How Red Deer auto insurance rates are calculated
Many factors impact the cost of car insurance in Red Deer. A driver’s age, location, marital status, annual mileage, and driving record, along with the type of vehicle they drive can all impact auto insurance rates. Red Deer drivers might find it helpful to learn about the most common factors affecting insurance premiums in Alberta, so we’ve compiled the list below.
Provincial Laws
Each Canadian province has regulations surrounding car insurance, which include a minimum amount of coverage drivers are required to carry. The minimum coverage in some provinces is higher than others, and generally speaking, the greater the coverage, the more expensive the insurance. For example, in Alberta, drivers must carry $200,000 in third party liability coverage at all times.
Age
Nearly all Red Deer auto insurance companies will include your age to determine your premium. The younger a driver is, the less experience they have and therefore are more likely to get into an accident. This is why young drivers often pay the most for car insurance. People of a certain age past 60 are part of another age group that may pay more for car insurance based on statistics.
Driving history
Another of the most common factors in determining the cost of car insurance is a person’s driving history. Driving history combines one’s driving experience and driving record. Having years or decades of driving experience can work to your advantage if you have a clean record.
A clean record is one without speeding tickets, collisions, or DUIs. The more incidents you have on your record, the more likely it will be reflected in your premiums. Please note that traffic tickets usually remain on your record for three years, which means you could pay a higher premium for all three years.
If you focus on driving responsibly and obeying the rules of the road, your driving experience and clean driving record will likely reward you with a reduced car insurance rate.
Location
Your geographic location can also impact how much you pay for auto insurance, which is why Red Deer auto insurance companies will ask for your address. Generally, drivers who live in or near high-density urban areas like Calgary or Edmonton will pay more for car insurance than those who live in rural parts of Canada. This is because urban areas are more populated which translates to more traffic, which raises a driver’s odds of getting in a collision. Furthermore, if you live in a part of the province that is prone to climate related weather incidents, your car insurance rate could be impacted.
Type of vehicle
The make, model, and year of the car you drive is another common factor used to determine your insurance premium. Red Deer auto insurance companies will use this information to assess how likely your car is to be stolen and how much it will cost to replace or repair it in the event of damage or theft. New, expensive cars, such as luxury sports cars, tend to cost more to insure, whereas older, affordable models may come with cheaper car insurance. The one exception to this rule is if you have a new or expensive vehicle that is equipped with state-of-the-art safety features and anti-theft devices.
Annual mileage
The amount of time you spend on the road is another factor insurance providers will take into account. If you rarely drive your vehicle, your insurance may be less. Conversely, if you spend an above-average amount of time on the road - perhaps you have a long daily commute to work or your job involves transportation - then your insurance premium may be higher. The same goes if you spend a lot of time driving at night, on major highways, or during rush hour.
Car ownership duration
How long you’ve owned your vehicle is another factor that Red Deer auto insurance companies may consider. If you’ve been driving the same vehicle for many years without incident, the insurance company will see this as a green flag and may lower your premium as a result. This is especially true if multiple people in your household have shared the same vehicle for years and have maintained clean driving records during this time. On the other hand, if you purchase a new car each year or every member of your household has their own car, you could pay more for auto insurance.
Marital status
One last factor that may affect your car insurance rate is your marital status. Statistics suggest that married couples are more responsible, so this factor may be considered when your insurance premium is calculated.
How to save money on Red Deer car insurance
Car insurance should never break the bank. Here at BrokerLink, we strive to find you the best price by comparing quotes and unlocking discounts on your behalf. Plus, as experts in all things car insurance, we know the best tricks to save money on Red Deer car insurance. From bundling insurance policies together to attending driving school, check out the following list of tips to get cheap car insurance in Red Deer.
- Purchase multiple car insurance policies from the same provider (savings of up to 20%)
- Buy multiple insurance policies (home insurance, business insurance, leisure vehicle insurance, etc.) from the same provider (savings of up to 15%)
- Purchase a hybrid or electric vehicle (savings of up to 5%)
- Increase your deductible
- Enrol in driving school (for young drivers)
- Pay auto insurance annually rather than monthly
- Install winter tires on your vehicle
Partner with an insurance broker
One last way to save money on Red Deer auto insurance is by partnering with an insurance broker. Reputable insurance brokers from BrokerLink have decades of experience helping Canadians find affordable car insurance policies. Our insurance advisors can make you aware of discounts you didn’t even know you were eligible for, all while helping you shop around for the best coverage at the most competitive rate. When you hire a broker, you’ll have someone by your side to ensure you find the perfect car insurance policy for you and your family. To minimize how much you spend on Red Deer auto insurance, contact BrokerLink today.
Mandatory car insurance in Red Deer
Is car insurance required in Red Deer? Yes, car insurance is mandatory everywhere in Alberta. Auto insurance is provincially regulated, which means if the Alberta government makes it compulsory, then it is compulsory throughout the entire province. To register your vehicle in Alberta, you’ll need to provide proof of a valid car insurance policy. A valid car insurance policy is one that meets the minimum requirements set by the province. For example, the Alberta government has stipulated that all drivers must have policies that include at least $200,000 in third liability coverage. If you aren’t sure what the minimum requirements are in your province, get in touch with BrokerLink today.
What are the risks of driving without insurance in Red Deer?
Driving without insurance is illegal in Alberta. Therefore, there could be serious consequences if caught driving uninsured.
For a first offense in Alberta, an uninsured motorist can be fined a minimum of $2,875 up to a maximum of $10,000. Failure to pay this fine can result in jail time ranging from 45 days to 6 months.
For a second offense, the minimum fine for driving without insurance is $5,000, and the maximum fine is $20,000. Again, failure to pay the fine can result in jail time lasting anywhere between 60 days and 6 months.
These severe fines coupled with the threat of jail time make driving without insurance in Red Deer incredibly risky. So if you are currently driving without insurance in Red Deer or your existing policy is about to expire, BrokerLink can help.
Four elements of compulsory auto insurance coverage in Red Deer
Car insurance policies are made up of multiple components. At its most basic, your Red Deer car insurance policy must include the four coverage types required by the province. Remember that standard car insurance in Alberta was designed to protect all drivers, passengers, and vehicles on the road. From third party liability coverage to direct compensation - property damage coverage, the four mandatory car insurance coverages in Red Deer are as follows:
Third party liability coverage
Third party liability coverage provides legal protection in the event that the policyholder injures someone else or causes property damage to another person’s property, such as their car. This type of coverage can help pay for medical expenses associated with injuries, repairs of a damaged vehicle, court fees, and settlements up to the coverage limit.
Direct compensation - property damage coverage (DCPD)
Direct compensation for property damage (DCPD) protects an insured vehicle against property damage, damage to its contents, and loss of use, so long as the policyholder is not liable for the accident that caused said damage. Under this type of coverage, your Red Deer auto insurance company will likely provide direct payment for the repair or replacement of your car.
Uninsured motorist coverage
Uninsured motorist coverage aims to protect you and any passengers in your vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured. This type of coverage can also protect the policyholder in the event of a hit-and-run. Uninsured motorist coverage may help pay for the costs of injuries, vehicle damage, lost wages, and more.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. Protection is offered regardless of who was at fault for the accident and can help cover the cost of medical expenses, such as prescription medications, physical therapy, or rehabilitation, loss of income, and more.
Why choose a Red Deer car insurance broker
Red Deer drivers will benefit from consulting with an insurance broker.
First, we all know how stressful and overwhelming shopping for insurance can be. But it doesn’t have to be this way. If you let us shop around on your behalf, you’ll have more time to do what you love, such as spending time with friends and family.
Four elements of compulsory auto insurance coverage in Red Deer
Car insurance policies are made up of multiple components. At its most basic, your Red Deer car insurance policy must include the four coverage types required by the province. Remember that standard car insurance in Alberta was designed to protect all drivers, passengers, and vehicles on the road. From third party liability coverage to direct compensation - property damage coverage, the four mandatory car insurance coverages in Red Deer are as follows:
Third party liability coverage
Third party liability coverage provides legal protection in the event that the policyholder injures someone else or causes property damage to another person’s property, such as their car. This type of coverage can help pay for medical expenses associated with injuries, repairs of a damaged vehicle, court fees, and settlements up to the coverage limit.
Direct compensation - property damage coverage (DCPD)
Direct compensation for property damage (DCPD) protects an insured vehicle against property damage, damage to its contents, and loss of use, so long as the policyholder is not liable for the accident that caused said damage. Under this type of coverage, your Red Deer auto insurance company will likely provide direct payment for the repair or replacement of your car.
Uninsured motorist coverage
Uninsured motorist coverage aims to protect you and any passengers in your vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured. This type of coverage can also protect the policyholder in the event of a hit-and-run. Uninsured motorist coverage may help pay for the costs of injuries, vehicle damage, lost wages, and more.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. Protection is offered regardless of who was at fault for the accident and can help cover the cost of medical expenses, such as prescription medications, physical therapy, or rehabilitation, loss of income, and more.
Why choose a Red Deer car insurance broker
Red Deer drivers will benefit from consulting with an insurance broker.
First, we all know how stressful and overwhelming shopping for insurance can be. But it doesn’t have to be this way. If you let us shop around on your behalf, you’ll have more time to do what you love, such as spending time with friends and family.
While you are spending your free time exactly how you want to be spending it, BrokerLink’s insurance advisors will be working behind the scenes to browse coverage options and obtain and compare quotes from the leading insurers in Alberta.
With a car insurance expert in your corner, you’ll have a knowledgeable resource ready to help you get the most out of your insurance policy. We will make finding a car insurance policy that meets your needs our top priority. Find out more by contacting BrokerLink today.
Tips for new drivers in Red Deer
Driving doesn’t come easy to everyone. Just like riding a bike, driving is a skill that takes time and patience to master. As a young Alberta driver, it’s completely normal to be nervous. Try to remember that the more you practice, the better driver you will become. To help you hone your driving skills, we’ve put together a list of tips for new drivers in Red Deer.
Slow down
A tip for drivers of all ages is to drive slowly. Give yourself extra time and space (more on that below) by driving slowly and cautiously at all times. Always obey the speed limit and take your time when accelerating, braking, turning, parking, or changing lines. Additionally, if you are driving in poor weather, such as fog, rain, or snow, at night when visibility is reduced, or through a construction zone, we suggest driving below the speed limit.
Leave ample space
When on the road, remember that space is your friend. We recommend leaving two car lengths between yourself and the vehicle in front of you at all times. This way, if you have to stop suddenly, you have enough room to do so without hitting the car in front. Alternatively, if you are rear-ended at an intersection, this extra space will ensure you don’t bump into the car ahead, causing greater damage. Note that if driving at higher speeds, such as on a highway, or in poor weather conditions like fog, snow, or rain, you should aim to leave an even greater distance between vehicles.
Check your mirrors
A responsible driver is aware of their surroundings at all times. This means not only scanning the vehicles and lanes ahead of you but also checking your rear-view and side mirrors regularly. Doing so will give you an idea of any vehicles or road hazards that are beside or behind you. At the end of the day, the more aware you are of other drivers, the less likely you are to get into a collision.
Attend a driving school
Whether you are a young driver or simply need a refresher, consider enrolling in an approved Alberta driving school. There are driving schools all over the province that can help you hone your practical driving skills while simultaneously teaching you the rules of the road. Plus, enrolling in driving school will give you a chance to practice with someone other than your family members, which can be nerve-wracking. An added bonus of driving school is that for young drivers, completing an approved course can save you money on car insurance.
Get in touch and receive a free Red Deer auto insurance quote today
Ready to begin your car insurance journey?
BrokerLink’s team of knowledgeable and friendly insurance advisors is available to answer your call, respond to your email, or chat in person at one of our many locations throughout Alberta.
Get an auto insurance quote [phone]
More ways to find a great car insurance rate in Alberta
