What is the good driver protection?

To address affordability challenges, the Government of Alberta is implementing short-term reforms to assist Alberta drivers.

The short-term reforms include a cap on premium increases for “Good Drivers”.  These short term reforms were implemented through a Ministerial Order limiting the Automobile Insurance Rate Board from only approving changes to an insurer’s rating program where no policyholder meeting the definition of “Good Driver” sees an increase greater than the Alberta Consumer Price Index as reported each September.

What this means for Alberta Drivers is when your insurance company implements the changes to their rating program, adopting the Good Driver rate cap, if you meet the definition of Good Driver, your premium increase will be capped at 3.7% in 2024. Insurers will be implementing the rate cap before summer 2024 – until it is implemented, drivers may see an increase greater than the rate of inflation.

What is the definition of "good driver"?

The Ministerial Order defines a “Good Driver” as a driver who, irrespective of their number of years of driving experience, on the inception date of the renewal of their auto insurance policy, does not have:

1. any at-fault claims in the previous six years,
2. any criminal code convictions in the previous four years,
3. any major convictions in the previous three years, and
4. more than one minor conviction in the previous three years.

Are there exceptions to the good driver protection?

There are exceptions to the “Good Driver” rate protection:

• You move from a lower-risk rating territory to a higher-risk rating territory (as defined by your insurer)
• You add a new driver to your policy who has a worse driving record or higher overall risk rating
• You acquire a new vehicle, or modify your existing vehicle

What is a "minor" or "major" driving conviction?

Examples of “Major” driving convictions:

• Distracted driving
• Failing to remain at the scene of an accident
• Speeding in a school zone or playground zone
• Exceeding the speed limit by more than 50 kph
• Failing to stop for a school bus.

Examples of “Minor” driving convictions:

• Speeding, but less than 50 kph over the limit
• Following too close
• Failing to stop and/or failing to yield

To find a full list of what traffic offences are considered “major” or “minor,” refer to the Grid Guidance.