What to know about Alberta’s “Good Driver” car insurance rate cap

Recently, the government of Alberta announced a “Good Driver” cap on auto insurance rates. The cap came into effect on April 10, 2024. Also referred to as “Good Driver Protection,” it’s designed to provide relief to drivers who qualify, making sure their rates don’t increase by more than the 3.7% cap for 2024.

So, how could an Albertan qualify for the rate cap? And why could you see a premium increase despite the rate cap? We’ve got the answers for you right here.

What’s the definition of a “Good Driver” in Alberta?

A “Good Driver” is a driver who does not have:

  • Any at-fault claims in the past six years
  • A Criminal Code traffic conviction in the past four years
  • A major traffic conviction in the past three years
  • More than one minor traffic conviction in the past three years

If you fit these criteria, you could qualify for the “Good Driver” rate cap.

My premium increased at renewal – why?

While some customers in Alberta will be protected by this “Good Driver” cap, others might see a premium increase of more than 3.7% at renewal.

This could be because you’ve had one of the above-mentioned incidents added to your driving history.

Other factors that could lead to a premium increase are related to changes to your risk profile, such as:

  • Moving to a higher-risk area
  • A vehicle that has been added or substituted during the policy term
  • The insured vehicle has been significantly modified
  • A new driver with a higher overall risk rating has been added to the policy
  • The loss of a discount such as multi-policy or multi-vehicle discounts
  • Your liability premium could be based on the government’s Grid calculator (this sets the maximum rate that insurance companies can charge for basic coverages and is based on individual driving experience)

You can find more info about Alberta’s Good Driver rate cap here. Have questions or concerns? Please contact us. We’re happy to help.