Grid rating system
The grid rating system was developed in 2004 to establish the maximum rate insurance companies can charge for basic coverage third-party liability (bodily injury & property damage tort), accident benefits, and direct compensation property damage (DCPD). Insurance companies must compare a driver’s rate under their current rating program to a driver’s rate calculated by the grid and charge the lesser of the two rates. The AIRB sets the maximum premium for third-party liability and accident benefits. The DCPD premium is based on insurance company rates.
On November 21, 2024, the Government announced the Grid would be repealed effective January 1, 2027 and there will be no replacement.
Grid rate for basic coverage
What the grid covers
The grid applies only to basic auto insurance coverage. This coverage includes third-party liability (bodily injury & property damage tort), accident benefits, and direct compensation property damage (DCPD).
The AIRB sets the rates (also known as premiums) for third-party liability and accident benefits, and your insurance company sets the rates for DCPD. Your insurance company also determines the rate for additional coverage such as collision, comprehensive, all/specified perils endorsements.
Who is grid rated
Less than 10 per cent of Alberta drivers are grid rated, comprised mostly of new and less experienced drivers with less than eight years of driving experience.
How your rate changes
New and less experienced drivers with driver training start at 10 per cent below the base rate, or entry-level premium (Grid step -2). Their rate can also decrease as they gain experience and drive without claims or convictions.
Every year a grid-rated driver goes without an at-fault claim in third-party liability coverage, their rate is reduced five per cent. This can continue until their rate is reduced to a maximum of 60 per cent under the base rate.
Conversely, each at-fault claim increases their rate by five steps. Convictions and at-fault claims result in surcharges on your insurance rate.
Grid rate calculator
The AIRB’s Grid Rate Calculator will help you calculate your grid rate and explain how the grid rating program works.
Consumer disclaimers for the grid rate calculator
The Grid Rate Calculator works best by entering the most accurate information possible. Information entered is not tracked or collected.
Insurance companies will calculate your grid rate based on your driver’s abstract and information from other insurance companies.
In most circumstances, the Auto Insurance Premiums Regulation requires insurance companies to charge the lesser of the following two rates for basic auto insurance coverage:
- The rate determined by your insurance company
- The grid rate
Some of the circumstances that allow insurance companies to charge the grid rate rather than a determined possible lower rate are:
- You had three or more at-fault claims during the past six years
- You had a combination of five or more minor or major convictions in the past three years;
- You had one or more criminal code convictions in the past three years;
- You had two or more major convictions in the past three years;
- You were convicted with one or more offences of fraud relating to auto insurance in the past 10 years.
If you are concerned about the accuracy of the rates your insurance company charges, contact your agent, broker, or direct writer. If this does not resolve your concerns, you may contact the complaint liaison officer for your insurance company.
Featured resources
Grid Guidance
Sets the rules and parameters for how insurers calculate, apply, and interpret Grid premiums under the regulatory framework.
Establish Initial Grid Step Placement
To be used as a quick reference for establishing the initial Grid step placement – more information may be required to provide an accurate Grid premium calculation.
Alberta's Grid System
To protect Albertans, the AIRB sets the maximum price insurers can charge for mandatory coverage, called the Grid premium. Insurers are required to charge the lower of their premium and the Grid premium. There is no cap on optional coverages.
Grid Base Premium – Basic Coverage
REPEALED: The AIRB must annually review the base premiums for the Grid Rate for basic coverage and post the adjusted base premium table before October 1 for implementation on January 1 of the following calendar year.