The Alberta government says it will not approve any more rate hikes for auto insurance on private passenger vehicles until the end of the year.
The government says in a news release that it shares concerns from the public and is imposing the cap while it works to find long-term solutions.
The move comes more than three years after the United Conservative Party government lifted a cap on hikes imposed by its NDP predecessors.
Finance Minister Travis Toews had previously resisted calls to reinstitute the cap, calling it an ineffective stopgap solution while pointing to reforms his government made in 2020 to stabilize rates over the long haul.
The government now says factors like inflation and supply chain issues for auto parts are affecting rates in the short term and must be addressed.
Premier Danielle Smith had called for her government to take action on insurance late last year, after a report commissioned by the Insurance Corporation of British Columbia found Albertans are paying among the highest rates in Canada.