For Drivers

Frequently Asked Questions

Find answers to common questions, industry term definitions, and more.

I am looking at purchasing a car. How much is the insurance and how do I purchase it?

Your rate is determined using a combination of factors, including your personal characteristics, type of vehicle, coverage amount, deductible, and insurance company.

There are three ways to purchase auto insurance in Alberta. The option you choose is a matter of personal preference.

  • Agent: An insurance agent sells the products offered by one company.
  • Broker: An insurance broker has contracts to sell insurance for more than one insurance company.
  • Direct Writer: A direct writer insurance company has its own sales employees to sell policies through an office, call centre, or website.

Many insurance companies and independent insurance quoting sites have tools to provide drivers with quotes.

The AIRB encourages you to shop the market and use our rate comparison tool.

Does the AIRB offer premium quotes for insurance or insurance company recommendations?

The AIRB does not provide quotes or recommendations for auto insurance.

There are many things to consider when choosing auto insurance.

We encourage Albertans to shop the insurance market to find the right policy for them.

We also have tools to help you find an insurance company that meets your needs.

If you are interested in obtaining a quote, contact your agent, broker or direct writer, or refer to our list of auto insurance companies.

Who do I contact if I have concerns about my auto insurance rates?

Learn who to contact with questions or concerns about your insurance rates.

I've never had an accident or traffic violation. Why is my rate going up?

Many factors affect how your insurance rate is calculated, such as inflation, theft, fraud, and changes in driving behaviour.

What is the "All Comers Rule"?

This rule ensures all Alberta drivers can obtain mandatory auto insurance coverage (third-party liability and accident benefits). Insurance companies cannot refuse this coverage to any new applicant or existing policyholder. There are a few exceptions where coverage can be refused, including non-payment of all or part of your coverage.

What does "grid step" mean?

A grid step is a position on a scale that measures licensed experience and at-fault accident claims. Each step is associated with a percentage used in the grid rate calculation.

These steps are part of the Grid Rating Program, which sets maximum rates for basic auto insurance coverage (third-party liability, bodily injury, property damage, tort, and accident benefits) that insurance companies can charge.

The amount of collisions and driving experience determine a driver’s grid step.

I want to be a ride-share driver (Uber, Lyft, etc.). What kind of insurance do I need?

Ride-share drivers should be aware that the standard personal auto insurance policy excludes coverage for any vehicle used for carrying passengers for compensation or hire.

Learn more about the insurance needed to be a ride-share driver.

What is Direct Compensation for Property Damage (DCPD)?

The Government of Alberta introduced DCPD as part of the Automobile Insurance Reforms announced in October 2020. It was effective for all policies in Alberta on January 1, 2022.

The main intent of this change is to provide Alberta drivers with an efficient way to process vehicle damage claims.

If a driver is in an accident, they will work directly with their insurance company instead of the other party’s insurance company. This process allows for a more efficient and customer-focused claims process. DCPD is part of the mandatory coverage for Alberta drivers.

DCPD changes who pays, not what is paid for.