What Is the Average Cost of Car Insurance in Alberta?

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    Alberta’s auto insurance system imposes certain rules and regulations to protect buyers’ interests. The government-imposed rules regulate the working of insurance companies and the way they conduct business.

    The guidelines are established by the Automobile Insurance Rate Board – the Canadian provincial body that dictates how insurance agencies can rate consumers. The rules and regulations set by AIRB determine the quotes for car insurance in Alberta. Visit Surex, a renowned insurance brokerage, for competitive insurance quotes.

    Standard insurance policy limits in Alberta 

    A car insurance policy helps clear the bills if, in an unfortunate incident, the vehicle meets an accident. But things may turn upside down if you don’t know what amount of insurance claim you are entitled to. 

    This amount is termed the insurance policy limit. It is the maximum that the insurer pays on approval of the claim. The cost of car insurance in Alberta varies according to the policy and its limit. Insurance limits can be increased beyond the standard but at an extra cost.

    Alberta Policy limits for car insurance

    Mandatory third-party liability

     

    $50,000 per accident per person. Individuals can claim the amount within 24 months from the accident date.

    Limits for 

    • Chiropractic care – $750
    • Massage therapy – $250  
    • Acupuncture – $250
    Medical payments

     

    $50,000 per accident per person. Individuals can claim the amount within 24 months from the accident date.

    Limits for:

    • Chiropractic care – $750
    • Massage therapy – $250  
    • Acupuncture – $250
    Direct property compensation damage charges

     

    No limit
    Disability income benefits

     

    For employed adult:

    The claimant will receive 80% of their weekly earnings up to 104 weeks (around $600 per week).

    For an unemployed adult:

    The claimant will receive $200 weekly for up to 104 weeks.

     

    Funeral expense benefits

     

    $5,000 for an individual

     

    Death benefits

     

    For the death of the head of household –

    • $10,000 + $2,000 per surviving dependent in addition to the first survivor
    • The first survivor gets benefits up to $15,000 + $4,000 for every remaining survivor

    For the household’s head spouse death –

    • Household’s head spouse death gets benefits up to $15,000 + $500 as family grief counselling expenses.

     

    Cost of car insurance in Alberta – A detailed overview

    As per the Insurance Bureau of Canada, the average cost of car insurance coverage is $1,316 annually. It’s a rough estimate calculated based on the total collection of insurance premiums in the province, and the count is divided by the total number of insured personal vehicles.

    The average is on par with the value of the minimum insurance coverage level. You’ll end up paying more if comprehensive or collision coverage is added to the policy. The insurance cost also increases by adding special endorsements such as new vehicle depreciation protection, first claim forgiveness, etc.

    Besides, there is a fluctuation in rates depending on personal factors such as age, gender, driving experience, address, car type, and claims history. For example, females generally get an exception due to the gender factor, and they pay comparatively less. Also, drivers with over five years of experience end up paying less than new drivers. Similarly, individuals living in the countryside have to bear a comparatively low insurance cost.

    Factors that impact the cost of car insurance in Alberta

    Here are some factors that impact insurance costs in Alberta.

    Location

    Insurance premiums are likely higher for individuals living and driving in a city. Though car theft and collisions are rare in major cities, insurance agencies continue categorizing the rates at the town or city level. Their base rate is decided according to the forward sortation area.

    Driving experience

    Driving experience helps insurance companies determine the number of active driving years of an individual. The individual’s driving record significantly impacts their eligibility for insurance rates. Premiums for new drivers are comparatively expensive. 

    High experience and zero traffic infractions are the ideal qualifying factors for safe driving. Drivers with these traits can easily reap the benefits of low-premium options.

    Vehicle type 

    A part of the insurance premium is based on the car’s model, manufacturing year, and make. They determine the amount it may cost to replace or repair the car. Insurers lower Alberta car insurance costs for customers who have cars with solid handling and safety features.

    Insurance claims history 

    Your count of insurance claims is another important factor that impacts insurance premium cost. Insurance companies estimate how likely the applicant will file a claim based on the following factors –

    • Traffic convictions of the individual, not including parking tickets, speeding tickets, etc.
    • The insurance claim count made by the applicant in the past
    • Gaps in the insurance history

    People who make too many claims in a specific period are assessed as risky clients. Naturally, the premium is higher for them. This is why most drivers avoid making any claims for inexpensive repairs like door dings.

    Keep in mind that, big or small, every claim you make raises the insurance cost, whether or not you are at fault. Also, the policy depends on the claims frequency the policyholder can make annually without any premium increase.

    Speeding ticket 

    Speeding tickets have a severe impact on the individual’s car insurance costs. The higher the number of on-record violations, the more it will influence your insurance premiums. If the traffic violations feature in your records for more than three years, they’ll impact your insurance rate for that period or even longer. On the safer side, focus on safe and regulated driving. You can also opt for a motor training driving course. Such certifications will help you earn discounts with most insurers.

    What is the average cost of car insurance in Alberta? — Endnote

    The average cost of car insurance in Alberta is comparatively high compared to other provinces in Canada. Researching the deals offered by different lenders in your city is essential to find the best insurance deal at a fair price. Learn how car insurance works. The bottom line is exploring as many options as possible before signing up for the deal with an insurance firm. It’ll help you save more on auto insurance deals and find an ideal option that suits your requirements. 

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