Alberta’s government is taking steps to help drivers manage the cost of auto insurance. The good driver rate cap will stay in place through 2026, while work continues on a new care-first auto insurance system set to launch in 2027.
Drivers with a clean record will continue to see their rate increases capped at 7.5 per cent when they renew their policies in 2025 and 2026. This cap means good drivers can keep more of their money for essentials like groceries, rent, and family needs.
“Albertans deserve an auto insurance system that works for them. By keeping the rate cap in place this year, good drivers avoid higher costs and keep more money where it belongs – in their pockets,” said Nate Horner, President of Treasury Board and Minister of Finance.
To qualify for the rate cap in 2026, drivers must meet updated requirements. Along with having no at-fault accidents in the last six years and no serious traffic convictions, they will now also need to have no minor traffic convictions within the past three years.
The Automobile Insurance Rate Board is also restricted from approving increases higher than an average of 12.5 per cent across all policyholders, up from the previous 10 per cent. This ensures insurance companies keep overall costs under control.
Earlier this year, Alberta’s legislature passed the Automobile Insurance Act, which sets the framework for the care-first model. Starting in January 2027, the new system will aim to deliver more stable premiums and provide some of the strongest benefits in Canada for people injured in collisions. The government is working with insurers, brokers, and health-care providers to ensure a smooth transition.
These changes are designed to make auto insurance in Alberta more predictable and affordable, while also improving care for drivers and their families.
Quick facts:
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Good drivers will see rate increases capped at 7.5 per cent: five per cent generally, plus 2.5 per cent to cover rising claims costs following natural disasters such as the 2025 Calgary and Brooks hailstorms.
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To qualify for the rate cap, drivers must have:
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No at-fault accidents in the past six years.
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No Criminal Code traffic convictions in the past four years.
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No major traffic convictions in the past three years.
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No minor traffic convictions in the past three years.
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The new care-first insurance system comes into effect in January 2027.