Quote data from MyChoice.ca, November 2025
How Does Car Insurance Work in Alberta?
Car insurance is mandatory in Alberta, and it’s important to understand how your premium is calculated and what types of coverage make up a standard policy.
Below is a breakdown of what’s typically included when you get a car insurance quote in Alberta through MyChoice, divided into mandatory and highly recommended coverages. Together, these form the full picture of what drivers in Alberta pay on average for insurance.
| Coverage Type | What’s Included | Average Annual Car Insurance Premium |
|---|---|---|
| Mandatory | – Third-Party Liability (minimum $204,523) – Accident Benefits – Direct Compensation: Property Damage (DCPD) | $867 |
| Highly Recommended | – Collision – Comprehensive – Uninsured Automobile – SEF 20 (Loss of Use) – SEF 27 (Legal Liability for Non-Owned Vehicles) – SEF 44 (Family Protection) – SEF 39 (Accident Forgiveness) – SEF 43R (Limited Waiver of Depreciation) | $945 |
| Coverage Total: | $1,812 |
Quote data from MyChoice.ca, November 2025
Mandatory Coverages:
These coverages are required by Alberta law and will always appear in your quote.
| Coverage Type | Coverage Details | Average Annual Car Insurance Premium |
|---|---|---|
| Third-Party Liability | Protects you if you injure someone or damage their property while driving. Also covers legal expenses if you’re sued. | $486 |
| Accident Benefits | Covers medical costs, rehabilitation, and income replacement for you and your passengers, regardless of who caused the accident. | $133 |
| – Direct Compensation: Property Damage (DCPD) | Covers damage to your vehicle and its contents when you’re not at fault in a collision with another insured Alberta driver. | $249 |
| Coverage Total: | $867 |
Quote data from MyChoice.ca, November 2025
Highly Recommended Coverages:
These coverages are optional, but most Alberta drivers add them for better financial protection.
| Coverage Type | Coverage Details | Average Annual Car Insurance Premium |
|---|---|---|
| Collision | Pays for repairs if your vehicle collides with another car, object, or rolls over — even when you’re at fault. | $363 |
| Comprehensive | Covers non-collision damage such as theft, fire, hail, windstorms, vandalism, or fallen objects. | $478 |
| Uninsured Automobile | Protects you if you’re hit by an uninsured or hit-and-run driver. Covers injuries, death benefits, and damage when the at-fault driver has no valid insurance. | $14 |
| SEF 20: Loss of Use | Covers transportation costs (rental car, rideshare, transit) while your vehicle is being repaired after a covered loss. | $23 |
| SEF 27: Legal Liability for Non-Owned Automobile | Extends your coverage to rental or borrowed vehicles, protecting you if they’re damaged while under your care. | $28 |
| SEF 44: Family Protection | Protects you and your family if you’re hit by an underinsured, uninsured, or hit-and-run driver — up to your own liability limits. | $16 |
| SEF 39: Accident Forgiveness | Prevents your rates from increasing after your first at fault accident (as long as you stay with the same insurer). | $23 |
| SEF 43R: Limited Waiver of Depreciation | Ensures you get the original purchase price of your new vehicle if it’s written off within the policy-specified period. | $2 |
| Coverage Total: | $945 |
Quote data from MyChoice.ca, November 2025
Most Expensive Cities to Insure a Car in Alberta
Car insurance premiums in Alberta vary significantly by city. Based on our latest MyChoice quote data, the most expensive cities tend to have higher traffic density, more collisions, and a higher frequency of claims.
Below are the most expensive cities to insure a car in Alberta:
| City | Average Annual Car Insurance Premium |
|---|---|
| Canmore, AB | $2,296 |
| Red Deer, AB | $2,335 |
| Edmonton, AB | $2,400 |
| Airdrie, AB | $2,598 |
| Calgary, AB | $2,640 |
| St. Albert, AB | $2,260 |
| Lethbridge, AB | $2,205 |
Quote data from MyChoice.ca, November 2025
Least Expensive Cities to Insure a Car in Alberta
The following cities benefit from lower population density, fewer major collisions, and lower claim volumes, all of which contribute to cheaper premiums for drivers.
Here’s a detailed look at the least expensive cities for car insurance in Alberta:
| City | Average Annual Car Insurance Premium |
|---|---|
| Lloydminster, AB | $1,711 |
| Leduc, AB | $1,725 |
| Stony Plain, AB | $1,740 |
| Spruce Grove, AB | $1,796 |
| Medicine Hat, AB | $1,830 |
| Grande Prairie, AB | $2,074 |
| Banff, AB | $2,099 |
Quote data from MyChoice.ca, November 2025
Car Insurance Cost in Alberta by Age
Alberta car insurance premiums rise and fall depending on your age. Teens usually pay higher premiums, but these lower as they age. When you hit 65, premiums rise again because your accident risk increases.
Here’s a closer look at car insurance costs in Alberta, organized by age:
| Age Group | Average Annual Car Insurance Premium | Annual Savings with MyChoice |
|---|---|---|
| 18–20 | $5,015 | $997 |
| 21–24 | $2,569 | $511 |
| 25–34 | $2,056 | $409 |
| 35–44 | $1,772 | $352 |
| 45–54 | $1,435 | $285 |
| 55–64 | $1,382 | $275 |
| 65+ | $1,471 | $293 |
Car Insurance Cost in Alberta by Driving History
When calculating your Alberta car insurance premiums, insurers check your driving history to predict how you’ll drive in the future. Past violations could lead them to think you won’t be a safe driver.
Driving violations stay on your record for several years, so you might end up “paying” for those mistakes long after the fact. In Alberta, the premium differences between someone with a clean driving record and a bad driving record can reach up to $1,534 annually.
Here’s an example of how a bad driving record influences your Alberta auto insurance premiums:
| Driving Violation | Average Annual Car Insurance Premium |
|---|---|
| Clean driving record | $1,812 |
| Insurance cancellation (CNP) | $2,591 |
| DUI / Licence suspension | $2,157 |
| One at-fault accident | $3,334 |
| Speeding ticket | $2,265 |
Quote data from MyChoice.ca, November 2025
Car Insurance Cost in Alberta by Vehicle Model
Insurance costs in Alberta vary widely depending on the vehicle you drive. Models with higher repair costs, luxury features, or powerful engines tend to see higher premiums, while practical and affordable vehicles usually have lower rates.
| Car Model | Average Annual Car Insurance Premium |
|---|---|
| Honda | $1,663 |
| Toyota | $1,908 |
| Ford | $1,659 |
| Chevrolet | $1,704 |
| Mazda | $1,689 |
| Hyundai | $1,827 |
| Volkswagen | $1,667 |
| Subaru | $1,573 |
| BMW | $2,110 |
| Audi | $2,253 |
Quote data from MyChoice.ca, November 2025
Who Provides Car Insurance Quotes in Alberta?
Insurance agents, brokers, aggregators, and direct writers provide car insurance quotes in Alberta. What are the differences, and what does each offer? Here’s a closer look at the four insurance provider types:
How Can You Get Cheap Car Insurance in Alberta?
You can get lower premiums and cheap car insurance in Alberta by finding the best policy deals and lowering your risk profile. Here are several ways to get cheap Alberta auto insurance:
How Your Car Insurance Quotes are Calculated in Alberta
Your Alberta car insurance rates are calculated based on how risky the insurer thinks you are. Generally, you’ll pay higher premiums if the insurer believes you’re more likely to get into an accident.
Here are the key criteria for determining your Alberta car insurance quotes:
Car Insurance for Specific Demographics in Alberta
For the most part, the most expensive car insurance rates anywhere occur in densely populated areas and this coincides with the Edmonton to Calgary corridor being one of the most urbanized areas in Canada, not just Alberta.
Here are additional tips for getting car insurance for specific demographics:
Other Factors That Affect Car Insurance Prices in Alberta
Many factors influence your Alberta car insurance rates. In addition to the ones we covered previously, here are other criteria that may increase or decrease your premiums:
Main Mode of Commuting in Alberta
The vast majority of commuters in Alberta travel by personal vehicle, making it the most popular commuting method in the province. At 87.3%, personal vehicle commuters are far more numerous compared to public transit users and other kinds of commuters in Alberta. Here’s a detailed look at how Albertans commute:
| Main mode of commuting | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 1,578,980 | 100.0 |
| Car, truck or van | 1,378,685 | 87.3% |
| Car, truck or van – as a driver | 1,287,940 | 81.6% |
| Car, truck or van – as a passenger | 90,740 | 5.7% |
| Public transit | 88,255 | 5.6% |
| Walked | 62,810 | 4.0% |
| Bicycle | 11,370 | 0.7% |
| Other method | 37,865 | 2.4% |
Commuting Duration in Alberta
Nearly 70% of Alberta’s commuters spend less than half an hour getting to work. The remaining 30% spend over half an hour on their commute. While somewhat rare, there are over 90,000 commuters who take over an hour getting to work in Alberta. Here’s a closer look at the commuting duration in Alberta:
| Commuting duration | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 1,678,980 | 100.0 |
| Less than 15 minutes | 487,710 | 30.9% |
| 15 to 29 minutes | 610,485 | 38.7% |
| 30 to 44 minutes | 302,735 | 19.2% |
| 45 to 59 minutes | 87,230 | 5.5% |
| 60 minutes and over | 90,815 | 5.8% |
Most Common Questions About Car Insurance in Alberta
Can I drive a car insured by someone else in Alberta?
Yes, you can drive a car insured by someone else in Alberta. You’ll be protected under their policy if the policyholder gives you permission to drive. However, this applies only if you drive their car occasionally. If you drive the person’s car frequently, they must inform the insurer.
Can I drive my parent’s car without insurance in Alberta?
You can’t drive your parent’s car without insurance in Alberta, but they can include you in their policy instead of you having to get one yourself. Additionally, if you drive with a learner’s licence, you still need a responsible adult accompanying you.
Can I get 6-month car insurance in Alberta?
You can’t get a dedicated six-month car insurance policy in Alberta. However, you can buy a regular policy and cancel it after six months.
Can I get car insurance for a month in Alberta?
You can’t get one-month car insurance policies in Alberta because the standard policy lasts 12 months. However, you can get a policy, pay premiums once, and cancel it after 30 days.
Can I have Alberta car insurance while living in BC?
You can’t have an Alberta car insurance policy while living in BC. Once you arrive in BC, you have 30 days to get a BC car insurance policy and 90 days to get a BC driver’s licence.
Can I insure a vehicle I don’t own in Alberta?
You can insure a vehicle you don’t own in Alberta, but you need to prove insurable interest first. You can do this by adding the car’s owner to your insurance policy.
Can I transfer my insurance to another car in Alberta?
You can transfer your insurance to another car in Alberta. Notify your insurance provider, and follow their instructions.
Can someone else insure my car in Alberta?
Someone else can insure your car in Alberta, but they need to prove insurable interest. A good way to do so is by adding your name to the policy.
Can you be refused auto insurance in Alberta?
You can’t be refused auto insurance in Alberta thanks to the All Comers Rule. The rule states that no insurer can deny mandatory insurance coverage to drivers in Alberta as long as they continue to make payments and don’t have debts with another insurer.
Can you bundle car insurance in Alberta with a girlfriend or partner?
You can share car insurance in Alberta with a girlfriend or boyfriend. This is usually done in more committed relationships where the partners live together and share a car.
Can you get temporary car insurance in Alberta?
You can’t get temporary car insurance in Alberta. However, the province offers a temporary driver’s permit for 14 days. Note that this temporary permit still requires auto insurance.
Can you insure a car in Alberta with a BC licence?
You can insure a car in Alberta with a BC licence, but you need to apply for an Alberta licence within 90 days.
Can you insure a car without a licence in Alberta?
You can insure a car without a licence in Alberta, but you must name a licensed driver in the policy.
Can you register a car without insurance in Alberta?
You can’t register a car without insurance in Alberta. A valid policy is one of the registration requirements.
Can you suspend auto insurance in Alberta?
You can’t suspend auto insurance in Alberta. If you want to stop driving for an extended period, you have to cancel your policy.
Do Alberta car insurance companies check your credit score?
Alberta car insurance companies can only check your credit score with your consent – if you say no, they can’t check it.
Do I have to add my child to my car insurance in Alberta?
You only need to add your child to your insurance policy if they drive your car. Otherwise, there’s no need to do so.
Do I need insurance to register a car in Alberta?
You need insurance to register a car in Alberta because it’s one of the requirements.
How do insurance companies write off vehicles in Alberta?
Insurance companies in Alberta write vehicles off when the estimated repair costs exceed the car’s pre-accident cash value.
How does not having a full licence in Alberta impact my insurance rate?
Not having a full licence impacts your Alberta car insurance rates because you’re seen as an inexperienced driver. You may get higher rates if you own insurance with a learner’s licence.
How does the Alberta driver’s licence system work?
Alberta’s driver’s licence system works like in many other provinces, where you go through certain stages to become a fully licensed driver. To graduate from each stage, you must earn enough driving experience and pass the tests.
There are three levels of licences for Albertan drivers:
1. Learner’s licence
2. Probationary licence
3. Full licence
How does tort auto insurance in Alberta work?
The “tort” or “at-fault” insurance system in Alberta works by requiring the at-fault driver’s insurer to pay for damages. Simply put, the bad driver covers the damage caused in an accident.
How much is car insurance for a new driver in Alberta?
The cost of car insurance for new drivers in Alberta varies depending on your personal demographics, vehicle choice, and other factors. With the average being $1,772 you can expect to pay a higher amount than that.
How much is it to insure a used car in Alberta?
Insurance for a used car in Alberta depends on its age, safety track record, and modifications. If it’s in relatively good condition and hasn’t been involved in any accidents, your used car insurance rates might be close to new car insurance rates.
How do you insure a classic car in Alberta?
You can insure a classic car in Alberta by applying for insurance, just like any other car. However, keep in mind that classic car insurance rates are typically higher than regular car insurance rates.
How do you register and insure a car in Alberta?
To register a car, go to a registry agent with the required documents, like proof of ownership, a valid insurance policy, and identification. Meanwhile, get insurance by applying with an insurance broker or agent.
I have a Class 7 (learner’s) licence. Can I insure my vehicle?
You can insure your vehicle with a Class 7 licence, just like any other licence.
Is car insurance cheaper in Alberta than in BC?
Car insurance is cheaper in Alberta than in BC. Alberta has an annual average auto insurance premium of $1,772 more than $100 cheaper than BC’s $1,885.
Is car insurance cheaper in Alberta than in Ontario?
Car insurance is cheaper in Alberta than in Ontario. There’s a nearly $100 difference between Alberta’s annual average rates of $1,722 and Ontario’s $1,874.
Is car insurance mandatory in Alberta?
Car insurance in Alberta is mandatory, like in the rest of the country.
Is hail damage covered by car insurance in Alberta?
Hail damage is covered by car insurance in Alberta if you have comprehensive insurance coverage.
Is ridesharing insurance available in Alberta?
Ridesharing insurance is available in Alberta. It is required when working as a driver.
Is there GST on auto insurance in Alberta?
Alberta charges a 4% goods and services tax (GST) on auto insurance premiums.
Is usage-based insurance available in Alberta?
Usage-based insurance is available in Alberta. Ask your insurer if you want to apply for a policy.
Is there parked car insurance in Alberta?
You can get parked car insurance in Alberta to protect cars you’re not driving for an extended period.
What are the penalties for driving without insurance in Alberta?
The penalties for driving without insurance in Alberta are:
– First offence: A fine of up to $10,000
– Second offence within five years: A fine of up to $20,000
Failure to pay either fine may result in up to six months of jail time.
What is the grid level for auto insurance in Alberta?
The grid level for auto insurance in Alberta is a system that determines the maximum rate insurers can charge for mandatory coverage. Every driver gets assigned a grid level based on how long they’ve been driving and how many at-fault accident claims they’ve made. The more at-fault claims the driver makes, the further they move up the grid – landing them higher rates.
What is the minimum coverage for auto insurance in Alberta?
Alberta’s minimum auto insurance coverage includes third-party liability, accident benefits, and DCPD. All other coverage is optional.
What’s the minimum legal driving age in Alberta?
The minimum legal driving age in Alberta is 14 years old. However, 14-year-old drivers with a learner’s licence must be accompanied by an adult until they get their probationary licence at 16.
Who can drive my car under my insurance in Alberta?
Anybody can drive your car under your insurance in Alberta as long as they have permission.
Who has the cheapest car insurance in Alberta?
The cheapest car insurance in Alberta will depend on your coverage needs, risk profile, and other factors. Compare quotes through MyChoice to find the cheapest car insurance provider for you.
Who regulates auto insurance rates in Alberta?
The Automobile Insurance Rate Board (AIRB) regulates car insurance rates in Alberta. It’s responsible for approving all rate changes for auto insurance providers in Alberta.
Why did my car insurance go up in Alberta?
Many things can cause your car insurance to go up in Alberta. Here are some common causes:
– Recent insurance claims
– Inflation
– Traffic violations
– Increase in vehicle theft
– Rise in auto repair costs
Why is car insurance so expensive in Alberta?
One of the reasons why car insurance is so expensive in Alberta is the city’s high theft rate. The more vehicles are stolen in an area, the more insurers have to pay out – increasing rates for everyone.