Alberta drivers with clean records will continue to see their insurance rates capped as the provincial government extends its good-driver rate program through 2026.
Finance Minister Nate Horner said Tuesday the move will prevent higher costs for motorists while work continues on a new care-first auto insurance system expected to launch in 2027. He said keeping the cap in place means drivers can put more money toward their families, groceries and rent instead of higher premiums.
The cap limits rate increases for eligible drivers to 7.5 per cent when policies come up for renewal this year and next. The province has also tightened eligibility rules. To qualify, motorists must have no at-fault accidents in the past six years, no Criminal Code traffic convictions in the past four years, and no major or minor convictions in the past three years.
At the same time, the government is raising the ceiling on average premium hikes the Automobile Insurance Rate Board can approve for all policyholders. That limit increases to 12.5 per cent, up from 10 per cent, in a move aimed at balancing industry costs with consumer protection. Officials say the overall measures are meant to keep auto insurance predictable and affordable.
The care-first system, passed earlier this year in the legislature, is billed as a long-term solution to stabilize premiums and provide more comprehensive benefits for people injured in collisions. Alberta’s government says it will continue working with insurers, brokers and health-care providers ahead of the 2027 rollout.
Albertans are facing rising auto insurance premiums because of inflation, severe weather and legal claims, but it is unclear if the Government of Alberta’s planned 2027 shift to a “care-first” system will ease costs for drivers.
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