Cheap Alberta Car Insurance Quotes

Are car insurance prices regulated in Alberta?

Alberta has a private auto insurance system that is subject to some regulation. In basic terms, it means drivers buy their coverage from insurance companies, which compete for business, and there are government-imposed rules that dictate how insurance companies can conduct business in the province.

A provincial body, the Automobile Insurance Rate Board (AIRB), establishes guidelines on how insurance companies can rate consumers. Insurance ratings determine how much the company charges a driver for coverage.

AIRB also enforces price caps. The Grid system outlines the most and least an insurance company can charge for basic car insurance. Basic coverage includes third-party liability, accident benefits, and direct compensation property damage. Insurance companies can set prices for optional coverage as they see fit.

What is the Grid system and how does it work?

The Grid outlines the maximum amount drivers motorists can pay for insurance. As a driver, your rates will go up or down depending on many factors. But they can never exceed the maximum premium outlined on the Grid for a driver with your record.

You can see where you fall on the spectrum by using the Grid rate calculator from AIRB.

Insurers must compare the base premium determined by the grid to the policyholder’s quoted premium and charge the lesser of the two. Only a few Albertans end up paying the Grid rate.

What are the standard policy limits in Alberta? 

Your insurance policy will help pay your bills in the aftermath of an accident. But how much can you expect to receive? Before you sign a contract, make sure you know the amount you'll be entitled to. This sum is otherwise known as your policy limit. Insurance policy limits tell you the maximum amount your insurer will pay you if your claim is approved. Each section of your policy will have its own limit. You can increase your limits beyond the standard amounts at extra cost. Here are the limits for a basic auto insurance policy in Alberta.

Mandatory minimum third-party liability: 

$50,000 per person per accident with a limit of two years from the date of the accident. For chiropractic care, massage therapy and acupuncture, the limits are $750, $250 and $250, respectively.

Direct property compensation damage:  

No limit.

Medical payments: 

$50,000 per person per accident with a limit of two years. For chiropractic care, massage therapy and acupuncture, the limits are $750, $250 and $250, respectively.

Funeral expense benefits: 

$5,000 per person.

Disability income benefits: 

If you’re employed at the time of the accident, you can receive 80% of your gross weekly earnings (maximum $600 per week), for up to 104 weeks. For an unemployed adult, the benefit is $200 per week, for up to 104 weeks.

Death benefits: 

For a head of household, $10,000 is available plus $2,000 to each surviving dependent after the first survivor, plus $15,000 for the first survivor and $4,000 for each remaining survivor; $15,000 for the death of the spouse of the head of the household and up to $500 for family grief counselling.

Right to sue for pain and suffering? 

Yes, but rewards are limited for cases that don’t involve serious impairment.

Right to sue for economic loss in excess of no-fault benefits? 

Yes.

How much does car insurance cost in Alberta?

The average cost of car insurance in Alberta is $1,514, according to 2020 data from the Insurance Bureau of Canada (IBC).

However, a 35-year-old Alberta man can expect to pay $1,991 a year for car insurance, according to RATESDOTCA data from late 2021.

That's an increase of 35%. Why the difference? The IBC collects premiums from all age groups, whereas RATESDOTCA data can filter out older drivers who bring the average down.

We use age 35 as a benchmark, a milestone in the insurance world. At this age, the differences in rates offered to men and women narrow by a significant degree. It's also close to the average age of Alberta, which is 39, according to the 2021 census.

The average savings for Alberta drivers who compared auto insurance quotes on RATESDOTCA is $736 in 2021. We found the savings by comparing the highest and lowest quotes offered.

Find your own personal savings rate by comparing insurance quotes. It's the best way to find out how much you'll pay.

What are the Alberta cities with the cheapest and most expensive car insurance premiums?

Two communities are currently tied for the cheapest car insurance rates in Alberta: Red Deer and Sylvan Lake. They sit roughly 25 kilometers apart from each other in central Alberta and are also equidistant from Calgary in the south and Edmonton in the north. The average rate for a claim and conviction-free adult in both places was $1,712 per year in late 2021. That’s 14% less than the provincial average for drivers of the same age.

The city with the highest premiums was Calgary. The average rate for Calgarians fitting our driver profile was $2,230, 12% higher than the provincial average. No surprise there — theft and collisions are more common in cities, and both result in claims that insurance companies must pay.

Edmonton, the capital city, lays claim to the second-highest premiums. Drivers aged 35 pay roughly $2,124 per year, 7% more than the provincial average but about 5% less than Calgarians. Interestingly, the premium difference corresponds with the difference in population size: Edmonton has approximately 4% fewer residents than Calgary.

10 tips to get cheap car insurance in Alberta

Saving on Alberta auto insurance is easier than you think. Follow these 10 tips to secure the best deal:

#1 - Get winter tires

The province does not require that vehicles be equipped with winter tires during the winter months, but Alberta’s transportation authority recommends them. Insurance companies consider them a key safety feature, so having winter tires usually gets you a discount.

#2 - Install an anti-theft device

Alberta records more annual car thefts than any other province. Even if you live in a quiet and safe area, an anti-theft device like a car alarm or GPS tracker will show insurance companies that you are taking all necessary precautions.

#3 - Bundle auto with home insurance

Insurance companies offer reduced rates if you use the same provider for multiple policies. In Alberta, home and auto are the most commonly bundled insurance products.

#4 - Insure all vehicles under one policy

If you have more than one car, insuring them all under one policy can save you as much as 20%.

#5 - Take a driver’s education course

If you are an inexperienced driver, a sensible way to save on car insurance is to take an accredited driver’s training program.

#6 - Increase your deductible

Increase your deductible by $1,000 in exchange for lower insurance rates. Just make sure you can afford it in the event of a claim.

#7 - Drive less

Many Albertans rely on their cars for their daily commute, but from an insurance perspective, less time spent driving means less chance of an accident. If you have the option of cycling, walking or taking transit to work each day, you could save a lot on your car insurance policy.

#8 - Pay premiums annually

Ask your insurance provider if you can pay your entire premium up front, rather than smaller monthly payments. Many companies offer a reduced rate for this as it cuts down on their administrative costs.

#9 - Consider usage-based insurance

A usage-based insurance (UBI) or telematics device is one way of dramatically lowering your annual premium. An app on your phone monitors when you drive, how far you travel, your average speed and braking habits.

Your premium cannot be increased for risky behaviour, but discounts of up to 30% are available for individuals who demonstrate good, safe driving. UBI has been available in Alberta since 2016, but not all insurance companies offer it yet.

#10 - Shop around

The best way to find cheap auto insurance in Alberta is to compare car insurance quotes from several providers. Thanks to websites like RATESDOTCA, the days of leafing through the phone book and calling around different companies are gone.

Simply spend a few minutes answering our questionnaire, and we will show you multiple rates from Alberta’s top car insurance providers, all in one place.