Alberta's auto insurance regulator, AIRB, is requiring insurers to remove restrictions on collision and comprehensive coverage as a condition for approving future rate increases. The move addresses growing coverage denials, with collision coverage among high-risk drivers dropping from 71% in late 2024 to 68% in 2025.
- New Authority: AIRB gained expanded power over underwriting rules in October 2025, allowing it to regulate how insurers accept or reject coverage.
- Coverage Decline: Collision coverage among drivers with at-fault claims or serious convictions fell from approximately 71% in late 2024 to 68% in 2025.
- Insurer Restrictions: Some insurers began restricting optional physical-damage coverage in early 2024, including refusing coverage or requiring deductibles of $2,000 or more.
- Rising Denials: Consumer research found 6% of respondents in 2025 reported being denied auto insurance coverage in the previous two years, up from 4% in 2024.
- Premium Increases: Average Alberta auto insurance premiums rose 8.7% in 2025, contributing to affordability concerns.
Alberta auto insurers must ease restrictions on collision and comprehensive coverage before receiving approval for further rate increases, according to new information from the Automobile Insurance Rate Board.
The requirement was detailed in AIRB’s 2026 Market and Trends Report, released August 27. Discussions between AIRB staff and most Alberta insurers are underway.
Some insurers began restricting optional physical-damage coverage in early 2024 for drivers with an at-fault claim in the previous six years or a serious driving conviction in the previous four.
The restrictions have included refusing collision or comprehensive coverage and requiring deductibles of $2,000 or more.
Alberta drivers are required to carry basic auto insurance, but collision and comprehensive coverage are optional. Collision coverage pays for damage to a driver’s own vehicle following an at-fault crash.
AIRB initially lacked authority over the underwriting rules used by insurers to determine whether optional coverage would be offered. The Alberta government expanded that authority in October 2025 to include underwriting rules covering the acceptance or rejection of risks, coverages and endorsements. AIRB subsequently made removal of restrictions on collision, comprehensive and other Section C coverages a condition for approval of further rate increases.
Provincial data put collision coverage among drivers with an at-fault collision or serious conviction at about 68% in 2025, down from approximately 71% in late 2024.
Separate consumer research commissioned by AIRB found 6% of respondents in 2025 reported that they or someone in their household had been denied auto insurance coverage during the previous two years. The figure was 4% in 2024.
Average Alberta auto insurance premiums increased 8.7% in 2025.
Following publication of the report, Insurance Bureau of Canada vice-president Aaron Sutherland said Alberta drivers continue to face problems with the availability and cost of coverage.
“The availability and affordability of coverage continues to decline,” Sutherland said.
Alberta’s Care-First auto insurance system is scheduled to take effect January 1, 2027.
