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Your premium and the Good Driver Rate Cap

To help manage insurance premium costs, Alberta has a Good Driver Rate Cap, which limits the amount your insurance premiums can go up each year, if you’re an eligible driver.

For 2025 it is 7.5% (5% Good Driver Rate Cap plus 2.5% due to natural disasters).

If you qualify as a Good Driver and your insurance policy is renewing between May 28, 2025 and May 27, 2026, your insurance premium increase will be capped at 7.5%.

If you qualify as a Good Driver and your insurance policy is renewing before May 28, 2025, your insurance premium increase will be capped at 3.7%.

You do not qualify as a Good Driver if you have:

  • Any at-fault accidents in the last six years
  • Any Criminal Code traffic convictions in the last four years
  • Any major traffic convictions in the last three years
  • More than one minor traffic conviction in the last three years

There are exceptions to Good Driver Rate Cap when:

  • You move from a lower-risk rating territory to a higher-risk rating territory
  • You add a new driver to your policy who has a worse driving record or higher overall risk rating
  • You acquire a new vehicle, or modify your existing vehicle
  • You change insurance companies
  • You are capped by the grid rating system

Understanding your premiums

Insurers consider several factors when calculating the cost of your premium. Some will have an impact on everyone, while other factors are based on your individual situation.

If you're shopping for car insurance, it’s easy to get a car insurance quote, customize your coverage, and buy online.

If you're an existing customer and have questions about your policy, please visit My Insurance or Contact Us.

The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence.