Overview
Alberta’s government continues to explore all possible avenues to provide relief for Albertans from rising auto insurance rates.
New reforms expected to come into effect on January 1, 2024 will help make auto insurance fair and sustainable for Albertans.
Rate increase cap
In 2024, Albertans with good driving records will only see their rates increase to account for Alberta’s inflation, using the September 2023 inflation rate.
In September, Alberta’s inflation rate decreased to 3.7% which was below the national average. On a monthly basis, Alberta also saw one of the largest inflation decreases among provinces.
A driver with a good record is everyone except those who have:
- any at-fault accidents in the last 6 years;
- any criminal code traffic convictions in the last 4 years;
- any major traffic convictions in the last 3 years; or
- more than one minor traffic conviction in the last 3 years.
Automobile Insurance Rate Board
Reduced driving patterns during the pandemic caused insurers to unexpectedly experience high profits, exceeding the benchmark set by the Automobile Insurance Rate Board (AIRB). Proposed amendments to regulations would grant the AIRB more authority to regulate Alberta’s auto insurance industry and keep rates fair.
If amended, AIRB would have the authority to direct insurers to return premiums to drivers during exceptionally profitable years. AIRB would also be able to request a rate filing from an insurer at any time, allowing the AIRB to review and possibly lower rates if necessary.
AIRB will also carefully monitor rate increases in 2024 to ensure that they are reasonable and justifiable.
Premium payment plans
In January 2023, the Superintendent of Insurance required insurers to provide premium payment plan options to most Albertans.
This measure is to be permanently adopted into regulation so Albertans would not have to fully pay their insurance premiums upfront for the entire year.
This will give Albertans the opportunity to budget for and manage their insurance costs over time.
Get the best rate
There are steps you can take to make sure you get the best auto insurance rates.
Shop around
Take advantage of Alberta’s competitive auto insurance market by shopping around. Discover potential savings as different insurers may offer varying rates and coverage options. Comparing multiple rates can help you find a better deal that suits your needs and budget.
Learn more about shopping the insurance market
Explore your options
With over 60 private insurance companies offering coverage in Alberta, make informed purchasing decisions by exploring the various types of auto insurance and things to consider before choosing a coverage.
Learn more about purchasing insurance
Understand your rates
Take an active role in understanding how your auto insurance rate is calculated. By understanding how your rate is calculated, you can make choices that help in lowering your rate.
Learn more about your insurance rates
Usage Based Insurance (UBI)
Consider exploring Usage Based Insurance, also known as 'pay-how-you-drive' or 'pay-as-you-drive'. Through this type of insurance, you may be eligible for discounted rates or rewards based on your driving habits.
Alberta’s Automobile Insurance Rate Board has more information on getting the best auto insurance rates: 10 ways to reduce your rates
Previous reforms
Next steps
In addition to the reforms implemented so far, the government has commissioned an external consultant to conduct an in-depth analysis to inform long-term reforms.
A draft report is expected by the end of 2023 and a final report by the first quarter of 2024. The results of the analysis will help inform the government’s decision in implementing sustainable, long-term solutions to address auto insurance affordability in Alberta.
We are considering all recommendations from Albertans and insurance experts. The insurance models of other jurisdictions – both within Canada and abroad are also being analyzed.
We are committed to making the necessary changes to ensure automobile insurance is fair, affordable and accessible for Albertans, and Alberta’s auto insurance system is sustainable.
News
- Good drivers to benefit from auto insurance changes (November 1, 2023)
- Taking action on insurance (January 26, 2023)
- Relief for Alberta drivers (October 29, 2020)
- Auto insurance reform seeks public input (February 18, 2020)
- Advisory committee to address automobile insurance (December 18, 2019)