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| Premiums
Overall, with the latest reduction of three per cent effective November 2006, Alberta drivers have seen an 18 per cent total reduction in premiums and have saved more than $1 billion compared to rates prior to the reforms being introduced. Inexperienced drivers are eligible for significant reductions in their premiums based on their driving records as they gain experience. 
Drivers whose claims-free experience puts them below the bottom of the grid pay no more than 50 per cent of the entry-level premium for their region. Most drivers will pay less than 50 per cent. Experienced drivers with good records pay premiums below the grid, in a competitive market that offers premiums comparable to other western provinces. After 15 years of experience, one at-fault claim would not push the driver's premium above the lowest price of the grid. Drivers that continue to drive without at-fault claims or violations will move back down the grid until they are again below the grid in the fully competitive market. Less experienced drivers pay premiums on the grid based on their driving record. New drivers enter the grid at a set premium. Based on their driving history, drivers will move down the grid one level for each year without an at-fault claim, or five levels up the grid per claim. Occasional drivers who have less than eight years experience may be charged a maximum of 25 per cent of the grid calculation, if the primary driver for the vehicle is on the grid. Under the old system, the occasional driver could be charged up to 50 per cent of the market rate. There is no charge for occasional drivers who have more than eight years experience and clean driving records. » Premiums for inexperienced drivers
» Premiums for good, experienced drivers Coverage See automobile insurance coverage for information on what coverage you are required to have in Alberta; what type of coverage is optional; who is covered in your auto policy; and being in an accident with an uninsured or hit-and-run driver. Resolving disputes over premiums A three-level process was established to resolve consumer concerns with premiums during the transition to the new system. The dispute resolution mechanism is designed to help consumers who believe their premium is being incorrectly calculated, or that inappropriate rating criteria are being used to determine the premium. See more information on resolving disputes. |
Alberta
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Reforms to the auto insurance system in Alberta have seen good drivers
with experience – about 80 per cent of drivers – paying premiums comparable
to other western provinces in the competitive market, and a premium
grid that sets premiums for new and inexperienced drivers and those with
poor driving records.