The government of Alberta has put a hold on auto insurance rates for the remainder of 2023.

The government states that previously approved rate increases will still be implemented.

The Alberta government has announced that it will not approve any increases in auto insurance rates for the remainder of 2023. In a joint statement, Finance Minister Travis Toews and Affordability and Utilities Minister Matt Jones announced that the province will also explore short-term and long-term measures to address the issue of rising insurance rates.

It should be noted that some rate increases may still occur if they have already been approved or if a driver is involved in an at-fault claim or receives a ticket. Additionally, drivers may see increases if they move to a new address or insure a different vehicle. The freeze applies only to private passenger vehicles.

Minister Toews stated that the pause will provide the government with time to collaborate with the insurance industry to find solutions to keep auto insurance premiums as low as possible. He emphasized that this is not a rate cap and is only a temporary measure.

The Insurance Bureau of Canada expressed disappointment with the province's decision and stated that a rate freeze does not address the immediate affordability issues of auto insurance and merely postpones the challenges. They called on the government to undertake urgent reforms to address the underlying costs that are driving up premiums for Alberta drivers.

This move comes several years after the UCP government decided not to renew the 5% rate cap imposed by the previous NDP government. This has prompted criticism from NDP finance critic Shannon Phillips who called the announcement a "fake freeze" and criticized the UCP for allowing premiums to increase by as much as 30% during the pandemic without taking action.

The recent decision to halt insurance rate increases contradicts previous statements made by Toews and the United Conservative Party government, who have maintained that rate caps are ineffective and only provide temporary relief for underlying issues. In December 2019, the government established a committee to investigate the root causes of the increases. The committee's report, which was released to the public in October 2020, suggested that the province should abandon its current tort-based insurance system and adopt a private, no-fault model. Although the government implemented a number of smaller, short-term measures, Toews previously stated that the government would thoroughly review the more transformative recommendations. On Thursday, Toews acknowledged that the committee's report was "a good report by a very credible committee." When asked if he would revisit the recommendations in search of solutions to the current situation, Toews stated that "everything is on the table" and the government will be considering all options to ensure that Albertans are receiving the best value for their insurance premiums and to maintain a sustainable system in the long term.