The new Alberta auto insurance scheme will see good drivers subsidizing bad, says Pembridge Insurance Co. president Bob Tisdale. While the plan will see rates drop by 5% for good drivers, bad drivers receive the greatest benefits, he contends, with rates dropping by more than 50%. This is because high-risk drivers, including those with accident records, traffic violations and even those who have had their license suspended in the past, will be in the same category as low-risk drivers on the government’s new premium grid. “We are extremely disappointed that under the reforms introduced in Alberta, individuals with bad driving records will save thousands of dollars while those with good driving records will only save as little as $60,” Tisdale says. “We don’t believe good drivers should be subsidizing bad drivers and we don’t believe that bad drivers should get a better rate reduction than good drivers.” Tisdale says the correct response to rising rates in the province include product customization, claims reform, road safety initiatives and appropriate risk assessment for the middle market. Otherwise, the system could result in price instability and ultimately less choice for drivers in the province.