It’s always interesting to observe a clients reaction when the topic of ‘The Grid’ comes up. Though it sounds intimidating, most people’s fear of this rating system stems from a lack of understanding. Let me explain:

What is the Grid?

In 2004 the Alberta Government implemented legislation that a pricing cap be applied to private passenger vehicles, for their mandatory Third Party Liability and Accident Benefits insurance coverage.

How does this affect me?

When you are first licensed in Alberta, you are placed on the grid at the entry level position (typically zero), and for every full year of clean driving history you move down on the scale. With the lowest numbers (negative) representing the best driving record, this scale, ranges from ‘best’ (-15) to worst (+15).

With regards to how this score is affected, Accidents and lapses in your drivers licence will generally affect your grid rate adversely. With lapses in your drivers licence, depending on how long the gap was, your grid placement can move towards the positive side of the scale - and remember, that this is not a good thing. With at fault accidents involving a third party, your grid placement can move as much as 5 points to the positive side of the scale.

How can I improve my Grid rate?

With every year of clean driving, your grid rate will improve, resulting in lower insurance premiums. New drivers are generally placed in the middle of the scale at "0", but can get a head start on the grid game with a driver education course. This will provide them with 2 years of driving history placing them at a -2 on the grid, and will be held there for the next 2 years, provided no liability accidents occur within that time. This rating entitles them to the lower liability premiums of a more experienced driver.

Once you have a better understanding of the Grid and what affects it, you’ll have a head start when it comes to preparation, and searching for that perfect insurance deal.

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