The grid is a tool that has been developed to help set a maximum for the premiums that can be charged for mandatory coverage (Third-Party Liability and Accident Benefits). These capped amounts are based on each person's driving record.
How will your initial location on the grid be determined?
On October 1, 2004, every insured driver will be assigned a grid level. Each grid level is assigned a percentage that will be used in the premium calculation formula. It could be either a discount or surcharge, depending on your driving and claims history.
At this time, each driver will be initially placed at the entry-level premium position - Level Zero (unless the driver is new with an approved driver-training certificate within the last 2 years - these drivers start on Level -2).
The Premium Grid
(Accurate at October 1, 2004, but subject to change)
| Grid level | Grid level percentage |
| 16 | 23% cumulative increase for this level and each additional level higher (eg. 338% plus 23% equals 361%) |
| 15 | 338% |
| 14 | 315% |
| 13 | 293% |
| 12 | 270% |
| 11 | 248% |
| 10 | 225% |
| 9 | 210% |
| 8 | 195% |
| 7 | 180% |
| 6 | 165% |
| 5 | 150% |
| 4 | 140% |
| 3 | 130% |
| 2 | 120% |
| 1 | 110% |
| Zero | 100% |
| -1 | 95% |
| -2 | 90% |
| -3 | 85% |
| -4 | 80% |
| -5 | 75% |
| -6 | 70% |
| -7 | 65% |
| -8 | 60% |
| -9 | 55% |
| -10 | 50% |
| -11 | 50% |
| -12 | 50% |
| -13 | 50% |
| -14 | 50% |
| -15 | 50% |
(adapted from the Alberta Auto Insurance and the IBC Web sites)
Based on your years of driving experience and claims history with at-fault accidents, you will move up or down the grid. The lower the better.
Your movement up and down the grid is determined by many factors. Some of the most common are:
- For each full year of driving experience, you will move one level down the grid (to a maximum of 15 years' driving experience to Level -15).
- For each at-fault claim you will move up five levels. Only count claims that have happened in 6 years since your last policy renewal and for which you did not reimburse the insurer.
- For the most recent at-fault claim, move down one level for each full year since it occurred (to a maximum of 5).
You can get an idea yourself of your grid level and compare it against the notification you received from your insurer. If it is different, then let them know and have them go over their calculations with you.
Looking for more information?
The reforms in Alberta are a big deal.
If you're looking for more information then check out:- the Kanetix article, "Alberta auto insurance reforms: How will you be affected?
- the Kanetix article, "Alberta auto insurance reforms: A guide to how your compulsory insurance premiums will be calculated using the grid"
- the Insurance Bureau of Canada at www.ibc.ca
- the Alberta Government's Auto Insurance site at www.autoinsurance.gov.ab.ca
* Although accurate at the time of original publication in October, 2004, these reforms are subject to change and Kanetix is not responsible for any damages caused as a result of the information included in this article. The information collected and compiled here is intended to simply act as a guide.
