Congratulations, new driver! Now that you have your driver’s licence, you can take Alberta’s roads by storm. At this point, you’re probably ready to purchase a car. However, you should tap the brakes a little before you do so. You need auto insurance to drive legally on the road.
Unfortunately, drivers under the age of 25 are statistically more likely to be involved in a car accident due to their inexperience behind the wheel. Luckily, once you have a few years of accident-free experience behind the wheel, your insurance costs will decrease. It is important to note that if you do not get your licence until you are 26 you may still pay the rates of an inexperienced driver due to your inexperience.
Are you ready to learn about new driver insurance in Alberta? Follow along as we explore the exciting world of auto insurance and how you can reduce your rates.
Factors that affect car insurance premiums in Alberta
When it comes to determining your car insurance costs, insurers take many factors into consideration. Car insurance in Alberta can fluctuate depending on certain aspects, and this is especially true for new and younger drivers. Let’s review some of the things insurance companies take into account when determining the costs of car insurance in Alberta:
Age
Your Alberta car insurance rates can vary depending on how old you are. Drivers under the age of 25 tend to get higher car insurance quotes compared to older drivers with more experience on the road. Young drivers are prone to making riskier decisions on the road and don’t have extensive driving records to prove they can be safe on the road.
Where you live
Alberta is a diverse province with small towns and densely populated cities. In other words, drivers who live in bigger cities with more traffic are more likely to pay more for car insurance. This is because drivers in these areas are more likely to get into accidents and at a higher risk for theft and vandalism. Because they are more likely to make an insurance claim, insurance companies have to charge more.
Type of car you drive
The make and model of a new driver’s car directly impacts their insurance rates. More expensive vehicles cost more to insure because more money is required to repair or replace them. In comparison, if a new driver makes an insurance claim while owning a lower-priced vehicle, the insurance company won’t have to pay out as big of an amount.
These are basic factors that affect new driver insurance rates in Alberta. Although you likely won’t get cheap car insurance rates right away, you can use these factors to lower your rates in the future. Insurance providers in Alberta will lower your rates if you are a safe driver. Some of these factors are beyond your control, but the car you choose to purchase is something you control. We’ll explore this further in the following section.
The effect the car you drive has on your Alberta car insurance rates
Car insurance companies will use the vehicle you drive to calculate your insurance costs because some are riskier to insure than others. Factors such as the probability of getting into car accidents, the costs of repairs, and which car criminals are more likely to steal or vandalize also increase Alberta car insurance premiums. It’s your job as a new driver to do your research before purchasing car insurance. The vehicle you choose to drive directly affects your auto insurance rates. Below, we will explore which cars are the most and least expensive to insure in Alberta:
Most expensive cars to insure in Alberta
New driver insurance is expensive enough, and having one of these vehicles will increase the cost even more. While these are all nice vehicles, as a new driver, you will have to pay more to insure them. Keep in mind that these costs are on top of your potentially expensive car payments. Here are the five most expensive cars to insure in Alberta:
- BMW 328i 4DR
- GMC Sierra 1500
- Chevrolet Camaro LT
- Mitsubishi Lancer Evolution MR
- Chevrolet Equinox LS V6
Least expensive cars to insure in Alberta
If you’re looking to save money on your Alberta car insurance rates, you should opt for a safe vehicle that isn’t prone to accidents or other damages. Car insurance companies calculate your rates based on the statistics of the specific vehicle you drive, among other factors. With that in mind, consider trying one of the five least expensive cars to insure in Alberta:
- Mazda Protégé 5
- Dodge Dakota SLT V8
- Subaru Impreza WRX Wagon
- Chevrolet Cobalt SS
- GMC Jimmy S Series
Alberta car insurance companies consider the car you drive when determining your rates. When you buy a new car, the parts are more expensive to replace. When you’re a young driver, consider sacrificing some of the bells and whistles to lower your car insurance rates. After all, the high prices you’ll be paying are only temporary, and you can get your dream car once you maintain a clean driving record for a few years. Next, we will discuss the mandatory coverage required in Alberta.
Mandatory car insurance coverage in Alberta
In Alberta, the average car insurance policy includes mandatory coverage. In other words, you have to have these types of coverage on your car insurance policy to legally drive on the road. When you get your own insurance, you will need basic liability car insurance coverage to protect you in the event of an accident. Let’s review the types of car insurance coverage you need to drive on Alberta’s roads:
Third-party liability coverage
Third-party liability coverage protects you from having to pay for injuries and property damage caused by an accident. It’s important to note that it will also help pay for legal defence and court fees if needed. The minimum amount of coverage will vary between provinces, but it’s generally a minimum of $200,000.
Accident benefits coverage
If you get injured in a car accident, accident benefits coverage will help pay for medical expenses. These include physiotherapy, chiropractic and other specialized rehabilitation services. Accident benefits coverage also assists you with income replacement if you are out of work, as well as death and funeral benefits.
Uninsured motorist coverage
This type of coverage comes into effect if you are involved in a hit-and-run accident or a collision with an uninsured driver. Uninsured motorist coverage can help you pay for the expenses associated with the accident. Remember that you need a car insurance policy regardless of how much driving experience you have in Alberta.
It’s illegal to drive without certain types of car insurance coverage in Alberta. Insurance providers will tell you what type of coverage you need when you purchase car insurance. However, as a new driver, you have to weigh the risks of being on the road. That’s why there are optional types of insurance coverage that can help you in certain situations. We will review comprehensive and collision coverage and more next.
Optional car insurance coverage in Alberta
In Alberta, optional car insurance coverage is available. The insurance bureau doesn’t require you to have these types of coverage, but they can be helpful in certain situations. If you are getting your own insurance, you might not need them. However, when leasing a vehicle, you may require them. Here are the types available. Here are the different types of optional insurance coverage:
Collision coverage
Collision coverage will protect you if you are the at-fault driver when you get into a car accident. Although it’s not mandatory, this type of car insurance coverage can be helpful if you live in an area that’s prone to accidents. In other provinces, direct compensation - property damage exists to help you if you’re not at fault, but in Alberta, you have to pursue the at-fault driver directly.
Comprehensive coverage
Comprehensive insurance coverage will protect your car from damages that aren’t a direct result of an accident. In other words, you can opt into this type of car insurance to protect your vehicle from unexpected circumstances when parked, such as vandalism, extreme weather events, and falling objects. If any of these events occur, you won’t have to pay out of pocket.
Accidents forgiveness coverage
Getting into your first at-fault car accident can raise your rates. However, if you opt for accident forgiveness coverage, your rates will not change. This type of coverage prevents your insurance company from increasing your premiums after your first at-fault accident. It is recommended for new drivers to help maintain their clean driving records.
Getting car insurance in Alberta isn’t a difficult process. However, knowing what types of car insurance coverage to get can be difficult. That’s why you should get the professional opinion of an insurance broker before selecting a policy. With that said, new driver insurance will always cost more, but you can lower your rates right away by doing a few extra things. Next, we will learn about the many ways you can save money on your auto insurance.
Ways to save money on auto insurance in Alberta
As a new driver, you’re going to pay more for car insurance. Since you don’t have as much experience on the road, you don’t have the driving history to prove you’re a safe driver yet. However, there are ways to decrease your auto insurance rates while getting the coverage you need. Here are some tips to save money on your auto insurance as a new driver:
Take a driver’s education course
New drivers can reduce their auto insurance rates by taking a recognized driving course. Many insurance companies offer a discount if you learn how to drive from a trained professional from an accredited program. Find a list of approved driving courses on the Government of Alberta’s website.
Increase your deductible
Until you build up a good driving record, increase your deductible. A higher deductible is a great way to reduce your monthly auto insurance rates. However, it’s important to note that you will have to pay more out of pocket if you get into an accident. Make sure you can afford your deductible, though. Learn more about car insurance premiums and deductibles in our blog post.
Purchase a safe vehicle
When it’s time to buy a new car, consider purchasing one with extra safety features for lower car insurance rates. Anti-lock brakes, airbags, and a car alarm can all make a difference. Car insurance costs in Alberta will vary. Despite this, you will pay less for a car insurance policy if you purchase a vehicle with the previously mentioned safety features.
Get an insurance broker
When shopping around for auto insurance coverage, consider getting a broker. A broker will help you find the best car insurance policy for you at an affordable rate. Since you aren’t an experienced driver, your Alberta auto insurance rates will be higher. That’s why you need a local insurance broker who understands the roads you will be driving every day.
Tips for building a new driver’s insurance history in Alberta
It takes time for new and young drivers to build a car insurance history. In other words, getting lower premiums is hard when you don’t have enough time on the road to prove you can keep a clean driving record. This is true, but new and young drivers can follow these tips to get lower car insurance quotes in the future. Continue reading to learn more:
Avoid lapses in coverage
To get the cheapest car insurance, you need to have some form of consistency. In other words, you should maintain consistent auto insurance coverage to show your car insurance company that you are a responsible driver. Being uninsured for long periods of time can cause car insurance companies to think you are an irresponsible driver. That’s why you should be on top when renewing your car insurance policy and not letting it expire. After all, it’s illegal to drive without car insurance in Alberta.
Stay conviction free
If you are constantly getting speeding and distracted driving tickets, car insurance companies will think you are riskier to insure. Bad driving habits will impact your car insurance rates, whether you’re the principal driver or the secondary driver of a vehicle. This is something young drivers should be aware of, especially when shopping around for their insurance policies.
Pay on time
The industry standard on car insurance payments is that if you have more than two NSFs (Non-Sufficient Funds) each year, you will not be eligible for payment plans, and you will have to pay your premium upfront annually. This can give you higher premiums. When you buy car insurance, ensure you can afford the payments and communicate with your broker if your payment is going to be late.
Minimize at-fault accidents
Once you have your driver’s licence, you should adopt good driving habits. An at-fault accident claim can take six to nine years to come off your insurance record. As a result, you will pay more for your auto insurance policy. Speeding and impulsive driving are the leading causes of accidents. Car insurance companies will charge you more if you frequently get into at-fault accidents.
To get the best car insurance quotes, you have to shop around. However, by following these steps, you can lower your insurance rates over time. This is a gradual process and won’t happen after a day or two. Taking a driver’s education course and maintaining a clean driving record doesn’t happen overnight. Despite this, you can take these steps to be a better driver and keep the roads safer for everyone.
Contact BrokerLink for car insurance in Alberta!
Alberta insurance companies will charge various rates for car insurance. However, they do have to be fair even though they aren’t government-regulated. To find the best car insurance rates, you should enlist the help of an insurance broker in Alberta. Getting in touch with a BrokerLink broker is your best bet. If you’re ready to get insured, get in touch with a BrokerLink insurance broker — it’s easy:
- Give us a call
- Visit one of our community branches
- Complete a quote online, and we’ll call you back
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Car insurance in Alberta for new drivers FAQs
How much does not having a full licence in Alberta impact my car insurance rate?
Once you have your full driver’s licence in Alberta, expect to pay less for car insurance. With that said, your driving experience and insurance history will also help determine the auto insurance insurance quotes you get.
Who sets auto insurance rates in Alberta?
Alberta has a private insurance market. That means car insurance companies can determine rates. However, the provincial government closely regulates car insurance companies to ensure the rates are fair.
Is car insurance required in Alberta?
Yes! Every car driving on the road must be insured. In fact, it’s a legal requirement in every Canadian province and territory. Car insurance protects drivers, passengers and everyone else on the road.
The data provided by BrokerLink Inc. is based on rates paid by customers of specific Canadian insurance markets only. The content within this article is for informational purposes only — coverage advice should only be provided by a licensed insurance broker.
If you have any questions, contact one of our local branches.
