The Automobile Insurance Rate Board (AIRB) recently completed its Annual Review which helps to determine auto insurance base rates for the upcoming year. The group looks at industry losses and determines trends may affect pricing moving forward.

What Is The Grid Rating System?

To fully understand the results of the AIRB’s Annual Review, you first need to understand the Grid Rating System. The Grid Rating System was created by the AIRB as a way to set rates for basic auto insurance coverage. Each driver is placed on the grid, and your placement on the grid is determined by your driving history. Depending on your grid rating, you’ll see differences in insurance premiums. The AIRB sets a maximum premium for each grid rating, which ensures that drivers can’t be overcharged.

While many drivers don’t end up paying the maximum amount, it all depends on their driving history.

2017 Automobile Insurance Rate Board Annual Report - The Impacts

On September 29, 2017 the AIRB published a bulletin that stated: “after considering all of the oral and written information presented through the open meeting process… the Board is increasing the current Grid rate level by 10% effective January 1, 2018”.

What This Means For You

This Grid rate level increase means that drivers could potentially see their insurance rates increase by up to 10% upon renewal, because every grid ratings maximum premium is being raised by 10%.

You can read the full AIRB bulletin here.