Changes to Alberta's auto insurance system have seen good drivers paying premiums comparable to other western provinces, and new and inexperienced drivers paying significantly less than before the reforms were implemented.

Motorists with traffic violations and at-fault accidents will continue to pay premiums that reflect their driving practices, ensuring that drivers are personally responsible for the premiums they pay.

Go to our Grid Rate Calculator

 

The primary role of the Automobile Insurance Rate Board in this process is to regulate premium levels for basic coverage:  third party liability limits of $200,000 to $2,000,000 and accident benefits.  The board will also monitor additional coverage and approve the rate plans of new insurers that want to sell auto insurance in Alberta.

Each year, the AIRB will review and adjust premium levels for basic coverage under the grid rating program, and set the allowable percentage change for individual insurers’ rating programs.  (Consumers may use our grid rate calculator to help determine their premium. However, because the premium grid sets the maximum chargeable premium for basic coverage, most drivers - approximately 80% - do not pay these premiums.)

The board will also review applications by insurers for offset adjustments, which permit insurers to adjust one or more rating variables under their rating program for basic coverage by up to 10%, provided the overall effect on their book of business is revenue neutral. This allows insurers the flexibility to adjust their premiums to suit their business and allows for competition in the marketplace while keeping premiums stable.

Also, the board will review and approve private passenger rating programs for new insurers entering the province.

The AIRB is also responsible for monitoring rating programs for optional coverage, such as collision or glass coverage, through a “file and use” system.