How Much is Car Insurance in Alberta?
Although the province is known for its vast oil fields, rambunctious stampedes, and thriving agricultural industries, Alberta has much more to offer. Alberta is an enormous province that’s full of unique and exciting attractions, ranging from the gorgeous Lake Lousie to the jaw-dropping West Edmonton Mall.
The easiest way to experience all of Alberta’s attractions is via car. That being said, if you plan on driving anywhere, you need to have car insurance. Car insurance is legally required in the province of Alberta, so anyone who intends to operate a vehicle needs to obtain a policy.
This begs the questions — “how much is car insurance in Alberta?” and “what affects car insurance rates in Alberta?’.
We answer both of these questions, and more, in the following paragraphs.
What is car insurance in Alberta?
Simply put, car insurance financially protects drivers from a wide array of risks. The covered risks depend on the type of car insurance that you have.
For instance, the most basic form of car insurance, third-party liability coverage, financially covers drivers if they are deemed “at fault” for a collision that results in the injury/death of another motorist or bystander and/or the damage of third-party property.
There are a variety of other forms of optional car insurance that drivers can use to protect themselves from other risks. A typical example is comprehensive coverage.
Unlike third-party liability insurance, comprehensive coverage safeguards policyholders from events that generally occur off of the road, like theft, vandalism or damage related to falling objects.
Some other common car insurance endorsements include:
- Ticket forgiveness and accident forgiveness
- Disappearing deductible
- Depreciation coverage
Speak with your Surex insurance advisor to learn more about the car insurance add-ons that your provider offers.
What’s the average car insurance cost Alberta drivers pay?
As of 2019, the average car insurance Alberta cost was approximately $1,316 per year.
This equates to an average of roughly $109.66 for Alberta car insurance monthly payments.
This puts Alberta near the top of the provincial insurance rates list, sitting behind Ontario and British Columbia (averaging out to $1,528 and $1,832, respectively).
Alberta used to have a 5% annual cap on car insurance rate increases; however, in 2019, the UCP government decided to make some changes. Nowadays, there is no cap on car insurance rate increases in Alberta.
That being said, car insurance companies in Alberta are still required to go through the rate board before finalizing any changes.
Now you know the answer to the question, “how much is car insurance in Alberta per month and per year?”.
How much is car insurance in Alberta for new drivers and inexperienced motorists?
Unfortunately, we can’t provide you with a precise number, but we can say that new drivers tend to pay more for coverage, especially if they are under the age of 24.
Inexperienced drivers tend to pay more for car insurance due to the fact that they haven’t had the opportunity to prove their driving skills to their insurance carrier sufficiently. Because of this, most insurance carriers classify new and young drivers as a higher risk than a motorist with several years of experience.
Most young drivers will see a gradual decrease in their car insurance rates after reaching the age of 24. Additionally, inexperienced drivers can work on their rates by driving safely and going for several years without making a claim.
What variables influence car insurance rates in Alberta?
Even though the average rate for car insurance in Alberta is approximately $1,312, not all drivers pay this amount. Some drivers pay more for convergence, while other drivers pay less. This is because a wide variety of personal variables heavily influence your car insurance rates.
There are so many variables that influence car insurance rates that it’s nearly impossible to list them all! So, we’ve condensed the list into some key takeaway factors:
Level and type of coverage
Drivers with higher levels of car insurance coverage and a variety of endorsements will most likely pay more than drivers who opt for the provincial minimum. That being said, the driver that has more coverage has more financial protection than the driver with the minimum level of coverage.
Amount of driving experience and driving history
As mentioned earlier, your level of experience and driving history play a large role in determining your car insurance rates. Drivers that have decades worth of experience tend to pay less for coverage than a policyholder that has only been driving for a handful of years. Drivers can save even more by staying claims-free and taking advantage of useful incentives, discounts and bundles. New drivers may qualify for a car insurance discount by taking a drivers training course.
The town or city that you live in can affect how much you pay for car insurance. Each town and city has its own set of risks. Some towns and cities have high collision rates, while others have above-average rates of vehicle theft. Insurance companies take these factors into consideration while determining a policyholder’s car insurance rates in Alberta.
Check out this blog if you’d like to learn the truth about ten common myths that supposedly affect your car insurance rates.
Want to save on car insurance in Alberta? Compare quotes with Surex!
Even though it may not top the provincial car insurance rate list, car insurance in Alberta is expensive!
If you’re tired of overpaying for coverage and are re-shopping your car insurance policy, you should start your search by chatting with your Surex insurance advisor.
At Surex, we work side-by-side with Alberta’s top car insurance companies in order to provide you with high-quality quotes with competitive rates. Our team of advisors has the know-how and skill sets to provide policyholders with a fantastic experience from start to finish.
Contact one of our team members today to receive up to ten car insurance quotes in ten minutes or less (the number of potential quotes varies by location).
While you’re chatting with one of our advisors, don’t forget to ask about the benefits of bundling your insurance policies with one of our partners (here’s a hint — you can save up to 25%!).