Who Qualifies as a “Good Driver” under Alberta’s Auto Insurance Rate Cap?

Alberta’s auto insurance system has faced rising claims costs from increased lawsuits and healthcare expenses, catastrophic weather events driving up premiums, and market instability, leading insurers to tighten coverage and raise rates.

In an attempt to keep auto insurance rates lower for Albertans, the government introduced a rate cap in 2024. Effective January 2025, the “good driver” rate cap rose to 7.5%, replacing the previous 3.7% CPI-based cap.

This cap will limit rate increases for those who qualify as a “good driver.” But who qualifies?

Do You Qualify as a “Good Driver”?

Good Driver Criteria:

• No at-fault accidents in the past six years.
• No criminal traffic convictions in the past four years.
• No major traffic convictions in the past three years.
• No more than one minor traffic conviction in the past three years.

Your rate cap protection may change if you:

• Switch insurance companies.
• Move to a higher-risk area.
• Add a new driver with a poor record.
• Purchase or modify a vehicle.

To keep your car insurance more affordable, it is as important as ever to practice good driving habits and keep a clean driving record!

Did You Know?

Distracted driving is classified as a major conviction by insurance companies, affecting your record similarly to impaired driving. Protect your record by avoiding distractions on the road.

Find out more here: Understanding Alberta’s Auto Insurance Reform