Drivers in Alberta will pay more for auto insurance in November after the Automobile Insurance Rate Board allowed insurers to hike rates by five per cent.

Insurance companies can now implement all or part of the increase, an average of $30, over the next three years.

The board allowed insurers to raise rates a similar amount last year.

While the number of injury claims is not rising appreciatively, the average cost of claims is rising significantly, pushing insurance companies to seek a double-digit increase, a claim supported by the board's actuary.

"We knew that an increase would be necessary, but we wanted to take a more measured approach in order to maintain balance in the system," said Alfred Savage, board chair.

"A five per cent increase, which works out to on average $30 per year, reflects current insurance trends while still keeping premiums at a reasonable level."

Since 2004, the board has reduced premiums by 13 per cent.

The hike applies only to mandatory coverage, which is required by law and includes third party liability and accident benefits coverage.

Optional collision or comprehensive coverage are set by individual insurance companies and monitored by the board.