Alberta Premier Danielle Smith has decided to keep the cap on auto insurance premium increases for good drivers at 7.5 percent. This decision comes amid pressure from insurance companies, which have been advocating for higher rates. Smith emphasized her concern for the public, stating, "I'm concerned about the people. The people have to feel confident they’ve got a good price for insurance, their health will be taken care of and their cars will be fixed."

The cap prevents insurers from imposing a potential $400 increase in premiums that could have occurred without government intervention. Smith's government had previously considered lifting the cap, which would have been politically risky. The current cap allows for a significant increase, but it is less than what insurers had sought.

In recent discussions, Smith noted that good drivers in Alberta should not expect drastic hikes in their insurance costs. "I don’t think that’s an unreasonable expectation," she said. The government has also tightened the definition of a good driver, stating that anyone with a minor traffic conviction in the past three years would not qualify. Examples of minor offenses include failing to wear a seatbelt or having an obstructed license plate.

Despite the cap, the battle with auto insurance companies is ongoing. Smith acknowledged that some within her party believed insurers needed more flexibility. However, she maintained that the government’s role is to ensure that drivers are not overwhelmed by sudden cost increases. "If we’re forcing people to buy the product, it’s up to us to make sure they’re getting the lowest premiums possible," she said.

Smith described auto insurance as a "necessary evil" and expressed her commitment to protecting consumers. She also mentioned that in limited cases, drivers still have the option to sue. The government plans to overhaul the insurance system in the coming years, promising potential savings for consumers.

As the situation develops, Albertans will need to monitor their insurance renewals to see how these policies affect their premiums. The ongoing discussions between the government and insurance companies indicate that the issue of auto insurance in Alberta is far from resolved.