreign workers in the province.

But today, Alberta is a Province that is lost in the shuffle. Its Capital City, Edmonton, has the highest unemployment rate in Canada. Calgary’s Commercial Spaces are mostly empty. Those who moved here have moved back or migrated to another country. This once oil rich province is suffering heavily because oil prices went down and its hope to build a pipeline that will bring its products out to the global market was blocked by the courts.

Recent developments look positive as the Trans Mountain Pipeline is now on its way to being built but this is not an overnight thing that can turn the economy around. The economic downturn started in 2008 and this recession is still ongoing and on its 12th year. Everyone was upbeat when Conservative Leader Jason Kenney was elected as the new Premier of the province. Kenney symbolized hope for change to turn things around and make life better for every Albertan.

Alberta is a good place to live in because it only has 5% GST compared to other provinces with higher taxes. But recent news does not make Alberta a better place to live in. Apart from the very cold climate, the cost of living has drastically crawled up. Look at the cost of food ten years ago, 5 years ago and then today. How much has it gone up? To add to the burden, the Provincial Carbon Tax that Kenney promised to get rid of once got elected will be replaced by a Federal Carbon Tax that the Premier has no control of. And it does not end there. Insurance rates are going up in the province from 10% to 30%.

Car insurance rates and Condo Insurance are going up because the UCP Government has lifted the cap of 5% established by the NDP. To be fair to the Kenney government, they say that even if they lifted the cap, rate hikes still need to be approved by the Automobile Insurance Rate Board. Insurance Companies say they are losing money. The AIRB has approved the rate increase. What do you think? Are the insurance companies losing money? With the current economic situation in the province, the increases in insurance premiums are akin to pushing a dead animal off a cliff. Because how can Albertans afford a higher insurance rate when the province is still in recession? There are no jobs and the cost of living continues to rise. 10 to 30% is a lot. What I am positive about is that no one in Alberta welcomes this new insurance hike and this will hurt every household.

My humble opinion would be to split the increase into 3 years or stagger it so it is not so bad. How about you? What do you think? Feel free to send us your comments and suggestions on what the insurance companies or the province should do. Our email is albertafilipinojournal@gmail.com

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