Alberta’s good drivers benefit from end of Grid system

The Alberta government has announced the province’s auto insurance Grid system will be removed as of January 1, 2027. This is good news for the majority of Alberta drivers. Here’s why:

The background:

  • The Grid was established in 2004 with a goal of providing new and inexperienced drivers access to affordable insurance premiums. It allocated a portion of premiums from experienced drivers to subsidize those with less experience.

The reality:

  • While this was noble goal, it hasn’t worked.
  • The Grid has grown dramatically in recent years, and now charges good drivers much more than is justified to subsidize insurance for dangerous drivers with a history of at-fault accidents and infractions.
  • Here are some findings from a 2022 study of the Grid by Deloitte LLP:

Grid Impacts

There is no public-policy rationale in providing subsidized premiums to high-risk drivers with a history of at-fault claims and/or infractions in Alberta. Under the current system, the Grid charges good drivers more and works against the very thing we should seek to encourage most – safe driving.