The province of Alberta is the most populous of Canada’s three prairie provinces due to its 3.7 million residents. Neighbouring provinces to the west and east respectively are British Columbia and Saskatchewan. The capital city of Alberta is Edmonton, while Calgary is its largest city. Alberta’s contribution to the Canadian economy comes from the petroleum industry, agriculture and technology. It has the highest per capita GDP of any province in Canada and is thus considered to have the strongest economy of all the provinces in Canada.
Lots of Insurance Options in the Province
The Canadian government requires auto insurance for Albertans and other Canadian residents. Albertans have many different auto insurance options, with over seventy private car insurance companies operating out of the province. Each company tries to appeal to clients by offering their own unique mix of prices, services and types of coverage.
Recent Changes to the Car Insurance Industry in Alberta
The Alberta government introduced several changes to the car insurance system in 2004 in an attempt to help make auto insurance more affordable to drivers. The government justified making these changes due to years of poor performance on the part of insurance companies that were desperately trying to survive. In order to bolster the insurance industry and thus generate healthy competition and lower prices, Alberta introduced changes related to minor driving related injuries and court awards for pain and suffering. For example, the Alberta government instituted standards to be followed in the case of diagnosing and treating minor injuries designed to cut down on ineffective and wasteful treatments. The government also instituted a cap on court awards for pain and suffering for minor injuries to cut down on people suing for far more money than was justified in their particular case, as in the instance of someone asking for $20,000 in compensation for a sprained ankle.
Another change in the car insurance industry in Alberta is that insurers are not allowed to refuse anyone basic coverage. The Alberta government also instituted a maximum premium that insurers are allowed to charge and many of these changes have helped lower the auto insurance rates for Albertans.
The province contains over 180,000 kilometres of highways and roads and around 50,000 kilometres of those roads are paved. Like residents of any other highly industrialized area with highways, many Albertan residents own and drive cars.