It’s soon going to cost a little bit more to insure your vehicle in Alberta.

Mandatory insurance premiums are going up by five percent, beginning on November 1.

It means the average Alberta driver will pay $30 more every year.

However, insurance companies have the option to implement all or part of the five per cent increase over the next three years.

The Alberta Insurance Rate Board says it approved the rate change because of an increase in injuries and property damage collisions. In addition, the board says it has received less revenue by investments made on premium income as well.

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

The decision only applies to mandatory coverage, which includes third party liability and accident benefits coverage.

It does not include collision or comprehensive coverage.