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Alberta’s Grid Rating System to be Removed

Regulation
Effective on

Summary

1. The Grid is being repealed with no replacement. On November 21, 2024, the Alberta government announced the Grid Rating System would be repealed effective January 1, 2027, with no replacement. This is part of the transition to the new Care-First auto insurance system.

2. The system was criticized for subsidizing high-risk drivers. Originally introduced in 2004, the Grid capped premiums for high-risk drivers, but a Deloitte report found that safe drivers were paying roughly $180 million annually (about $65 per driver) to subsidize high-risk drivers’ premiums. On average, high-risk drivers with a history of at-fault claims and infractions received an annual subsidy of $2,516, while the worst drivers received as much as $9,859.

3. The Grid drifted from its original purpose. The system was originally designed to ensure affordable entry-level premiums for new drivers while promoting personal responsibility. However, 52% of drivers benefiting from the Grid cap had more than 7 years of driving experience and were not the new drivers the system was intended to support.

“Each and every day, the grid system penalizes safe drivers in Alberta by charging them higher premiums”

Aaron Sutherland, VP of Insurance Bureau of Canada as reported IBC.

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