The grid rating program was developed to establish the maximum rate that 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.
This policy states how 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.
Advise all automobile insurers of the communication requirements related to premium changes due to the implementation of Care-first and repeal of the Grid rating system.