Starting January 1, 2026, auto insurance Grid base premiums in Alberta increased by 20% compared to January 2025. This adjustment was issued by the Alberta Automobile Insurance Rate Board on September 26, 2025. Alberta's Grid system for auto insurance can be complicated. To make things as clear as possible, we'll explain what Grid is, who is on the Grid, and how Grid has changed over time in the province.
The Grid sets the maximum amount an insurance company can charge for mandatory third-party liability auto insurance in Alberta. Grid pricing applies only to liability coverage and does not apply to collision or comprehensive insurance.
Most insurance companies offer liability insurance at rates lower than the Grid maximum, depending on a driver’s risk profile. Grid pricing represents a cap, not the standard rate most drivers pay.
A driver who has been licensed and insured for ten years with a clean driving and insurance history might pay $1,200 per year for $2 million in third-party liability coverage at company rates.
If that same driver were rated on the Grid, the maximum premium for identical coverage would be $2,863 per year, even with the same insurance company. The difference is not the insurer, but the pricing system.
Grid is the maximum amount you will pay for your liability insurance, not necessarily the amount you will pay.
Grid pricing is based on a step system. Each year a driver maintains an active licence without an at-fault accident, they move down one Grid level. The lowest Grid level is -15, and each lower step results in a slightly lower premium.
At-fault accidents move a driver up five Grid levels, up to a maximum of +15. Each upward step results in a surcharge.
Grid premiums can increase further if a driver has convictions such as speeding or distracted driving. In some cases, insurers may move a driver from company pricing to Grid pricing following a major conviction or insurance claim.
Using the earlier example, a distracted driving conviction could increase the premium to the Grid maximum of $2,863 for that driver. A 25% major conviction surcharge would then apply, bringing the total annual premium to $3,579.
This is in addition to the approximately $300 distracted driving ticket. Because major convictions typically remain on a driver’s record for 3 years, that single offence could result in nearly $2,400 in additional insurance premiums over that period.
When Grid base premiums increase, every driver insured under the Grid automatically sees a price increase. Drivers that are considered “Safe Drivers” have a rate increase maximum of 7.5% annually. Drivers that do not meet the standard for “Safe Driver” but are not grid rates will likely see an increase greater than 8% in 2026. Grid drivers are directly affected because the maximum allowable premium has risen.
Drivers most likely to be insured under the Grid include new drivers, drivers with poor driving records, people with limited insurance history, and drivers with recent at-fault accidents or major convictions.
Alberta auto insurance has gone through multiple changes through the years, many of these changes have impacted the Grid rating system. Since the Grid system was introduced in 2004, the Alberta Auto Insurance Rate Board AAIRB has adjusted the grid rating system nearly 30 times. All historical rate changes are available here.
In 2022, the Alberta government introduced Direct Compensation for Property Damage or DCPD on auto insurance claims. This changed how claims were handled after an accident and it had a significant impact on base Grid rates. The below chart will show the cost difference for the Grid base rate from 2021 to 2022.
| 2021 | 2022 | Change Amount | ||||
| Coverage Amount | Edmonton/Calgary | Rest of Alberta | Edmonton/Calgary | Rest of Alberta | Edmonton/Calgary | Rest of Alberta |
| $200,000 | $2,825 | $2,259 | $2,080 | $1,486 | -$745 | -$773 |
| $250,000 | $2,913 | $2,331 | $2,154 | $1,538 | -$759 | -$793 |
| $300,000 | $2,974 | $2,380 | $2,202 | $1,573 | -$772 | -$807 |
| $400,000 | $3,080 | $2,463 | $2,276 | $1,626 | -$804 | -$837 |
| $500,000 | $3,154 | $2,525 | $2,325 | $1,661 | -$829 | -$864 |
| $750,000 | $3,225 | $2,581 | $2,374 | $1,696 | -$851 | -$885 |
| $1 million | $3,321 | $2,658 | $2,447 | $1,748 | -$874 | -$910 |
| $2 million | $3,620 | $2,897 | $2,667 | $1,905 | -$953 | -$992 |
The cost for Grid rated auto insurance fell 26% for Edmonton and Calgary and 36% for the rest of Alberta from 2021-2022 with the changes to the system.
As inflation rises, the cost for claims did as well. This resulted in annual increases to the Grid base rate year over year. The below chart will show the cost difference for the Grid base rate from 2022 to 2026.
| 2022 | 2026 | Change Amount | ||||
| Coverage Amount | Edmonton/Calgary | Rest of Alberta | Edmonton/Calgary | Rest of Alberta | Edmonton/Calgary | Rest of Alberta |
| $200,000 | $2,080 | $1,486 | $3,383 | $2,417 | +$1,303 | +$931 |
| $250,000 | $2,154 | $1,538 | $3,503 | $2,502 | +$1,349 | +$964 |
| $300,000 | $2,202 | $1,573 | $3,582 | $2,558 | +$1,380 | +$985 |
| $400,000 | $2,276 | $1,626 | $3,701 | $2,644 | +$1,425 | +$1,018 |
| $500,000 | $2,325 | $1,661 | $3,781 | $2,701 | +$1,456 | +$1,040 |
| $750,000 | $2,374 | $1,696 | $3,860 | $2,758 | +$1,486 | +$1,062 |
| $1 million | $2,447 | $1,748 | $3,980 | $2,843 | +$1,533 | +$1,095 |
| $2 million | $2,667 | $1,905 | $4,338 | $3,098 | +$1,671 | +$1,193 |
The cost of Grid rated insurance has increased approximately 63% from 2022 to 2026.
While a 63% increase in Grid rated insurance may seem shocking, the data on the cost of liability insurance claims over the years may explain the issue.
| 2022 | 2024 | Amount Change | Percent Change | |
| Number of Bodily Injury Claims | 13,645 | 14,096 | +451 | 3.3% |
| Average Cost of Bodily Injury Claims | $127,469 | $178,609 | +$51,140 | 40.1% |
| Total Cost of Bodily Injury Claims | $1.7 Billion | $2.5 Billion | $800 Million | 47.1% |
The data for 2025 has not yet been released. Upon looking at the data for just 2024, the 47.1% increase in cost of bodily injury claims from 2022-2024 shows how Grid rated prmiums could easily increase 63% between 2022-2026.
As Alberta moves toward major auto insurance reforms on January 1, 2027, the province will transition to a “Care-First” insurance model. Under this new system, the current Grid rating structure will be eliminated altogether.
The Care-First model will continue to be delivered by private insurance companies, but it is designed to fundamentally change how injury claims are handled. The new framework significantly limits the ability to sue following an auto insurance accident, shifting the focus toward faster access to care and benefits rather than prolonged legal action.
By reducing the role of litigation, the Care-First system aims to dramatically lower legal and administrative costs associated with auto insurance claims. In theory, this allows a greater portion of insurance premiums to be directed toward medical treatment and recovery, rather than legal fees. Over time, these changes are intended to improve affordability and stability in Alberta’s auto insurance market for everyday drivers.
While the full impact of the Care-First model remains to be seen, one thing is clear: Alberta’s auto insurance system is on the cusp of its most significant structural change in decades, and the long-standing Grid system will soon be part of the province’s insurance history.