Alberta Reforms

​Government changes to the way claims are paid have reduced the cost of auto insurance for Albertans. ​

​In 2004, the Alberta government introduced changes to make car insurance more affordable, in particular for young drivers with clean records. Also, insurers started making a healthier return, which meant competition increased and people paid less for car insurance as companies competed for customers. This financial turnaround resulted in lower premiums.

Helping You Get Better Sooner

Most injuries related to car accidents are relatively minor. Prior approval from your insurance company is not required to begin treatment for minor injuries. ​

Reducing Amounts Awarded for Minor Claims

A $4,725 cap on court awards for pain and suffering also helps to reduce claims​ costs. The cap does not reduce the amount of money available to help victims get back on their feet. It applies only to pain and suffering awards for injuries deemed to be minor by an objective third party, not to income replacement or rehabilitation costs. 

In the past, minor injuries like strains and sprains could lead to personal injury lawsuits and pain and suffering awards of $20,000 to $50,000. 

Savings in the Driver’s Seat 

Your driving record sets the maximum premium you pay for the mandatory portion of your car insurance. Insurers must use the government’s premium grid and are not allowed to refuse anyone basic coverage. They can charge less than the price set by the grid, but not more. 

Unfortunately, capping the amount insurers can charge and grouping high-risk drivers together with everyone else, means bad drivers pay much less than they should while good drivers pay quite a bit more than they should. While savings in the system have slightly reduced everyone’s premiums, good drivers are not getting their fair share. The insurance industry is working with the Alberta government to adjust the grid so that good drivers are not unduly penalized. 

Has your vehicle identification number (VIN) been lost, stolen or destroyed? You can get a replacement VIN​.