Alberta Auto Reform

Automobile insurance in Alberta has undergone reform. Alberta's auto system is provided by private companies. The result of a car crash will result in a fault being determined. There can be one person at fault or shared fault.

The office of the Alberta Superintendent of Financial Institutions (ASFI) of Alberta Finance and Enterprise regulates, in part, the insurance business in Alberta under the Insurance Act. Any person can contact the Superintendent on an insurance matter.

Auto reform was put in place to ensure that auto insurance was available for all at a cost that most people can afford. the new GRID system sets a price for a person with zero years licensed. This program is for the Public Liability and Property Damage (PLPD) with Accident Benefits only. The person can receive up to a 50% discount if has had a license for 10 years or more.

This new program has drastically reduced the rates for young male drivers. A female under the age of 25 years-old will still get a better rate from an insurance company's standard rates.

Another new rule is the "take all comers rule". Unless a driver has to go to high risk then the insurer cannot turn his business away. This is a distinct change of pre-Auto Reform when an insurance company could choose not to insure someone for having two accidents in a five year period, even if they were not at fault.

Talk to your agent or broker about how the new Alberta Auto Reform may benefit you. You can demand that the lowest rates be given to you, it is not a matter of the insurer's choice any more. For example, you may want a certain insurance company but perhaps had a cancellation for non-payment under a prior policy. This insurer cannot refuse to insure you in Alberta. They can demand full payment but they cannot turn you away.