Grid rating system will end under Care-First

Alberta’s Auto Insurance Rate Board (AIRB) recently confirmed the permanent removal of the province’s Grid Rating System as part of the transition to the new Care-First auto insurance system.

The Grid system, in place since 2004, caps the premiums of high-risk drivers.
In 2022, IBC released a report from Deloitte that found:

Safe drivers in Alberta paid $180 million annually in auto insurance premiums – or $65 per driver – to subsidize the premiums of high-risk drivers.
52% of drivers subsidized by the Grid had more than 7 years of driving experience and were not the new drivers that the system was intended to support.
On average, high-risk drivers in Alberta with a history of at-fault claims and infractions received an annual subsidy of $2,516.
On average, Alberta’s worst drivers with an extensive history of claims and infractions received an annual subsidy of $9,859.
Alberta’s Grid resulted in safe, responsible drivers paying more than they should for mandatory auto insurance coverages in order to subsidize those with a history of high-risk driving behaviour.

The removal of the Grid will help improve the affordability of auto insurance for safe drivers, while better incentivizing more responsible driving behaviour on Alberta roadways.