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Alberta Car Insurance

When it comes to Alberta auto insurance, it is a mandatory requirement for all drivers who travel on Alberta’s roads to have auto insurance coverage that is adequate enough to protect on your own vehicle and a potential motor collision, property damage or another person.

Often regarded as one of the more picturesque provinces in Canada, Alberta offers a diverse range of landscapes making for wonderfully scenic drives. You can travel across beautiful prairies, lush forests or arduous mountains and not forgetting some of Alberta’s larger cities, which are also worth a visit. The province is the fourth most populous within Canada, with a little over 4 million inhabitants, as you’d expect the majority of these reside within the larger metropolitan areas such as the capital, Edmonton and Calgary.

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3 Important Things to Know About Car Insurance in Alberta

Insurance is a right: It is illegal for any auto insurance companies to refuse basic coverage to any driver. Regardless of your driving record, area you live in or the car you drive they must provide you with insurance options for basic coverage. The only reason that is acceptable to deny coverage is if you have a history of not paying your premiums.

Premiums are determined by grid levels: Unlike provinces such as Ontario where the prices are determined solely by the company, Alberta uses a grid system that sets caps for how much people can pay for insurance based on multiple factors within their driving history. This way people know what the most will be that they are required to pay. You can see where you may fit using the Alberta grid system calculator. According to the Automobile Insurance Rate Board (AIRB) only about 6% of Alberta residents pay the grid rate while the remaining 94% pay less than the grid rate.

Alberta doesn’t have a no fault auto insurance system: This simply means that insurance companies in Alberta will cover your damages based on who is at fault for the accident. So in a situation where you get into an accident and you are not at fault. Typically your insurance company will cover a portion of your damages and the rest will need to be paid by the insurance company of the person who is at fault.

Start Comparing Alberta Car Insurance Quotes

Often regarded as one of the more picturesque provinces in Canada, Alberta offers a diverse range of landscapes making for wonderfully scenic drives. You can travel across beautiful prairies, lush forests or arduous mountains and not forgetting some of Alberta’s larger cities, which are also worth a visit. The province is the fourth most populous within Canada, with a little over 4 million inhabitants, as you’d expect the majority of these reside within the larger metropolitan areas such as the capital, Edmonton and Calgary.

When it comes to Alberta auto insurance, this is a mandatory requirement for all drivers who travel on Alberta’s roads and at minimum you are required to have auto insurance coverage that is adequate enough to protect on your own vehicle and a potential motor collision, property damage or another person.

*Actual Quoting Data. Based On A Clean Driving Record.

How Much Can You Expect to Pay for Your Alberta Auto Insurance

While Alberta uses a grid system to determine the maximum that people will pay for car insurance most people will pay much less than that. Generally if you live in Alberta you can expect to pay around $1,179 annually, which puts you in the third most expensive province within Canada. Admittedly, this isn’t as high as you might expect but it’s still a sizable purchase decision. Ultimately your average premium will come down to the geographic location and given the size of Alberta this may vary considerably.

For example, if you live in the city it’s fair to assume your average car insurance should be fairly aligned to the average or slightly higher. However if you live and spend most of your driving in the wilderness of Alberta the average costs should be lower thanks to a number of beneficial factors. The most obvious one is a smaller amount of cars on the roads, giving you cheaper car insurance.

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.

If you are looking for more information about auto insurance in Alberta’s cities, check out our detailed pages about Calgary and Edmonton.

Area Average Rate
Edmonton $1,237
St Albert $1,139
Fort McMurray $1,136
Peace River $1,130
Sturgeon County $1,139
Calgary $1,117

How Does Alberta Car Insurance Compare to Other Provinces

Firstly, Alberta is somewhat unique in their pricing for car insurance. While Alberta is a private system the government does include caps on how much a driver will have to pay based on their driving record. In a way you could say that it is a hybrid pricing system because companies have discretion to set prices within certain guidelines.

Second, Alberta doesn’t have a no-fault insurance system. What a no-fault system means is that when a collision occurs rather than you having to deal with the insurance company of the person who is at fault, each person can file a claim with their individual insurance company. The benefit of this is that you typically get money for damages faster under a no-fault system, however you can be limited on recovering some costs such as pain and suffering.

In Alberta, drivers are only compensated for a certain amount from their insurance companies and then they have to go after the other person’s insurance company for the rest of their compensation, this is known as a tort-based insurance system.

9 Ways to Try Get Cheap Alberta Auto Insurance

Alberta has relatively cheap auto insurance rates when compared to other provinces thanks to their grid system. But there are still several things you can do as a driver to get cheap car insurance quotes:

1) Find the cheapest auto insurance company

One of the simplest ways to reduce your car insurance cost in Alberta is to use an insurance quoting service. Companies like My Choice make this easy by showing you all of the auto insurance companies that fit your needs so that you can see what is the most affordable coverage plan for you. You can compare all potential insurers, find the cheapest auto insurance company that meets your needs and see the average cost of auto insurance in Alberta in one place. Making it easy to compare insurance options to find the best deal.

2) Bundle up your insurance packages

Adding other types of insurance such as house or condo insurance to your car insurance plan will typically lower your rates and give you the cheapest insurance possible.

3) Drive safely

Your driving record impacts the rate you get as a driver. In Alberta, a traffic ticket will stay on your record for 3 years. If you can go without a convocation for 3 years you will see a decrease in your car insurance costs. Also, The more times you file a claim due to an accident, the more likely your insurance rate increases. If you are in an accident, keep in mind that after three years you can get that accident removed from your driving record just like a traffic ticket.

4) Choose the right type of vehicle

Cars with high crash-test scores, low theft ratings and less powerful engines tend to have cheaper insurance rates. So keep this in mind when deciding on the type of car that you are
going to buy.

5) Hybrid vehicle discount

Having an electric vehicle or a hybrid vehicle that has a gasoline and electric motor you can get a good discount.

6) Install Winter Tires

In a province like Alberta where heavy snow and ice can make the roads much more dangerous, having safety features like winter tires can reduce your auto insurance premium.

7) Autonomous emergency braking discount
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This applies for any vehicle that was equipped by the manufacturer to detect and automatically apply braking when getting too close to vehicles.

6) Install anti-theft devices

Compared to other provinces Alberta ranks high in car thefts and that increased risk will have an effect on the cost of your car insurance. By installing an anti-theft device you can prove to your insurer that you are a lower risk and pay less in car insurance.

7) Take a driver’s education course

If you want cheap auto insurance quotes, one of the best things you can do, especially as a young driver, is to take a driving course. As an inexperienced driver your lack of experience is seen as a high risk for auto insurance providers. By taking a formal driver’s course you can reduce your car insurance by making yourself less of a risk in the eye’s of insurers.

8) Have a good credit score

Your insurance premiums will be affected by your credit score. Auto insurance companies want to be sure that they will be paid on time and they will often look at your credit score to see how likely you are to pay your bills on time. If you have a good credit score you will be seen as low risk and you will be more likely to get cheap car insurance quotes.

9) Professional Occupation Discount

If you have certain eligible occupations and you have a university degree, you may receive a discount for insuring that vehicle.

Alberta’s Laws on Car Insurance

In Alberta, auto insurance is split into 3 sections:

  1. Claims related to any injuries and damages to other people and their property.
  2. Claims related medical expenses for anyone that was involved in an incident including the policy holder.
  3. Claims concerning the damage to your vehicle.

 

Mandatory Auto Insurance Coverage in Alberta

 

To drive legally in Alberta, you are required to have the following as two minimum requirements for car insurance coverage, they are accident benefits and third-party liability. Accident benefits coverage is the sort that protects you or your family if somebody is injured and killed during a collision, and it doesn’t matter who is at fault for the incident. For third-party liability, you are required to have at minimum coverage for $200,000 in Alberta, this type of coverage will ensure you are protected if you’re involved in an accident whereby someone’s property is damaged or if you kill, injure someone.

Optional Extras for Car Insurance in Alberta

There are two main optional car insurance coverages you can receive in Alberta:

– Collision Coverage
– Comprehensive Coverage

Collision Coverage: This type of coverage protects you in the event that you need repairs or a full replacement following an accident that you are involved in. This includes more than just other vehicles and covers accidents with objects like animals, trees, single-vehicle rollovers and hit and runs.

Comprehensive Coverage: This type of coverage protects you against many other things that may damage your car outside of a collision. Some examples include:

– Hail
– Fire
– Vandalism and theft
– Falling Objects

Additional Optional Auto Insurance Coverages

Alternate Transportation: This helps to cover the cost of a rental car in the event that your vehicle is unusable while it is being repaired or replaced due to a covered risk.

Financial security for your family: Having family protection coverage gives your family extra financial support in the event of injury or death caused by a driver that had insufficient coverage.

Deductible reduction over time: This reduces your deductible by as much as 20% each year if your vehicle is claims free, which can save you a lot of money in the long run if you’re a safe driver.

What Cities Have the Cheapest Auto Insurance in Alberta

In Alberta prices can vary greatly depending on the city that you are living in. The cheapest cities in Alberta are Lacombe, Devon and Vegreville.

Area Average Rate
Lacombe $753
Devon $781
Vegreville $833
Medicine Hat $901
Canmore $934
Banff $937
Okotoks $952
Aldersyde $961

Get a Quote for Alberta Car Insurance Here

My Choice makes it easy for you to get quotes for any province in Canada, all we need from you to get started is your postal code. If you would like to get free quotes for Alberta car insurance in less than 3 minutes try our free quoter, get started by entering your postal code below.

Alberta Car Insurance FAQs

  • How much is car insurance in Alberta?
    As of 2021, the average car insurance cost in Alberta is $1,316. Rates vary based on a wide range of factors that differ by the insurance company. Big cities like Edmonton have higher rates than less populated places such as Banff. Women generally get lower quotes than men. Drivers over the age of 20 typically pay lower auto insurance costs than younger drivers who are less experienced on the road. Traffic law violations and prior accidents also increase auto insurance premiums. Car insurance companies even take the make and model of the car into consideration when calculating premiums. More recently, how much you drive can also be a significant factor.  Alberta now offers usage-based insurance (UBI) policies, which provide more flexibility than traditional, fixed-rate policies. As you can see, many things factor into insurance quotes in Alberta. Comparing rates is the best way to find cheap car insurance.
  • Who can drive my car under my auto insurance in Alberta?
    In Alberta, any holder of a valid driver’s license can operate your vehicle under your auto insurance policy with your permission.  However, regular and occasional drivers must be included in your car insurance policy. Rare drivers, people who only drive on occasions, such as driving you home after you’ve had a drink, only need to be insured if they live with you.  In fact, anyone of driving age who lives in your home must be included on your car insurance, unless they possess their own policy.
  • How does Alberta auto insurance work?
    All drivers in Alberta must carry $200,000 in third-party liability and $50,000 in accidental coverage. Without proof of coverage, drivers cannot register their vehicles. Independent companies regulated by the Automobile Insurance Rate Board (AIRB) and the Office of the Superintendent of Insurance supply this coverage.
  • How does no-fault insurance work in Alberta?
    No-fault auto insurance is designed to help shorten and simplify the claims resolution process and often leads to lower insurance rates. Rather than attempting to prove fault, each driver files a claim on their own policy, regardless of who caused the accident. This avoids time-consuming and costly battles about who is responsible for accidents. Alberta is not yet a no-fault province, but it may soon become one.
  • Who sets auto insurance rates in Alberta?
    In Alberta, car insurance is private, meaning rates are set by individual companies. However, insurance rates are reviewed quarterly by the Automobile Insurance Rate Board (AIRB) and the Office of the Superintendent of Insurance to make sure any rise in premium cost is justified.
  • What are the types of car insurance available in Alberta?
    When comparing quotes for auto insurance, it is important to understand the types of insurance available in Alberta. All drivers must have third-party liability coverage plus accident benefits coverage. Third-party liability insurance covers medical, legal, and other accident-related costs incurred by another person. Accident benefit coverage pays for other expenses like fees for medical assistance, the cost of rehabilitative care, and death and funeral charges. This mandated, minimal coverage protects other people and property more than it protects the policyholder, which is why many Albertans choose to supplement this basic mandated coverage with optional insurance, including the following: Collision coverage pays the cost of damage to your vehicle that occurs during a collision, even if you are at fault. Comprehensive coverage reimburses costs for damage or the loss of your car if it isn't caused by the collision itself. Named Perils coverage compensates for losses to your vehicle caused by specified events—for instance, theft, extreme weather, and civil unrest. All Perils coverage combines Collision and Comprehensive coverage with specific perils chosen by the driver. Cheap car insurance isn't always the best option in Alberta. Having sufficient coverage to protect all your assets in the event of a major motor accident is important for long-term financial health.
  • What’s the minimum requirement for car insurance in Alberta?
    Alberta requires less mandatory auto insurance coverage than some other provinces. The mandatory minimum coverages in the province are as follows: Third-Party Liability coverage of $200,000: This coverage pays for other people's damages incurred during the motor accident.  Most drivers choose to increase this coverage to $500,000, $1 million, or, the most popular, $2 million to ensure their assets are protected in the event of a major incident in which costs can easily mount. Accident coverage of $50,000: This covers other expenses related to the motor accident, no matter who is at fault. These basic coverage options are all that’s required by law in Alberta. However, if you have assets to protect, it is often best to supplement them with optional insurance. Many car insurance add-ons also won't make a significant difference in your premium. Your quote should include costs for each coverage type. That way, you can make an informed decision before purchasing a policy.
  • Reportable Collisions in Alberta, 2016 – 2020

    Source: Alberta Traffic Collision Statistics 2020

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