Car Insurance Calgary: All you need to know in 2024

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Alexandre Desoutter updated on 15 April 2024

Car insurance in Calgary is mandatory, just like in the rest of Canada. Just to get a new license plate in the city, you must show proof of insurance.

But what is the mandatory car insurance coverage in Alberta? How do you get cheap car insurance Calgary plans? Read on!

This guide will tell you everything you need to know about car insurance in Calgary: what it covers, tips to save money, cheap car insurance for new drivers, where to get free online car insurance quotes in Calgary and the best car insurance plans.

Car Insurance Calgary: Key Takeaways

  1. Minimum mandatory insurance includes accident benefits & third-party liability coverage of at least $200,000.
  2. Average Premium is typically around $1,500 annually or $125 per month.
  3. Premiums are capped by the Alberta Automobile Insurance Rate Board based on driving history.
  4. Opt for comprehensive or specified perils insurance to protect against common risks like hail.
  5. Compare quotes and use bundling discounts to get cheap car insurance Calgary plans

Car Insurance Calgary: How does it work?

In Calgary, from the moment you own a vehicle, you must insure it through a private Alberta car insurance provider. Alberta’s auto insurance system is private, which means drivers purchase their policies from private companies and not from a Crown company. In some provinces, Crown corporations are the only providers of car insurance.

Auto insurance and car insurance rates in Calgary are regulated by the provincial government. So, if you get into an accident, Calgary car insurance companies must at least pay to repair or replace your car, pay for your medical care and compensate for any injuries or damages the accident caused, regardless of who’s at fault.

The Alberta Automobile Insurance Rate Board (AIRB) independently regulates auto insurance ratings across Alberta. They use a grid that establishes a maximum of how much companies can charge drivers for coverage. The better your driving history, the lower you will be on the grid and the less you will pay for the same coverage.

Car insurance rates and coverage vary from one province to another. You can get personalized quotes using our free HelloSafe tool below based on your province, vehicle, and your unique needs.

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What does car insurance Calgary cover?

In Calgary, basic automobile insurance (accident benefits and third-party liability) is required by law. This covers:

Accident benefits coverage

  • If you are injured in an accident regardless of who is at fault
  • Medical staff involved in the accident: medical care, rehabilitation and auxiliary care services
  • Income replacement
  • Funeral expenses
  • Surviving spouses and dependents

Third-party liability

  • Material damage and bodily injury caused to others by your fault
  • Legal fees and damages that derive from the accident

Expert advice

The minimum mandatory amount of third-party liability coverage is $200,000. However, insurance experts recommend that you increase your coverage to at least $1 million to stay protected.

Common add-ons to mandatory coverage

  • Collision car insurance: This auto insurance protects you in the event of a collision of your vehicle with an object. This insurance covers property damage caused by this accident. For example, if you hit a traffic sign, you will be covered by collision insurance.
  • Comprehensive car insurance: This option protects you from anything that is not a collision. It covers vandalism, glass breakage, theft, and bad weather. If you park your vehicle on the street and when you come back, one of the windows has been broken, this option will keep you protected.
  • Specified Perils auto insurance: It covers you for risks that you have specified in the contract. For example, you can mention glass breakage but not include vandalism, or theft but not fire. If you’re looking for cheap car insurance in Calgary, this option might be worth considering.
  • All-risk car insurance: This insurance is a combination of all other coverages for maximum protection. The deductible is the same for all damages. You will thus be protected for all incidents beyond your control, such as vandalism, but also for incidents resulting from a road accident, collision with an object or flipping your vehicle. If you want to know how deductibles work, check out our complete guide on car insurance deductibles in Canada.

Watch out!

Calgary is inside Alberta's Hailstorm Alley, meaning that it’s hit by bad summer storms with hail causing millions of dollars in damage to vehicles each year. Comprehensive insurance or specified perils insurance will keep you protected from hail.

How much is car insurance in Calgary?

The average car insurance Calgary plan is about $1,500 yearly ($125 per month). However, the price varies depending on multiple elements. However, two main factors determine how much you pay: you and your car.

After insurance companies define a base premium that covers claims, bills and profit, they calculate the amount of risk you carry as a driver based on your training as a driver, the number of years you’ve had your license, how many accidents and traffic incidents you’ve had and where you live.

Good to know

It won’t be the same car insurance rate if you live in a city or in the countryside. Cities have more vehicles, which means more accidents, and an increased risk of theft and vandalism.

Insurance providers naturally consider your car. More recent cars cost more to repair so insuring them is more expensive. Also, if your car model is easily stolen, your premium will increase.

Expert advice

Cars with more safety features often include many sensors to perceive danger and protect you, but more sensors also mean more potential repairs. The premiums are typically cheaper for older and simpler models.

Car insurance Calgary cost

Here is a car insurance cost estimate in Calgary for a 40-year-old man without any claim history, driving a 2018 Toyota Corolla base model, one of the most common cars in the city, using a leading car insurance provider.

Includes:Basic coverage
$1,000,000 limit
Collision, Theft
and Windshield coverage
All Perils
Car Insurance Calgary Cost

Car insurance premiums vary widely from one province to another. You can use our free tool below to get personalized quotes from Canada's best companies based on your location and unique needs.

Compare Canada's best car insurance plans

Start saving today

How to get car insurance Calgary quotes?

Getting car insurance quotes in Calgary can be straightforward by using the following online comparison sites.

  1. YouSet - A newer player in the insurance market, YouSet offers a digital-first approach, allowing customers to manage their policies entirely online. Their platform provides personalized quotes quickly, emphasizing user-friendly experiences and competitive pricing.
  2. - This platform enables you to compare car insurance rates from multiple insurers in Alberta, helping you find the most affordable coverage that meets your needs.

What is the cheapest car insurance Calgary plan?

Unfortunately, Calgary car insurance rates are the highest in the province and one of the highest in Canada. As Alberta’s largest city, Calgary has higher risks of collision, injury and theft, obliging car insurance companies to increase their premiums to cover the costs. However, here are ways to get cheap Calgary car insurance quotes that suit your needs.

  1. Compare Quotes: Use online comparison tools like HelloSafe, and YouSet to compare quotes from multiple insurers. This can help you find the most competitive rates for the coverage you need.
  2. Bundle Policies: Consider bundling your car insurance with other policies, such as home insurance, through the same provider. Insurers often offer discounts of up to 20% for multiple policies.
  3. Increase Your Deductibles: Opting for higher deductibles can lower your premium costs. However, ensure you can afford the deductible in case of a claim.
  4. Maintain a Clean Driving Record: Safe driving over time can significantly reduce your insurance rates. Avoid infractions and claims to benefit from lower premiums.
  5. Take Advantage of Discounts: Ask insurers about discounts for which you may be eligible. These can include discounts for being a good driver, having a car with safety features, or even being a member of certain professional or alumni associations.

How to get cheap car insurance calgary for new drivers?

Getting cheap car insurance in Calgary for new drivers can be a bit challenging due to their lack of driving history, but there are effective ways to reduce costs. If you're a new driver, you can adapt the following suggestions to lower your insurance premium.

  1. Defensive Driving Courses: Completing a certified defensive driving course can not only make you a safer driver but also qualify you for discounts on your insurance.
  2. Choose a Practical Vehicle: Opt for a car that's cheaper to insure. Typically, vehicles with good safety ratings and a low risk of theft come with lower insurance premiums.
  3. Higher Deductibles: Agree to pay a higher deductible in the event of a claim to lower your monthly premiums. Ensure it’s an amount you can afford if you need to make a claim.
  4. Shop Around: Use online tools like to compare insurance quotes from multiple providers. This helps ensure you're getting the most affordable rate for the coverage you need.
  5. Get good grades: If you're a student, insurance providers offer discounts and lower your premiums over time for having good grades in class.

What is the best car insurance Calgary plan?

The best car insurance plan depends on your unique needs and the coverage you're looking for. However, the following car insurance companies offer some of the best coverage options for drivers in Calgary.

Aviva Car Insurance Calgary

  • 15% discount if your vehicle has an Automatic Emergency Brake system
  • 20% off on multiple-vehicle insurance
  • $0 drop after 5 years of accident-free driving
  • 15% discount if you avoid driving convictions for 3 years

RBC Car Insurance Calgary

  • Multi-car insurance discount
  • Anti-theft system discount
  • RBC car and home insurance bundle
  • Discounts for electric or hybrid vehicles
  • Retiree-friendly rates
  • Winter tires discount

TD Car Insurance Calgary

  • Discount for 2 or more vehicles with TD Insurance
  • Student Discount
  • TD car and home insurance bundle
  • Discounts for electric or hybrid vehicles
  • Retiree-friendly rates
  • Winter tires discount

Desjardins Car Insurance Calgary

  • Free car insurance Calgary quotes online
  • Bundle car and home to save up to 15%
  • Multi-Vehicle discount for two or more cars
  • Personalized premium based on your driving habits and behaviours*

AMA Car Insurance Calgary

  • AMA MyRide app discount
  • Loyalty discount after 4 years
  • AMA member discount
  • Special claims-free rate
  • Free accident forgiveness for home and car insurance bundle

Costco Car Insurance Calgary

  • Get online quotes
  • Buy policies online on
  • Also insure your RV, Boat, ATV, Motorcycle, Motorhome, Snowmobile, Cottage and Rentals
  • Special discounts for Costco members
  • Hassle-free claims with 24*7 customer support

FAQs on car insurance in Calgary

What is the penalty for cancelling or changing insurance in Calgary?

Penalty fees vary from policy to policy. Insurance contracts are annual agreements, and switching car insurance companies is possible, but when you do it matters. Insurance companies use either short-rating or pro-rating when someone cancels a policy.

  • Pro-rated cancellation means the insurance company gives you back all the unused premiums.
  • Short-rated cancellation is when the insurer keeps some of the premiums as a penalty.

Most insurers charge a short-rate fee when you change companies. To avoid this fee, check your policy. Usually, the best time to switch is right before or at the annual renewal. The fee will vary, but if your new insurance provider is giving you a good deal, it might even be worth paying the cancellation fee and changing earlier.

Expert advice

When switching car insurance always make sure you’re covered by your new policy before cancelling your old one.

How do you get classic car insurance in Calgary?

If you have an antique car, a modern collectible or even a vintage (decommissioned) commercial or military vehicle, then you might want to get classic car insurance.

Like all cars in Alberta, classic cars also need basic accident benefits and third-party liability insurance, but classic car insurance is worthwhile because it offers increased value and specific protection.

Classic car insurance for your antique vehicles generally includes:

  • Agreed valuation: Instead of the actual cash value with depreciation and the basic replacement cost, classic car insurance gives your car a previously agreed value.
  • Affordability: Perhaps surprisingly, insurance for antiques is cheaper than for modern cars. Classics aren’t as powerful or technological as modern cars, and they also tend to be used less often.
  • Value" Antiques are usually more beloved than their modern counterparts, and all that time and money invested over countless weekends should be properly protected.

How do you get commercial car insurance in Calgary?

Commercial car insurance is different from personal car insurance. Commercial auto insurance is a type of business insurance designed to cover people and vehicles used in a business context. This can mean anything from driving a taxi or an Uber to providing delivery services or even giving driving lessons.

If you use your vehicle for business purposes, even if it’s also your vehicle, you might need commercial car insurance. That’s why it’s so important that you get an insurance policy that’s adapted to your situation.

You can use our free tool below to get free quotes and the most affordable car insurance Calgary plans for your commercial vehicle.

Protect your business vehicles for less

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Start saving today! Get a free car insurance quote

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Alexandre Desoutter

Alexandre Desoutter has been working as editor-in-chief and head of press relations at HelloSafe since June 2020. A graduate of Sciences Po Grenoble, he worked as a journalist for several years in French media, and continues to collaborate as a as a contributor to several publications.


Looking insurance for car

author-profile-picture Alexandre Desoutter Our expert

Hi Meron,
You can use our car insurance comparator to find the best deal for you.

Have a nice day,
The HelloSafe team

Beant K.

I need car insurance

author-profile-picture Alexandre Desoutter Our expert

Hi Beant,
If you want to find the best car insurance for your situation, you can use our car insurance comparison tool.

Have a nice day,
The HelloSafe Team


What is a good low cost insurance company that I can purchase as a beginner

author-profile-picture Alexandre Desoutter Our expert

I suggest you use our car insurance comparator available on our "Top 10 best car insurance plans in Canada" article.

Have a nice day,
The HelloSafe team