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| Premiums — Less Experienced Drivers
With each claims-free year, drivers move one level down the grid. Drivers with 10 or more years of driving without claims reach the bottom of the grid, capping their rates at 50 per cent of the entry-level premium, and into the competitive market. Even drivers who are on the grid can be offered greater discounts than the grid offers, but no driver can be offered a lesser discount than their level requires. Consumers may use the grid rate calculator on the Automobile Insurance Rate Board website to help determine their premium. Note: since the premium grid sets the maximum chargeable premium for basic coverage, most drivers (approximately 80%) do not pay these premiums. See the Automobile Insurance Premiums Regulation for more information.
Grid premiums are set solely on driving history, region, and liability coverage. The Fair Practices Regulation prohibits cancellation or refusal of coverage on the basis of age, gender and marital status. The "all-comers rule" ensures that a policy is available to anyone who applies. Grid Premiums 1. Compulsory insurance - Entry-Level Premium. At the entry level of the grid, the maximum that an individual (with no driving experience or training, no at-fault claims and $1,000,000 liability coverage) would pay is as follows (new grid effective November 1, 2006):
See the Automobile Insurance Rate Board Order 2-06, which details Grid Premiums effective November 1, 2006. 2. People with driver training would start two levels down the grid from the beginning, for the first two years. 3. For each year of experience, the driver moves one level down the grid, until they reach the bottom of the grid, capping their rates at 50 per cent of the entry-level premium, and into the competitive market. 4. For each at-fault claim, the driver moves five levels up the grid. 5. Conviction surcharges would then be applied for 6. Occasional drivers who have less than eight years experience may be charged a maximum of 25 per cent of their grid calculation, if the primary driver of the vehicle is on the grid. There will be no charge for occasional drivers with more than eight years of experience and clean driving records. See Also: |
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Alberta's auto insurance reforms have seen accessible premiums for less-experienced
drivers, capped by a grid. As drivers gain experience and drive without
claims and convictions, their premiums will improve further.
