AMA stopping some motorcycle insurance ahead of new provincial rules

Some motorcyclists have received notice AMA will not be renewing insurance plans after the current term expires. CTV News Edmonton's Evan Kenny has more.

Some motorcyclists are looking for a new insurance provider after the Alberta Motor Association (AMA) sent them notices their policies won’t be renewed, even if they have a clean driving record.

The decision comes in advance of changes to Alberta’s rules around people who are injured in a crash.

Starting in January, if you are injured in a collision, instead of suing the driver who caused it, your insurance would compensate you based on rates set by the province.

AMA says the shift to the Care-First system “significantly expands benefits and coverage for injured Albertans, and we believe that is a great thing.”

The company says it reviews its products and risk tolerance annually and this year is changing its motorcycle coverage “that affects a very small number of motorists who represent a significantly higher injury risk.”

AMA says less than two per cent of its policies are part of the motorcycle policy changes.

“Those impacted are typically less experienced riders, individuals with traffic convictions or prior claims, and/or those operating high‑performance motorcycles,” AMA added.

Motorcyclists say it’s everyone’s job to be safe on the road and be aware of the vehicles around them, no matter the vehicle.

“You just have to be smart. I always ride like everybody on the road is out to kill me,” said Mike Cooper, who’s been riding motorcycles for more than 45 years.

“Most of the accidents that I know (of), back when I worked in the bike business and such, were actually caused by car drivers.”

In a statement from the province, the Office of Treasury Board and Finance says “the AMA has assured us, their decision to adjust how they approach the motorcycle class of insurance is not associated with the transition to Care-First.

“Alberta’s transition to a Care-First auto insurance system is focused on improving care, supporting drivers, and helping stabilize rates, across the industry, over time.”

The change in policy has some motorcyclists concerned about the possibility other companies will follow in AMA’s footsteps.

“Is it just going to be (that) you can’t insure a motorcycle in Alberta anymore,” said Brandon Pritchard, with After Dark Motorcycles.

“These insurance companies are almost just going out on a limb and saying, ‘We are assuming that something is going to happen, and we are assuming we’re going to have to pay for your damages,’ but that’s also kind of what insurance is for.”

Pritchard says one of his customers who wasn’t having their insurance dropped by AMA instead saw it was going to rise by more than $1,000, prompting him to switch companies.

“I hate to say it, but people will just resort to riding with no insurance,” he added.

AMA is the only insurance company CTV News Edmonton could confirm was not renewing some insurance policies ahead of the changes in Alberta’s insurance model.

With files from CTV News Edmonton’s Evan Kenny