The primary role of the Automobile Insurance Rate Board is to regulate premium level for basic coverage (third party liability and accident benefits), monitor additional coverage (collision and comprehensive) and approve the rate plans of new insurers that want to sell auto insurance in Alberta.
Each year, the AIRB reviews and sets the allowable percentage change for premium level for basic coverage under individual insurers' rating programs. That percentage change also applies to the grid rating program. (Drivers are welcome to use our grid rate calculator. The grid rating program caps premiums for basic coverage; approximately 90% drivers pay less than the grid premium.)
The Board also reviews notices by insurers for offset adjustments, which permit insurers to adjust one or more rating variables under their rating program for basic coverage by up to +10%, provided the overall effect on their book of business is revenue neutral. This allows insurers the flexibility to adjust their premiums to suit their business and allows for competition in the marketplace while keeping premiums stable.
Automobile Insurance Rate Board