The province has recently tightened its definition of a “good driver,” which means that Alberta drivers with even a single minor traffic ticket may face higher insurance costs in 2026.
Many may remember the Alberta Government’s enactment of the “Good Driver Rate Cap” near the end of 2023. The reforms started on Jan. 1, 2024, and were designed to protect eligible drivers from large increases in their auto insurance premiums. Annual premium hikes were limited to 7.5% for “good” drivers, while those who didn’t qualify for the rate cap would likely see higher premium increases depending on their driving record and other risk factors.
At the time, the Alberta government said that the rate cap was intended to protect vehicle owners with good driving records from significant cost increases, help them avoid higher expenses, and keep more money in their pockets.
2026 changes made
Upon its establishment, the Alberta government determined the Good Driver Rate Cap would last until the end of 2026. In 2024, the cap stood at 3.7%, which was then raised to 7.5% for 2025 and 2026.
Previously, drivers with a minor traffic conviction within the past three years, such as a minor speeding ticket or other moving violation, could still qualify for the program. Under the 2026 changes, however, even a single minor conviction can now lead to disqualification. Generally speaking, “minor” convictions are those that earn three demerit points or less. Typical minor offences include:
- Speeding less than 15 km/hr over the limit
- Failing to signal when changing lanes
- Straddling two lanes
- Failing to yield right of way at an intersection
- Failing to fully stop at a stop sign
- Proceeding when unsafe at a railway crossing
- Passing violations
What are the qualifications for a “good driver’?
To qualify for the Good Driver Rate Cap in 2026, you must meet the following criteria, or it’s possible your premium increases could exceed 7.5%, which is not helpful for anyone.
You qualify, you must have had:
- No at-fault accidents in the last six years.
- No criminal code convictions, such as impaired driving, in the last four years.
- No major traffic convictions for offences such as distracted driving, speeding in a school/playground zone, or driving more than 50 km/h over the limit.
- No minor traffic convictions in the past three years.
As mentioned, the key changes are that previously, a driver could have up to one minor traffic conviction in the past three years and still qualify as a “good driver”. The new rules now require zero minor convictions. In addition, the Good Driver rate cap increased to 7.5% (made up of 5% for general inflation plus 2.5% for natural disaster costs) for 2025 and 2026.
Additional “Good Driver” exceptions apply, as well. If you move, change vehicles, add a new driver, or change your coverage, your rate increase may exceed 7.5% even if you meet all criteria.
No changes to photo radar
Photo radar tickets in Alberta still do not result in demerit points, only a fine. A reminder that in 2025, the Alberta government introduced significant changes to photo radar that attempted to shift photo radar away from revenue generation and toward what the province described as a stronger focus on traffic safety.
Under the new policy, photo radar is no longer permitted on provincial highways and major connectors. Instead, its use is largely restricted to higher-risk areas such as school zones, playground zones, and active construction sites. The government also limited intersection cameras to red-light enforcement only, eliminating “speed-on-green” ticketing.
However, significant problems in trouble spots have led to the re-introduction of photo radar in certain areas after several severe infractions were recorded and reported. Any additional photo radar locations must be justified by municipalities with collision data.
Save on your auto insurance premiums with Lane’s Insurance
Working with a trustworthy insurance broker such as those of us at Lane’s will help keep your costs to a minimum without affecting the quality of your coverage. We work with some of the best insurance providers in the country, and our long-standing relationships with them allow us to find you the very best prices for your coverage. We serve all of Alberta and offer affordable insurance bundles, excellent advice, outstanding claims support and the industry’s best customer service. Contact us at our Calgary, Edmonton, Banff, and Alberta offices.
