Alberta car insurance calculator
Calculate and compare Alberta auto insurance quotes in minutes
Why use a car insurance calculator?
If you're a driver in Alberta, your monthly car insurance bill is an recurring cost that should not be overlooked. Just like keeping an eye on gas prices and car loan interest rates, it's important to find the best car insurance rates possible available to you. But with no standard rate for car insurance, it can be difficult to know what you should be paying.
To make this process easier, consider using a car insurance calculator. By using InsuranceHotline.com’s car insurance calculator, you can quickly and easily compare quotes from over 50 car insurance providers in Alberta. This can help you find the lowest rates available, ensuring that you're not overpaying for coverage.
Not only does InsuranceHotline.com’s car insurance calculator help you find the best rates, but it also allows you to apply discounts to your quote, maximizing your savings. When generating your estimate, the calculator considers various rating factors such as your address, driving distance, driving record, insurance history, and the insurance company's claims policy.
Calculate and compare Alberta car insurance quotes
Car insurance is mandatory in Alberta and the province requires that all drivers carry a minimum amount of third-party liability insurance coverage. This coverage provides protection for damages or injuries that you may cause to others in an accident. It is important to have car insurance not only because it is legally required, but also because it can provide financial protection in the event of an accident or theft of your vehicle. Car insurance can cover the costs of repairing or replacing your vehicle, as well as medical expenses or legal fees that may arise from an accident. Additionally, having car insurance can give you peace of mind knowing that you are financially protected in the event of an unexpected event on the road.
Grid rating system
The Automobile Insurance Rate Board (AIRB) in Alberta uses something called a Grid Rating system to determine auto insurance premiums. The system sets premiums based on a combination of factors, including the driver's location, age, gender, driving experience, driving record, and the type of vehicle they drive.
The AIRB assigns each driver to one of five grid levels based on their risk level. Grid level 1 represents the lowest risk, while grid level 5 represents the highest risk. A driver's grid level is determined by the number of demerit points they have on their driving record, as well as any at-fault accidents they have been involved in.
The grid level determines the base premium for the driver's insurance policy, which is then adjusted based on other factors, such as the driver's age, gender, and driving experience. Insurance companies must use the grid system when setting their rates, and the rates they charge cannot exceed the maximum rates set by the AIRB.
The grid rating system is intended to ensure that insurance rates are fair and transparent, and that drivers with similar risk profiles pay similar premiums. By setting rates based on objective factors like driving record and demerit points, the system aims to provide more affordable and accessible insurance coverage for all drivers in Alberta.
How insurers calculate auto insurance rates in Alberta
1) Postal Code: Before we can give you an estimate, we need to know a few details about the neighbourhood you live in. A driver from an urban area would end up paying a higher premium compared to a driver from a rural area. This is because the insurance company looks at crime rate, accident claims, among other factors of drivers in a neighbourhood and base their quote on that.
2) Tell us about your car: Be ready with your car's model, make, and year. We’ll also need to know where you park your car overnight (like in a private garage, driveway, shared garage, or the street). We also need an estimate of how many kilometres you drive each day. Our quoter will automatically estimate how many kilometres you drive each year. Lastly, let us know if you want comprehensive or collision added to your policy.
3) Share driver’s details with us: Next, we need to ask about who will be driving the car. You can also add additional people who are going to be driving. Be ready with birth dates if you're adding more than one driver. You’ll also need to provide information about your licence (what class you currently hold, when you were first licensed). Lastly, we need to know your insurance history (whether you've had any cancellations, suspensions, or convictions)
4) Apply for discounts: We can talk discounts now that we have key information about the driver(s) and the car. It’s your chance to indicate whether you’re interested in the following:
- Bundling car and home insurance.
- Using a telematics device.
- AMA members can save an additional 20%.
5) See your quotes: Explore car insurance rates and choose the one that fits your needs. We’ll connect you with the car insurance provider and help you secure your quote.
| Cheapest Rate | $2,019 |
| Average Rate | $4,718 |
| Savings: $2,699 (57%) | |
| Cheapest Rate | $3,191 |
| Average Rate | $5,496 |
| Savings: $2,305 (42%) | |
| Cheapest Rate | $2,901 |
| Average Rate | $4,198 |
| Savings: $1,297 (31%) | |
What factors affect your Alberta car insurance premium?
- Driving and insurance records: A driver’s history and insurance record have a big impact on insurance premium. An insurance company will look out for how likely a driver is to file a claim in the future. To determine that, they consider several factors such as the number of years you've had your driver license, whether you have any traffic convictions (think speeding tickets, not parking tickets), the number of accidents you've been in and how many you've been at fault for, past claims, among other. An insurance company would offer discounts if a driver has invested in a training from an accredited driving school.
- Neighbourhood: Urban city drivers are likely to have higher premiums than those in a rural area. Car theft isn't as frequent outside major cities, nor are collisions. But insurance companies don't stop at the level of city or town. They base your rate on your forward sortation area (the first three letters of your postal code that denotes geographical boundaries).
- Age and gender: Your age and gender are important factors that insurance companies consider. According to statistical data, men have a higher incidence of road accidents and are more likely to receive driving citations compared to women. As a result, insurers take these factors into account when determining premiums.
- The type of vehicle: Car insurance premiums are determined in part by the make, model, and year of your vehicle. Insurance companies require this information to estimate the potential repair or replacement costs of your car. Customers who own cars with exceptional safety and handling features may qualify for favorable rates. Additionally, if your car is less prone to theft, your premium may be further reduced.
- Vehicle usage: Insurance companies are also interested in the distance you travel each day. If you have a lengthy commute, you'll likely pay a higher premium. Insurers may offer you commuter coverage if you frequently travel long distances to work. This type of coverage costs more than coverage for vehicles used occasionally, which are referred to as "pleasure use" cars. To qualify for pleasure-use rates, you must drive below a specific amount each year, which varies depending on the insurer.
- The business environment. According to insurance companies, the expenses of conducting business in Alberta are on the rise, leading to an increase in premiums. Car insurance providers attribute this rise in rates to several factors, such as the escalating costs of medical treatment, a rise in severe injuries, insurance fraud, and an increase in car theft in Alberta. Moreover, the car insurance industry is also witnessing the effects of climate change, with claims for damages caused by hail, flooding, and wildfires on the rise in Alberta.
- Politics: When consumers complain about the price of insurance, governments tend to get involved. For example, in 2017, the Alberta government imposed a cap on premium increases. The province let it expire in 2019 and started an inquiry into the regulatory system. In 2022, Bill 41 went into effect. It aims to streamline the claims process and limit an injured person's ability to sue for damages. The changes brought Alberta's regulatory system in line with other provinces.
