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The premium grid was developed and implemented by the Alberta Government in October
2004. It set the maximum premium insurance companies are permitted to charge for
basic coverage (Liability and Accident Benefits) for a private passenger vehicle.
Because the premium grid sets the maximum chargeable premium for basic coverage,
most drivers (approximately 80%) do not pay these premiums. Although the premium
grid provides a schedule of maximum premiums, insurance companies still operate
their existing rating programs they had in place before the premium grid was implemented.
Insurance companies are required by the Government to compare a driver's premium
under their current rating program to a driver's premium on the grid, and charge
you the lesser of the two premiums. In most cases, a driver's premium under their
insurer's rating program is less than on the premium grid.
The Entry level premiums at Grid Step 0 are as follows:
|
Liability Limit
|
Edmonton & Area
|
Calgary
|
Remainder of Province
|
|
$200,000 |
$1,567 |
$1,567 |
$1,254 |
|
$500,000 |
$1,751 |
$1,751 |
$1,401 |
|
$1,000,000 |
$1,844 |
$1,844 |
$1,475 |
|
$2,000,000 |
$2,009 |
$2,009 |
$1,607 |
Newly licenced drivers with driver training, start 2 levels down on the grid for
the first 2 years. With each claims free year, drivers move one level down the grid.
Drivers with 10 or more years of driving without claims will be at the bottom of
the grid which will cap their rates at 50% of the entry level premium.
For each at fault claim the driver has, he/she will move 5 levels up the grid.
The grid levels are based strictly on a drivers claims history. Once the grid level
is determined, conviction charges are applied according to the chart below:
|
# of Convictions in past 3 years
|
Surcharges
|
|
Traffic Safety Act convictions
|
Serious Traffic Safety Act convictions
|
Criminal Code convictions |
|
1
|
0% |
25%
|
300%
|
|
2
|
25% |
50%
|
450%
|
|
3
|
35% |
100%
|
+150%
|
|
4
|
50% |
200%
|
|
5
|
75% |
400%
|
|
6
|
100% |
800%
|
|
Each additional
|
Double immediately preceding percentage
|
Double immediately preceding percentage
|
|
|