Good Driver Protection

To address affordability challenges, the Government of Alberta is implementing short-term reforms to assist Alberta drivers.

What is the good driver protection?

To address affordability challenges, the Government of Alberta implemented short-term reforms to assist Alberta drivers.

The short-term reforms include a cap on premium increases for “Good Drivers”.  These short term reforms were implemented through a Ministerial Order limiting the Automobile Insurance Rate Board from only approving changes to an insurer’s rating program where no policyholder meeting the definition of “Good Driver” sees an increase greater than what is set forth in the Ministerial Order.

  • For 2025 it is 7.5% (5% good driver rate cap plus 2.5% due to natural disasters) 
  • For 2026 it is 7.5% (5% good driver rate cap plus 2.5% due to natural disasters)

What this means for Alberta drivers is when your insurance company implements the changes to their rating program, adopting the Good Driver rate cap, if you meet the definition of Good Driver, your premium increase will be capped at 7.5% in 2025 and 7.5% 2026.

What is the definition of "good driver"?

The Ministerial Order defines a “Good Driver” as a driver who, irrespective of their number of years of driving experience, on the inception date of the renewal of their auto insurance policy, does not have:

  1. any at-fault claims in the previous six years,
  2. any criminal code convictions in the previous four years,
  3. any major convictions in the previous three years, and
  4. any minor conviction in the previous three years.

The definition of "good driver" changed under the Ministerial Order announced in October 2025. The AIRB will require insurers to file to change the definition with an implementation date for renewal business no sooner than 12 months after they adopted the previous Ministerial Order.

Are there exceptions to the good driver protection?

There are exceptions to the “Good Driver” rate protection:

  • You move from a lower-risk rating territory to a higher-risk rating territory (as defined by your insurer)
  • You add a new driver to your policy who has a worse driving record or higher overall risk rating
  • You acquire a new vehicle, or modify your existing vehicle
  • You change insurance company, or
  • You are capped by the grid rating system
What is a "minor" driving conviction?
  Description of Offence Traffic Safety Act

Use of Highway and Rules of the Road Regulation
1 Speeding ‑ unreasonable rate of speed   2(1)(a)
2 Speeding (general) ‑ exceeding limit by up to 15 kph 115(2)(p)  
3 Speeding (construction zone) ‑ exceeding limit by up to 15 kph 115(2)(p.1) and (p.2)  
4 Speeding (passing emergency vehicle) ‑ exceeding limit by up to 15 kph 115(2)(t)  
5 Speeding (flashing yellow light crossing) ‑ exceeding limit by up to 15 kph   53(5)(c)
6 Speeding (general) ‑ exceeding limit by over 15 but not more than 30 kph 115(2)(p)  
7 Speeding (construction zone) ‑ exceeding limit by over 15 but not more than 30 kph 115(2)(p.1) and (p.2)  
8 Speeding (passing emergency vehicle) ‑ exceeding limit by over 15 but not more than 30 kph 115(2)(t)  
9 Speeding (flashing yellow light crossing) ‑ exceeding limit by over 15 but not more than 30 kph   53(5)(c)
10 Speeding (general) ‑ exceeding limit by over 30 but not more than 50 kph 115(2)(p)  
11 Speeding (construction zone) ‑ exceeding limit by over 30 but not more than 50 kph 115(2)(p.1) and (p.2)  
12 Speeding (passing emergency vehicle) ‑ exceeding limit by over 30 but not more than 50 kph 115(2)(t)  
13 Speeding (flashing yellow light crossing) ‑ exceeding limit by over 30 but not more than 50 kph   53(5)(c)
14 Following too close   18
15 Failing to stop, etc. when meeting oncoming vehicle on narrow roadway   14
16 Passing on hill or curve or near railway crossing   19(1)
17 Passing on left when view obstructed or traffic present on left side of highway   20
18 Failing to pass on left in safe manner or failing to return to right side of roadway in safe manner   21(1)
19 Overtaking another vehicle by driving off the roadway, in a parking lane or when unsafe   23
20 Passing another vehicle stopped at crosswalk   41(2)
21 Driving left of centre line   12(1)
22 Driving wrong way on one‑way highway   17
23 Impeding passing vehicle   21(2)
24 Impeding passing vehicle ‑ multi‑lane highway   22(2)(b)
25

Failing to yield right of way to a vehicle

 (a) at an intersection, or turning left unsafely

 (b) at yield sign

 (c) in traffic circle

 (d) at merge sign

 (e) at green light or green arrow

 (f) at flashing yellow light

  

34

39

40

50, 51

52(1), (3)‑(5)

53(3)
26

Failing to yield right of way to a pedestrian

 (a) at an alley entrance or driveway

 (b) in a crosswalk

 (c) at a green light or green arrow

 (d) at flashing yellow light at intersection

 (e) at flashing yellow light not at intersection

 (f) at flashing yellow light with zone sign or symbol		  

36(3)

41(1)

52(1)‑(5)

53(3)

53(4)

53(5)(d)
27

Failing to stop

 (a) before entering highway

 (b) at a stop sign

 (c) for an emergency vehicle sounding siren

 (d) at railway crossing when a train is approaching

 (e) within prescribed distance from railway when stop sign

 (f) at yellow light at intersection

 (g) at yellow light not at intersection

 (h) at red light at intersection

 (i) at red light not at intersection

 (j) at flashing red light at intersection

 (k) at flashing red light not at intersection		  

36(2)

37

65(1)

42(2)

42(4)(a)

53(1)

53(2)

54(1)(a)

54(4)

54(5)(a)

54(6)(a)
28 Unauthorized following within 150 metres of emergency vehicle sounding siren or with flashing lights or both   65(2)
29 Driving around barrier at railway crossing   42(3)
30

Proceeding when unsafe

 (a) after stopping at intersection

 (b) after stopping for stop sign at railway crossing

 (c) after stopping for school bus

 (d) after stopping for red light at intersection

 (e) after stopping for flashing red light at intersection

 (f) after stopping for flashing red light not at intersection		  

38

42(4)(b)

72(2)

54(1)(b)

54(5)(b)

54(6)(b)
31 Stunting 115(2)(f)  
32

Traffic lane violation

 (a) slow moving vehicle in incorrect lane

 (b) driving at less than maximum speed in designated fast lane       outside an urban area

 (c) improperly crossing solid or broken lines or driving improperly on left  side of broken lines on 2‑way highway

 (d) making unsafe lane change

 (e) failing to drive in centre of marked lane

 (f) occupying 2 lanes

 (g) improperly driving in centre lane of 3‑lane highway

 (h) driving in lane marked with “X”		  

3

2(1)(b)

15(1)



15(4)

15(5)

15(6)

16(1)

27(4)
33 Failing to obey instruction of traffic control device   57
34 Slow driving impeding or blocking traffic   2(1)(c)
35 Driving at less than minimum speed 115(2)(q)  
36 Failing to obey direction of peace officer to increase speed, etc.   2(4)
37

Failing to signal

 (a) when changing lanes

 (b) when turning left or right

 (c) when stopping		  

15(2)

24

35
38 Failing to make proper signal when starting, turning or changing the course or direction of a vehicle or stopping a vehicle on a highway   9(b)
39

Improper turns

 (a) when turning right

 (b) when turning left

 (c) failing to obey traffic control device

 (d) making U‑turn unsafely or where prohibited

 (e) making U‑turn with a school bus where prohibited		  

25

26

27(1), (2)

29, 30

31
40 Backing up vehicle unsafely or where prohibited   32, 33
41 Fail to ascertain sufficient space for movement   9(a)
What is a "major" driving conviction?
  Description of Offence Traffic Safety Act Use of Highway and Rules of the Road Regulation
1 Failing to remain at scene of accident 69(1)  
2 Improper passing in school zone or playground zone   8
3 Speeding in school zone or playground zone

115(2)(r)1

 53(5)(c)
4 Speeding (general) ‑ exceeding limit by more than 50 kph 115(2)(p)  
5 Speeding (construction zone) ‑ exceeding limit by more than 50 kph 115(2)(p.1) and (p.2)  
6 Speeding (passing emergency vehicle) ‑ exceeding limit by more than 50 kph 115(2)(t)  
7 Speeding (flashing yellow light crossing) ‑ exceeding limit by more than 50 kph   53(5)(c)
8 Careless driving 115(2)(b)  
9 Racing 115(2)(c)  
10 Driving on a bet or wager 115(2)(d)  
11 Failing to stop for a school bus   72(1)
12 Driving while unauthorized 94(2)  
13 Failing to stop school bus, vehicle carrying explosives, etc. at uncontrolled railway crossing   42(5)
14 Failing to stop for a peace officer 166(2)  
15

Distracted Driving

(a) Reading or viewing printed material

(b) Writing, printing or sketching

(c) Personal Hygiene

(d) Other activity prescribed in the regulations

(e) Programming a GPS while driving

(f) Using a cellphone or electronic device

115.4(1)(a)

115.4(1)(b)

115.4(1)(c)

115.4(1)(d)

 115.3(1)

115.1(1)(a),(b)

  

1 Sections 107(2) and 108(1)(h) of the Traffic Safety Act (TSA) provide the authority to allow school and playground zones, the offences fall under TSA and Rules of the Road sections noted

Will rates increase for the next year until the new care-first system is operational?

Auto insurance rates will unfortunately have to go up to pay for the costs of the system we have right now.

Even with the modified rate cap, most insurance companies will still not charge a premium sufficient to cover their actual claims and operational costs. This is why a new system is necessary.

For drivers who do not qualify for the Good Driver Rate Cap, how much can their premiums increase?
Good drivers will be capped at 7.5%. All other drivers will be subject to rate increases that vary.

The AIRB is limited from approving a rate change greater than 12.5% for all their policyholders, up from a previous 10% in 2025.

Since drivers capped by the Good Driver Rate Cap will be limited to a 7.5% increase, insurers will collect the rest of the approved increase from the remaining drivers. This could result in disproportionately higher premium increases for drivers excluded from the Good Driver Rate Cap.

I purchased the Accident Forgiveness Endorsement (SEF 39) on my auto insurance policy and I have had an at-fault accident, does this endorsement mean I still qualify for the Good Driver Cap?

No, the definition of Good Driver does not include drivers with an Accident Forgiveness Endorsement (SEF 39). If the driver has had an at fault accident within the last 6 years, they do not meet the criteria for a Good Driver, as defined by the government, and their premium will not be capped.

The SEF 39 only protects the driver’s premium from increasing in the insurance company’s rating system. Therefore, if the driver had the accident forgiveness endorsement on their policy at the time of the accident, the insurance company cannot rate them for the at fault accident, which will reduce the premium your insurance company charges.

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