Alberta’s Grid Rating System to be Removed

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Summary

Introduced in 2004 by the Alberta Automobile Insurance Rate Board (AIRB), the Grid was designed to protect consumers by establishing the maximum premiums insurers could charge for mandatory auto coverages.
As Alberta transitions toward a new auto insurance model, the Grid is scheduled for full repeal on January 1, 2027.
The repeal of Grid will enable more accurate risk-based pricing, increasing competition but likely raising premiums for higher-risk drivers.

Grid Removal	Alberta’s Grid Rating System (in place since 2004) will be permanently removed under the Care-First reforms. Previously, over 90% of drivers did not pay grid rates; less than 10% of drivers (mostly inexperienced) were grid rated.
Subsidization Impact	Historical data indicates safe drivers subsidized riskier drivers by about $180 million annually (~$65 per driver), with high-risk driver subsidies averaging $2,516 and worst drivers ~$9,859 per year.
Pricing Flexibility	Removal increases insurer discretion to set risk-based premiums across all drivers without the grid cap constraint.
Competitive Dispersion	Potential for greater rate dispersion by risk class; quantification dependent on portfolio and underwriting segmentation.
Regulatory Risk	Implementation ties to the broader auto reform timeline; anticipated final phases by 2027.