What is the Best Car Insurance in Alberta for 2023?

Car insurance rates are on the rise in Alberta. Did you know that the average car insurance premium in Alberta increased by 26% between 2017 and 2022?

This alarming stat from the Alberta Automobile Insurance Rate Board reinforces the importance of comparing to get the best insurance rates. 

This guide takes a dive into how car insurance works in Alberta, what coverage is required and how you can save when it is time to renew your policy. Let's dive in!

Compare Alberta Car Insurance Quotes

Start saving today

How does car insurance work in Alberta?

Alberta requires drivers to hold a minimum mandatory car insurance. Auto insurance is purchased entirely on the private market but is regulated by the Alberta Automobile Insurance Rate Board (AIRB). The AIRB regulates car insurance rates and enforces the All Comers Rule, which requires insurers to offer mandatory coverage to all drivers in Alberta.

Car insurance policies break down into the mandatory, optional and endorsement categories. Let's take a look at how each type works further below.

Quickly compare Alberta's best car insurance companies and get a personalized quote:

What is the mandatory car insurance coverage in Alberta?

Mandatory coverage primarily covers medical needs and a driver’s liability if they collide with another vehicle, pedestrian or property:

Mandatory car insurance in Alberta	What it covers
Liability insurance	Injury to others and property damage
Accident benefits	Medical expenses for drivers, passengers and pedestrians Income replacement for missed work after an automobile accident
DCPC insurance	Claims go through your own decision without waiting for other the driver's insurance

In Alberta, the minimum mandatory car insurance amount is $200,000 in third-party liability coverage and accident benefits. As of 2022, policyholders must also have Direct Compensation for Property Damage (DPCD) coverage. This is true for both private and commercial vehicles. Most drivers choose to buy more than the minimum required coverage. It's a smart thing to do. Collisions are expensive and additional insurance is relatively cheap.

Did you know that Alberta leads Canada in car thefts? The AIRB reports that for every 250 vehicles, one is stolen each year in the province. Protect yourself with comprehensive coverage or a specified peril theft insurance option.

What are the optional car insurance coverages in Alberta?

Car insurance companies also offer optional coverage. These common options offer greater protection for a driver’s own vehicle and finances:

Optional car insurance in Alberta	What it covers
Collision or upset	A policyholder's vehicle hits an object or another vehicle
Specified perils	Specifically selected risks or perils like theft, vandalism and types of weather damage (flood, hail, wind, fire, etc)
Comprehensive	Comprehensive car insurance covers all perils and collision or upset insurance.

Finally, endorsements are additional optional coverages. Options depend from company to company. They add to your monthly bill but add some interesting protection. Endorsements are add-ons like:

• Accident forgiveness: your premiums won't raise after your first at-fault accident.
• Waiver of depreciation: a reimbursement for the price you paid for a vehicle, not its depreciated price.
• Family protection: this covers additional costs if you're in a hit-and-run or collision with an under-insured vehicle.
• Loss of vehicle use coverage: pays for a rental vehicle if your car is temporarily unavailable following a claim.
• Rate increase protection: your rates won't go up if you commit a minor traffic violation.
• Comprehensive Cover Limited Glass: get a reduced premium for waving some coverage to your car’s windshield.

Optional coverage and endorsement are right for many drivers, but not everyone. It depends on one’s financial situation, risk tolerance and the vehicle's value. A car insurance broker or agent can help you balance the additional protection of endorsements and a comfortable insurance premium.

What are the cheapest car insurance companies in Alberta?

No single insurer in Alberta can claim to offer the cheapest car insurance. The province has 45 different insurers! Providers determine insurance rates by looking at a driver’s driving history, profile, their vehicle’s make and the AIRB’s Grid Rate system. This means that there is a maximum price you can pay for mandatory coverage. AIRB does not set a minimum price.

Not sure where to get started? Here are Alberta's top car insurers by market share:

Car insurance companies in Alberta	Percentage of Alberta's market
TD Insurance Group	18%
Wawanesa Mutual Insurance Company	15%
Desjardins General Insurance Group	9%
The Co-operators Insurance Group	8%
Aviva Canada Inc. Insurance Group	7%
Allstate Canada Insurance Group	5%
Alberta Motor Association Insurance Company	4%
The Economical Insurance Group	4%
Travelers Insurance Group	2%

How to get car insurance quotes in Alberta?

There are many options for car insurance companies in Alberta. Drivers in Alberta can get a quote through car insurance brokers, agents or directly from an insurer. When you request a car insurance quote, you will need:

• The vehicle’s make and model
• Your VIN (vehicle identification number)
• Your Social Insurance Number
• Driver’s license
• Your previous insurance (if any)

When purchasing insurance it is important to compare because companies sometimes give very different rates. You should consider if you want to add collision or upset and comprehensive coverage in addition to the mandatory insurance. Beyond that, there are many endorsements to enhance your car insurance policy. If you have a new vehicle you might like a waiver of depreciation which reimburses you for the purchase value of your new vehicle if it is declared a total loss in the first 24 months you have it.

Try our comparing tool to get an online quote and the best car insurance rates in Alberta:

Can you get temporary car insurance in Alberta?

A temporary car insurance is a solution for drivers who need insurance for less than the classic one-year car insurance contract. This type of policy can last for days, weeks, or even a few months, and is most often needed for Canadians wanting to go on a trip.

• However, Alberta does not offer car insurance for any less than six months long contracts.

How much is car insurance in Alberta?

The average car insurance premium in Alberta was $1,514 in 2020. That works out to $126 per month. It is less than Ontario's car insurance or British Columbia's, but still higher than in many provinces, particularly, Quebec's car insurance.

A few factors drive up the average cost of car insurance in Alberta. The most notable of these are:

• Significantly increased claims for catastrophic loss due to severe weather. Climate change means more significant weather events and more damage to vehicles.

• A doubling of the average claim for bodily injury from $40,720 in 2011 to 77,983 in 2020. This was caused by increased legal representation and larger claims settlements.

• More expensive vehicles. As vehicle prices rise, and as they incorporate more expensive-to-replace safety features and technology, they cost more to replace when something does go wrong.

Alberta’s AIRB sets the maximum car insurance rates using its grid rate calculator:

Insurance premiums in Alberta are calculated according to the following six factors:

• The amount of third-party liability coverage (up to $2 million)
• Your location
• How long you have had your driver’s license
• At-fault claims in the previous 6 years
• Driving convictions
• License suspensions or cancellations in the previous 15 years

Let's see how this works in practice:

Here’s a second example:

Want some more information? This PDF can help you get started:

How to get cheaper car insurance in Alberta?

Want to lower your car insurance premiums in Alberta? Here are a few ways to do it:

• Ask about discounts: Most insurers offer cheaper rates for being a university alumnus or working for a specific company.

• Choose a higher deductible: While a $500 deductible sounds better than one that's $1,000, it is not always the case. You can come out ahead with the higher deductible. Monthly premium savings quickly make up the difference.

• Park in a garage: Parking inside puts your car at less risk for theft and weather damage.

• Install approved security features: Reducing your risk can help lower your premiums.

• Maintain a good driving record: Demerit points, convictions and at-fault claims will drive up your insurance premiums for years.

• Install a telematics app: Downloading your insurer's phone app can save you 10% immediately and more down the line. It records how hard you brake and accelerate and how fast your drive to determine premiums.

• Pay in full: Earn a discount by paying annually instead of the classic car insurance monthly payments.

• Bundle home and auto insurance: Add a car and home insurance bundle or multiple vehicles under the same household to save.

Finally, the most important thing that you can do to get cheaper car insurance is to compare rates from multiple insurers. Get started today.

Compare Alberta Car Insurance Quotes

Start saving today

New car insurance: what is the grace perimod in Alberta?

An car insurance grace period is the amount of time you have between the subscrition of your car insurance and your first payment without risking cancellation for failure to pay. This grace period varies a lot from one Canadian region to another.

• The province of Alberta has a 14-day grace period for car insurance.

How much is car insurance for a new driver in Alberta?

Unfortunately, new and young drivers in Alberta pay more. Overall they are riskier to cover than drivers with a long and clean driving record.

A driver who just received their class 5 Alberta driver’s license and is purchasing insurance for the first time scores a zero on the Grid system. Here are the maximums that they could expect to pay. Over time they may move up the grid if they commit infractions or move down for years of safe driving and see their rates fall.

These are the prices for mandatory coverage. With optional coverage and endorsements, the average cost would be higher:

Area	Completed Driver Training	Grid Score	Max Premium ($200,000 third-party liability coverage)	Max Premium ($2 million third-party liability coverage)
Calgary		0	$2,080	$2,667
Calgary		-2	$1,872	$2,400
Edmonton		0	$2,080	$2,667
Edmonton		-2	$1,872	$2,400
Rest of Alberta		0	$1,486	$1,905
Rest of Alberta		-2	$1,337	$1,715
North of Alberta		0	$1,412	$1,810
North of Alberta		-2	$1,271	$1,629

It's easy to find a recognized driving course near you using the PDF below whether you're in Red Deer, Lethbridge, Banff or somewhere else:

How to cancel car insurance in Alberta?

Did you find a cheaper rate? Sell your car? Have a bad experience with customer service? Sometimes you need to cancel your existing policy. It’s not hard to do in Alberta.

Car insurance usually runs for a year, but you can cancel it earlier. Doing so incurs a termination fee, so weigh the cost savings against it. Most policyholders wait until their current policy is expiring to switch to avoid the additional fee.

You need to contact your existing insurer directly to cancel. Your insurer may ask for your policy number and new insurance info.

Who can drive my car under my insurance in Alberta?

Car insurance in Canada covers a vehicle, not a single driver. This means that you may temporarily lend your car to your brother who flew in for a visit. There is one caveat. It will affect your car insurance rates if the person borrowing your vehicle commits an infraction or gets in an accident. Only lend your car to someone that you trust.

The person borrowing your car needs to be licensed and have your oral or written permission. Your insurance will not cover the if they operate the vehicle while under the influence of drugs or alcohol or while committing an illegal act.