How much is insurance for a new driver in Alberta?

Congratulations to the new driver! You’ve just received your driver’s licence, and you’re ready to venture out on Alberta’s roads. We have all the information you need to begin this new chapter. Just one light touch on the brakes before hitting the road: you need to find the right insurance plan. So, how much is insurance for a new driver in Alberta? Below, we answer this and more, including tips and tricks to help you save on your Alberta car insurance.

Car insurance costs for new drivers in Alberta

Let us start by explaining that when it comes to auto insurance rates for new and young drivers in Alberta, the price can vary significantly. This is because insurance companies consider a wide range of factors when setting rates (we'll get into those a bit later).

As for new drivers in Alberta, while we can't give you an exact figure, you can generally expect to pay anywhere from $3,900 to $9,000 annually for auto insurance. That works out to anywhere from $325 to $750 a month.

It's a pretty broad range, but it should give you a rough idea of what to expect when you're shopping around for Alberta car insurance quotes for the first time.

A major factor in this higher price range is that young or new drivers are statistically more likely to get into accidents. Because of this, insurance companies see them as higher risk, which is why new drivers usually face higher insurance costs.

The good news is that after you've spent a few years driving without any accidents, your insurance rate is likely to go down quite a bit. In fact, the average cost of car insurance for the province of Alberta is only roughly $​1,316 annually, or around $110 per month. But this average includes drivers of all ages and experiences.

Factors that determine Alberta car insurance premiums

Since we're on the topic of factors, let's get into how things like age and experience—along with many others—impact your car insurance rates. Understanding how these factors come into play can give you a clearer picture of why you get the rate you do when you're shopping around for Alberta auto insurance quotes. Here are some of the factors that your insurer will consider:

Your age and gender

As we mentioned earlier, young and new drivers usually pay more for insurance because insurance companies use data that shows that less experience on the road leads to a higher risk of accidents.

Similarly, since statistics indicate that male drivers are involved in more accidents, they often end up with a higher risk profile, meaning male drivers often pay more for car insurance than female drivers.

Your driving record and experience

Again, the less experience you have on the road, the higher the risk of you being involved in an accident. Insurance companies take this into consideration and factor it into your insurance rates as they're more likely to have to pay out insurance claims to those with less experience.

Your driving record is also a factor. If you have no driving record, this means they have nothing to compare your driving skills to, so they will compare it to other drivers of the same age and experience. However, if you do have a driving record, and it shows convicted driving tickets or a history of accidents, you can expect even higher premiums because those make you a higher-risk driver.

Your location

Where you live can affect your insurance costs, too. If you're in a city, you can expect to pay more than if you were in a rural area simply because accidents are more common in densely populated places.

They also consider the crime in your area. If you live in a neighbourhood known for car theft and vandalism, your rates will reflect this increased risk.

Insurance prices also vary by province. Some provinces have public, government-run insurance programs, while others use private or a mix of public and private models, which can lead to different rates.

Make and model of your vehicle

Car insurance companies don’t just look at you as a driver—they also take the car you’re driving into account. They consider how costly it would be to either repair or replace your vehicle if you were in an accident and how likely it is to be stolen. The make and model of your vehicle can also determine the price for vehicle repairs, depending on the price of parts.

Fun fact: Despite what many people think, the colour of your car doesn’t actually affect your premium.

So, what does this mean if you're a new driver looking to buy and insure a car? It means it's time to do a little research! The car you choose can make a big difference in how affordable your insurance premium will be.

How your Alberta licence affects your car insurance rates

If you're still working on getting your full licence in Alberta, car insurance will work differently for you, depending on which stage you're at.

As a Class 7 driver, you don’t need to be listed on a policy since you can only drive with a fully licenced driver by your side. So, you don't have to worry about high insurance rates just yet.

If you're a Class 5-GDL (probationary) driver with your own car, getting auto insurance can be pretty pricey due to your limited experience.

On the other hand, if you're a Class 5-GDL driver without your own vehicle, you won't need a separate insurance policy. But if you plan to drive a car owned by someone you live with, you need to be added to their policy as an occasional driver. While this might cause a small bump in their premium, it's much cheaper than getting your own individual insurance as a new driver.

Driving without insurance in Alberta

If you're not up to speed on Alberta driving laws, you might not know just how serious it is to drive without the right insurance. The penalties for getting caught are pretty severe. The fines you could face are way higher than what you'd pay for a year's worth of auto insurance.

Plus, most drivers get caught without insurance because they've been pulled over for another traffic violation or have been in an accident. In either case, not having proper insurance makes things a lot worse.

Without proper auto insurance coverage, you could be fined, have your licence suspended or taken away, and face even higher insurance premiums. Here are the repercussions of driving without insurance in Alberta:

The fines

For a first offence, the maximum fine is $10,000. If you get caught a second time within five years of the first offence, it can go up to $20,000.

Your driving record

Getting caught driving without insurance sticks with you—it'll show up on your driving record and impact your insurance premiums for the next three years.

Your vehicle

If you're caught driving without insurance, there's no driving away with just a warning. Usually, your car will be towed on the spot, and you'll have to pay towing fees to get it back.

Your licence

A judge can decide to suspend your driver's license if they think it's necessary. Having your licence suspended on top of being charged for driving without insurance in Alberta can seriously affect your premiums and make it harder to get insured in the future.

Failure to pay

Driving without insurance usually won't land you in jail, but if you don’t pay the fines for the offence, you could face a jail sentence of up to six months.

Are you a new driver in Alberta? Get the right insurance coverage today with BrokerLink. Contact us for a personalized quote tailored to your needs. Navigate the roads with confidence—start your journey with BrokerLink!

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What car insurance do new drivers need in Alberta?

Valid auto insurance is mandatory for all drivers in Canada, including third-party liability, accident benefits, and direct compensation-property damage coverage, no matter what your age or experience level is. Even international students need car insurance in Alberta.

When you're searching for new driver insurance in Alberta, it's important to know that, at minimum, you need the same amount of coverage as any other driver. However, there are also some additional car insurance coverages we recommend you consider adding to your policy for more comprehensive coverage as you get used to sitting behind the wheel. Here's what's mandatory and what's optional but strongly recommended:

Third-party liability coverage

If you're involved in an accident, your third-party liability coverage takes care of any claims for third-party injuries or property damage. This includes covering the medical expenses for the other party and any legal fees if you end up facing a lawsuit. In Alberta, you're required to have at least $200,000 in coverage, but many drivers opt for at least $1 to $2 million.

Accident benefits coverage

While third-party liability is there to help out the other parties, accident benefits coverage is there to help you. It covers medical expenses, like prescription medications and rehabilitation, for you and any passengers in your car. This is also mandatory coverage in Alberta.

Direct compensation for property damage (DCPD)

DCPD covers the damage to your vehicle, its contents, and loss of use if you're not at fault in an accident. If you're only partially at fault, it covers a portion of the repairs based on your percentage of fault. With DCPD, even though someone else caused the damage, you’ll get paid directly by your own insurance company, making the claims process quicker.

Collision coverage

Collision coverage is a must-have if you're ever in an accident. It takes care of the damage to your vehicle, no matter who's at fault. This coverage is especially beneficial for new and young drivers since they're statistically more likely to be involved in an accident. However, this coverage is optional, so you'll need to add it to your car insurance policy.

Comprehensive coverage

Another popular add-on is comprehensive coverage. It covers damage to your car from things other than a collision. This includes things like fire, weather damage, falling objects, theft, and vandalism. For example, if a tree falls on your car during a strong summer storm, the damage would be covered by comprehensive.

Accident forgiveness coverage

Accident forgiveness coverage is a great way to keep your insurance premiums from going up after your first at-fault accident. If you end up being at fault in a crash, this optional coverage can help protect your rates from increasing. This is another beneficial coverage for new and young drivers.

How can a new driver save on car insurance in Alberta?

Despite having your age and experience working against you, there are still things you can do to help you lower those high insurance costs and find the cheapest car insurance available for you. Here are a few tips that can help you save on car insurance:

Increase your deductible

Our first tip is to opt for a higher deductible. Your deductible is the amount you may have to pay your insurance company if you need to make a car insurance claim. Many people choose to have a $500 deductible, but you could go with $1,000 or even higher.

However, while choosing a higher deductible can lower your monthly rates, keep in mind that if you're in an accident, you'll have to pay more out of pocket. So, make sure the deductible you choose is something you can comfortably afford.

Attend a driver’s education course

Many insurance companies offer a discount if you learn how to drive from a trained professional through an accredited program. You can find a list of the courses near you on the Government of Alberta's website.

Consider a vehicle’s safety features

When you're checking out cars, take a look at their safety features like anti-lock brakes, autonomous braking,  airbags, lane keep assist, and a car alarm. Insurance companies consider these features, too, and having them could help you get a lower rate.

Ask about a telematics device

A telematics device is a device that your insurer installs in your vehicle to monitor your driving habits, like how fast you go, how hard you brake, and how far you drive. Your insurance company then takes this information and uses it to determine your car insurance rates. If your device shows that you're a good and safe driver, you may see lower premiums.

Talk to an insurance broker

Instead of choosing the first quote you get, consider working with a car insurance broker. Insurance brokers are insurance experts. They take the time to shop around and compare personalized quotes from several top insurance companies to find you an insurance plan that makes sense for you. Plus, they can help walk you through things like how to register and insure your car in Alberta or file an insurance claim.

Tips on building a new driver’s insurance history

Insurance history is accumulated over time. Following these tips will help your insurance rate decrease over time:

Avoid lapses in coverage

If your car insurance lapses, it means you're without active, valid coverage. Insurance companies might see a gap in coverage as a red flag, considering you a higher risk. High-risk driver insurance comes with higher premiums. Plus, don't forget that driving without insurance in Alberta can lead to fines and a suspended licence.

Stay conviction free

Receiving convicted driving tickets for speeding or distracted driving will increase your premiums dramatically. In fact, you could see your insurance rates increase as much as 10% for your first speeding ticket. For your second ticket, you could see an increase of as much as 25% to 50%. Further, racking up several minor driving tickets within three years can seriously increase your premiums, as much as 100% or more, and make it tough to find coverage when it's time to renew your insurance policy.

Pay on time

The industry standard on payments is that if you have more than two NSF (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 really mess up your budget! Always pay on time, and if you run into an unforeseen situation, communicate this to your insurance broker.

Adopt good driving behaviours

Speeding, impulsiveness, and distracted driving are some of the leading causes of accidents. An at-fault claim can take up to six years to come off your driving record, and this will be reflected by higher insurance premiums for those six years. Remember to practice safe driving habits.

How to help your college or university student save on insurance

If your child is heading off to college or university and won't be driving your car regularly, you might be able to list them as an occasional driver instead of a primary one. This switch can help lower your insurance premiums while still keeping them covered. Although it might cost a bit more, there are good reasons to keep your child on your car insurance while they're away at school:

• When your child comes home for the holidays, they'll be able to drive your vehicle as much as they want. You'll have peace of mind knowing they're covered.

• Keeping them on your policy maintains continuous insurance coverage, which can be a big help when they eventually get their own car. A longer history of accident-free coverage can lead to lower rates in the future. A lapse in coverage can label them as a high-risk driver, meaning they'll have a harder time looking for cheap car insurance later on.

So, keeping them insured under your car insurance policy, even while they're away at school, will help them find more affordable car insurance when it's time for them to purchase their own car insurance policy.

Looking for car insurance in Alberta?

If you’re looking for new driver car insurance in Alberta, you’ve come to the right place. Our BrokerLink brokers are here and ready to get to know you and find a plan that suits your insurance needs. You can call us, visit our website, stop by one of our local branches throughout Canada, or get a free car insurance quote online. We're always ready to help you find the right insurance fit.

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FAQs for new driver insurance in Alberta

How much does car insurance cost for a new driver in Alberta?

New drivers in Alberta can generally expect to pay anywhere from $3,900 to $9,000 annually for auto insurance. This works out to anywhere from $325 to $750 a month. New drivers face higher insurance rates because they are statistically more likely to get into accidents.

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.