Alberta drivers with clean records will see continued relief on their insurance bills as the provincial government extends the good driver rate cap through 2026.The cap limits annual increases for good drivers to 7.5%, made up of a 5% base cap and an additional 2.5% allowance to cover claims costs tied to natural disasters such as the 2025 Calgary and Brooks hailstorms. The move is meant to ease pressure on Albertans as the province prepares to roll out its new “care-first” auto insurance system in 2027.“Albertans deserve an auto insurance system that works for them,” said Finance Minister Nate Horner. “By keeping the rate cap in place this year, good drivers avoid higher costs and keep more money where it belongs – in their pockets.”.To qualify in 2026, drivers must meet tougher eligibility standards: no at-fault accidents within six years, no Criminal Code traffic convictions within four years, and no major or minor traffic convictions within three years.The Automobile Insurance Rate Board has also been directed to restrict overall industry-wide increases, with an average ceiling of 12.5%, up from the previous 10%. The government said this ensures companies keep policy costs in check while giving drivers predictability.The government claims the new care-first insurance model, passed earlier this year in the legislature, will to stabilize premiums and provide what the government calls “the best benefits in Canada” for those injured in collisions once it takes effect in January 2027.
