How much is car insurance in Alberta?
12 minute read Published on Aug 15, 2024 by BrokerLink Communications
All drivers in the province are required to purchase Alberta car insurance. Whether you're a first-time driver or simply curious, you may have some questions regarding how much car insurance rates are in Alberta and how you can potentially lower your car insurance premiums.
If you're due for renewal in the coming weeks, stick around for more information about Alberta car insurance from the insurance experts at BrokerLink.
How much does car insurance cost per month in Alberta?
On average, drivers can expect to pay $1,578 per year on their Alberta car insurance, which is about $132 per month. Now, keep in mind that these are estimates, and the amount you actually pay for Alberta auto insurance will depend on your unique circumstances.
So, for an exact Alberta car insurance quote, we recommend reaching out to different insurance providers directly, using online quote tools that are typically available on any car insurance company website, or contacting BrokerLink for more information.
How much is insurance for new drivers in Alberta?
Because they lack experience behind the wheel, new drivers in Alberta will have to pay more when they buy car insurance than those with years of driving experience. This is because inexperienced drivers are more of a risk to insure compared to someone who has been driving for years (assuming that they've maintained a clean record).
Therefore, if you're a new driver in Alberta, you can anticipate paying anywhere between $300 to $700 a month on average. Don't let these numbers scare you when you go to buy car insurance in Alberta. These numbers are an estimate, and the actual amount you pay will really determine your individual circumstances.
The best thing you can do is reach out to different companies and get quotes from each so you can compare prices and offerings. That way, you can find the cheapest car insurance without sacrificing the level of coverage you end up purchasing.
Why is Alberta vehicle insurance so high?
If you've made a comment to yourself or others about how the cost of car insurance in Alberta is becoming more expensive, you're not wrong. So, why exactly are drivers paying more for their car insurance in Alberta anyway? Well, there's a couple of reasons for this:
Increased number of insurance claims
In recent years, Alberta has experienced an increase in the number of insurance claims filed annually. In fact, Alberta has some of the highest numbers of third-party liability claims in the country. Because of this, insurance companies in the province have had to re-evaluate costs and are required to increase the premiums they charge customers.
More expensive legal costs
Another factor influencing the overall cost of auto insurance in Alberta for drivers is rising legal costs. As legal expenses in the province have increased steadily over time, Alberta drivers can expect higher premiums as a result.
Supply chain problems
Lastly, supply chain issues are also to blame for insurance rates in Alberta. Delays in the supply chain make replacement parts for vehicles not readily available, pushing back mechanics' work. This leads to an increase in rental cars that insurance companies are required to pay for until customers are able to fix their damaged vehicles.
What is the minimum car insurance required in Alberta?
The minimum policy amount for Alberta car insurance is $200,000 in liability coverage, direct compensation, and accident benefits. While purchasing minimum limits may provide you with cheap car insurance, most Alberta drivers opt for more coverage, given that it offers more protection in the event of a claim.
Is car insurance in Alberta cheaper than BC?
Yes, Alberta auto insurance is on average, more affordable than British Columbia. In British Columbia, the insurance industry is public, meaning all car insurance must be purchased through ICBC. As a result, drivers are unable to shop around for cheap car insurance from different providers like drivers in Alberta are.
What factors influence car insurance premiums in Alberta?
As we mentioned beforehand, the amount you'll end up paying for Alberta auto insurance will differ from what others pay. This is partly due to car insurance companies pricing policies differently and your unique circumstances. While each car insurance company uses a different scaling system to calculate insurance premiums, take a closer look at some of the factors that will influence your insurance costs:
Your location and driving areas within Alberta
Where you live and drive in the province can affect your car insurance rate. For example, if you live in downtown Edmonton or Calgary, your car insurance cost may be slightly higher than that of someone living in a more rural area. The reasoning behind this is that cities with more traffic and higher crime rates lead to more insurance claims, making it more expensive for car insurance companies.
Your age and gender
From the perspective of most car insurance providers, the more driving and insurance experience you have, the less of a risk you pose. Additionally, historical data from the automobile insurance rate board indicates that young male drivers are more likely to get into an accident. Therefore, in most cases, their insurance rates will be slightly more expensive. To lower your auto insurance premiums over time, it's important to maintain a clean driving history so your insurance provider will see you as a responsible and safe driver who doesn't pose a risk on the road.
The make and model of the vehicle you drive
Car insurance companies will also take a look at the kind of car you drive. Some vehicles are more expensive than others to insure. That’s because different vehicles have different risks. Some are more likely to be stolen and cost more to repair than others.
Your driving record
Your car insurance premiums will be more expensive if you have been involved in an at-fault accident and submitted a claim, or numerous claims for that matter. Maintaining a good driving record is really the best way to keep your costs low, as car insurance companies will view you as a low risk to insure compared to those with a driving history that features numerous claims and at-fault accidents.
How much you drive (annual mileage)
Driving more often and for longer periods of time can actually increase your insurance in Alberta. This is because you're at a higher risk of being involved in an accident the more time you spend behind the wheel.
Your deductible amount
Your deductible is the amount you pay when an auto insurance claim is filed before your insurance company will pay the rest. If you opt for a lower deductible, you could end up paying for insurance in Alberta than you would by choosing a higher deductible.
Are you looking for Alberta car insurance quotes? Contact the team from BrokerLink! We've got access to some of Canada's best car insurance companies and policies, allowing us to customize your coverage based on your needs and budget!
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How can I save on car insurance rates?
If you're looking for the best car insurance in Alberta but want to keep your costs as low as possible, here are some of our best tips and tricks to do so:
Take a driving course
To improve your driving record, consider taking a safe driving course. This will show your provider that you're a responsible driver who is dedicated to following the rules of the road. It can also help you save on your car insurance in Alberta the next time you're up for a renewal.
Maintain a clean driving record
This one's obvious. If you want car insurance in Alberta that doesn't cost an arm and a leg, you'll need to maintain a good driving record. Remember to follow the rules of the road, plan your route ahead of time, be mindful of other drivers, and avoid speeding or other illegal activities. Not only can reckless driving impact your record, but it can also put you and others on the road at risk.
Shop around for different Alberta car insurance quotes
Because car insurance in Alberta operates under a private insurance industry, drivers are able to shop around for different auto insurance rates and policies. We suggest getting a car insurance quote from multiple insurance companies and finding the one that fits your budget and needs.
Bundle your auto and home insurance
If you currently have other insurance policies in your portfolio, you might want to consider bundling them with the same insurance company. Most companies offer customers discounts for purchasing multiple policies from them as a thank-you for their business.
So, if you want to save, consider purchasing your auto insurance with the same company you already have your home insurance or other insurance with. Doing so will also make overseeing your coverage easier for you.
Ask about discounts
If you want affordable car insurance in Alberta, make sure to ask your provider if there are any discounts available that you are eligible for. Some common discounts include bundling your insurance coverage, maintaining a clean driving history, being a member of a professional organization, and more.
Insure multiple vehicles with the same insurance company
If you live in a household with multiple cars, you can actually save quite a bit of money on your premiums when you insure them with the same company. Many insurers offer multi-vehicle discounts, which can reduce what your overall premiums cost. Again, doing this will also make it easier for you to oversee your auto insurance policies throughout the year.
Pay for your auto insurance premiums upfront instead of monthly
If you're able to do so financially, consider purchasing your auto insurance annually rather than monthly. When you pay for auto insurance on a month-to-month basis, you'll be charged more, as the insurance company has to pay an administration fee. However, when you buy your auto insurance upfront, you can avoid these administrative costs and ultimately save on your insurance.
Install safety features on your vehicle
Installing safety features on your vehicle, like anti-lock brakes, dash cameras, alarm systems, and other devices, can help you save on your auto insurance as well. These systems are meant to prevent vandalism and theft and decrease the chance of being in an accident. By showing your insurance provider that you have taken steps to make your vehicle safer, they will likely give you a discount on your insurance rates.
Install winter tires
Alberta is known for its freezing temperatures and harsh driving conditions during the wintertime. Without snow tires, you put yourself and others at risk while on the road. By installing winter tires, you'll have more control over your vehicle during icy conditions, which will lower the chance of you being in an accident and filing a claim.
Increase your deductible payment
As we mentioned, increasing your deductible payment could help you lower your auto insurance costs slightly. The deductible is what you're in charge of paying when you file a claim with your provider before your policy kicks in, and your insurance company in Alberta will pay for the rest of the costs.
By increasing this deductible amount, you're essentially taking on more responsibility, which reduces the costs your provider has to pay, meaning more affordable premiums. Just keep in mind that this isn't the best option for all drivers. Only those who are able to comfortably afford to pay a higher deductible should consider this option.
Work with an insurance broker
Instead of working with an insurance agent in Alberta, consider working with a broker instead.
Brokers don't work for any specific provider. Rather, they work independently from insurance companies, which means they have access to multiple policies from numerous different providers. This allows customers to shop around freely and get different car insurance quotes, making it easier for them to find the cheapest car insurance in the province.
What car insurance do I need?
All Canadian drivers are required by law to purchase car insurance, also known as mandatory insurance. This auto insurance in Alberta is meant to protect the interests of all motorists in the event a car accident occurs, and an insurance claim is filed. Alberta car insurance that is considered mandatory coverage in the province includes:
Third-party liability coverage
Third-party liability coverage is a type of auto insurance in Alberta that offers policyholders financial protection in the event a third party files a claim that alleges damages or injuries caused by the policyholder's vehicle. Third-party liability coverage can be divided into two categories:
Bodily injury liability
If your vehicle causes injury or death to another person, this car insurance policy will cover medical expenses, lost wages, legal fees, and other related costs.
Property damage liability
If your vehicle damages someone else's property, liability insurance will also cover any repair or replacement costs.
In Alberta, the minimum liability coverage all Albertan drivers must purchase is $200,000. However, most drivers opt for a higher limit as basic coverage may not always be enough to protect their financial interests in the event a claim is filed against them.
Just keep in mind that opting for more car insurance in Alberta beyond standard policies will increase your premiums costs.
Accident benefits coverage
Accident benefits are another mandatory coverage that all Albertans must purchase. This auto insurance coverage provides medical benefits to you as a driver and any passengers in your vehicle if you are involved in a car accident, regardless of whether you are determined to be at fault for the collision or not. Accident benefits will pay for the following:
Medical expenses
Accident benefits will cover the costs associated with medical treatments and rehabilitation services required following the accident. This can include anything from ambulance and hospital bills to physiotherapy, chiropractics, massage therapy, and any other expenses.
Loss of income
If you or any of your passengers are unable to work as a result of the car crash, this auto insurance policy will also provide a portion of lost income during the recovery period.
Funeral and death benefits
In the unfortunate event that you, a passenger, or another third party passes away following the accident, financial support for funeral and burial costs will also be covered. Death benefits to surviving family members and any dependents will also be compensated.
Caregiver benefits
Covered expenses are also a part of this insurance policy. Compensation will allow individuals to hire a caregiver if those injured are the primary caregivers for any dependents and are no longer able to do so because of the injuries they sustained.
Other benefits
Finally, other benefits may include house cleaning services or expenses related to home maintenance, depending on the specifics of your insurance in Alberta.
Direct compensation property damage coverage
Direct compensation property damage coverage is a type of auto insurance in Alberta that provides drivers with compensation for any damage caused to their vehicle or contents within the vehicle when they are found not at fault for the collision.
Ultimately, direct compensation coverage is an essential Alberta auto insurance that is designed to make your claims process easier by allowing you to communicate and deal directly with your own insurance form rather than the company that insures the at-fault driver.
Optional car insurance
As mentioned, certain car insurance in Alberta is mandated by the Alberta government. However, beyond basic car insurance, motorists in the province are also able to purchase additional policies that insurance companies offer. Here are some add-on insurance coverage you might want to consider:
Collision coverage
Collision is a type of add-on Alberta auto insurance that helps pay for any repairs or replacements needed for your vehicle if it is damaged in an accident or an object. This is helpful if you are found at fault for the incident or in situations where the fault is undetermined. For this insurance coverage to kick in, Alberta drivers will first need to pay their deductible before their insurance company will pay for the rest.
Comprehensive coverage
Comprehensive insurance is a policy specifically designed to pay for repairs or replacements of the policyholder's vehicle if it is damaged or written-off due to a non-collision event. While the specifics of comprehensive coverage different between policies, common hazards include flooding, severe weather, falling objects, vandalism, theft, and more.
Comprehensive and collision coverage both require you to pay a deductible before the insurance provider will compensate for the remaining costs.
Accident forgiveness
Accident forgiveness is a final optional car insurance in Alberta that is meant for young drivers and inexperienced drivers. This auto insurance prevents your car insurance premium from increasing following your first at-fault accident. Ultimately, this add-on car insurance policy is specifically designed to reward safe driving and give drivers a second chance who have otherwise had a clean record up until their first accident.
Get auto insurance in Alberta with BrokerLink
Are you in the market for cheap Alberta car insurance? Look no further than BrokerLink. BrokerLink is a leading insurance brokerage with years of experience and locations across Canada. The team from BrokerLink is well-equipped to help Albertans find high-quality, affordable car insurance policies tailored to their needs.
If you're in the neighbourhood, come on in and visit us in-person to work with one of our friendly and knowledgeable insurance brokers. Unable to make it? No problem, don't hesitate to give a call directly to speak with someone over the phone.
Want to compare car insurance quotes from several of Canada's top insurance companies? Feel free to use our online quote tool that's available on your computer and mobile device to get competitive auto insurance quotes on-the-go!