Auto Insurance Grid

Grid rating program
- To set max premium insurers can charge for basic coverage (TPL and AB) for any driving record
- Developed to promote coverage availability and affordability
Potential effect of eliminating grid system
- More competitive rates for insured
- Less subsidization between risks
- Availability issues
- Affordability issues
- More pressure on FARM
Grid Premium for Basic Coverage
- Less experienced drivers capped by Grid
- As drivers gain experience without claims and convictions, premiums decrease
- Inexperienced drivers (< 8 years experience) with driver training start at 10% below entry level (Grid step -2)
- Each year without AF claim, further -5% to max 50% reduction to base / grid step 0
- Each AF claim moves driver 5 steps up Grid
- Convictions and accidents result in surcharges

Author

youngt

339355

Card Set

Auto Insurance Grid

Description

Auto Insurance Grid Rate Calculator

Updated

2018-04-24T00:26:31Z

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