Cheap Alberta Car Insurance Quotes

Compare Alberta car insurance rates and save an average of $727.*

How does Alberta auto insurance work

Every driver in Canada must have car insurance; it's required by law in each province.

Alberta has a private car insurance market, but its rates are regulated by the provincial government’s Grid rating program. This approach, which is unique in Canada, is designed to ensure that the minimum required coverage remains affordable.

The regulator, the Alberta Automobile Insurance Rate Board (AIRB), approves or denies rate increases requested by private insurance companies.

The Grid rating program

AIRB is also the group behind the Grid rating program. First introduced in 2004, the Grid dictates the maximum premium that insurers can charge for basic coverage (i.e. third-party liability, accident benefits and direct compensation property damage). For optional coverage beyond basic, insurance companies set their own rates without intervention from the regulatory board.

Where a driver lands on the Grid is determined by several factors including the number of years they’ve been licensed, any at-fault claims or speeding tickets on their record, and if they’ve completed an approved driver training program.

Drivers move up or down on the Grid as their driving record changes. The lower their Grid Level, the cheaper your insurance rate.

Less experienced drivers generally face the highest premiums, but their basic rates are often capped by Grid. Each at-fault claim moves the driver five steps up the Grid, and this can increase their insurance premium by hundreds to thousands of dollars.

If convicted or found at-fault for an accident, an Alberta might also be hit with surcharges on top of their premium.

A safe and experienced driver can expect to pay less than Grid rates. According to the AIRB, about 94.5% of Alberta drivers pay less than the maximum set out by the Grid program.

An Alberta insurance provider determining a car insurance premium for a driver seeking basic coverage must offer a premium reflected on the grid if it’s cheaper than the premium they would have otherwise quoted.

Mandatory and optional auto insurance coverage in Alberta

There are three mandatory coverages in Alberta.

Every Albertan auto insurance policy must include:

  • Accident benefits – Sometimes called no-fault benefits or Section B benefits, this covers costs associated with:
    • Income replacement up to 80% of weekly earnings (max. $400 per week) for up to two years
    • Medical treatment up to $50,000 per person per accident
    • Funeral expenses of up to $5,000 per person
    • Death benefits of $10,000 for head of household plus $2,000 to each dependent, $15,000 for first survivor and $4,000 for each additional survivor; $10,000 for the death of the spouse of the head of the household
  • Direct Compensation for Property Damage (DCPD) – This coverage, introduced in Alberta at the beginning of 2022, means that the driver’s own insurance company compensates the driver for damages following a collision for which the driver is not at fault. Alberta’s previous system, which was tort-based, required that drivers who were not at-fault to seek compensation from the other driver’s insurance company. This approach tends to be time-consuming and costly.
  • Personal liability and property coverage (PLPD) – Also known as third-party liability, this covers costs associated with lawsuits pertaining to injury, deaths, or damage to property of a third party in which you are responsible. The mandatory minimum policy limit for PLPD is $200,000. According to AIRB, over 98% of Alberta’s drivers opt for additional liability coverage. The most common coverage limits are $500,000, $1 million and $2 million.

Beyond mandatory coverage, Alberta drivers can add coverage, choosing from any of the following policy types:

  • Collision: Covers car replacement or repair costs if your car is damaged in a collision and the policyholder is at fault.
  • Comprehensive: Covers damage by debris, earthquake, explosion, theft, vandalism and weather events.
  • Specified perils: Covers damage from perils specifically named in the Alberta auto insurance policy, such as attempted theft, damage in transport, earthquake, explosions, fire, lightning, riots or windstorm.
  • All-perils: Covers many perils, broadly, has similarities to collision and comprehensive coverage.

Alberta drivers looking for even more protection can also add endorsements to their policies. These add-ons extend coverage in very specific ways. Some of the most common endorsements include:

  • Accident Rating Waiver (SEF 39) - Prevents an Alberta car insurance premium from going up following a collision in which the policyholder is at fault.
  • Family Protection (SEF 44) - Protects drivers in a collision with an underinsured or uninsured driver. Will cover the difference if costs exceed the other driver’s insurance benefit.
  • Legal Liability for Damage to Non-Owned Automobiles (SEF 27) - Extends physical damage coverage to include rental cars. Drivers with this endorsement on their policies don’t need to purchase additional coverage when they rent a car.
  • Limited Glass (SEF 13D) - Reduces the amount of coverage for glass damage in exchange for a lower premium.
  • Limited Waiver of Depreciation (SEF 43R) - Waives depreciation on the repair or replacement of a new vehicle following damage from a covered peril. Is usually applicable to vehicles that are less than two years old.
  • Loss of Use (SEF 20) - Compensation for transportation costs up to a limit when a vehicle is damaged due to a covered peril.
  • Towing and Emergency Services (SEF 35) - Coverage for towing and other emergency service costs when a vehicle is disabled, and the driver doesn’t have roadside assistance.

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How much does car insurance in Alberta cost?

According to the Insurance Bureau of Canada (IBC), Alberta drivers in 2020 paid an average of $1,514 per year.

Unfortunately for Albertans, their car insurance premiums are some of the most expensive in the country, falling just behind Ontario and British Columbia.

Alberta car insurance rates began increasing in 2012 when smartphones became widespread, and drivers started using them behind the wheel. Collisions resulting from this dangerous behaviour led to a surge in claims, causing premiums to rise. In years previous, rates had been declining, but insurers responded to this new threat by upping premiums.

While Alberta continued to see significant car insurance premium increases into 2020 (up 7.68% between 2019 and 2020), Ontario rate increases slowed considerably. Between 2019 and 2020, when the COVID-19 pandemic began, Ontarians paid only 1.35% more expensive premiums. Stabilizing premiums in Ontario were in part due to relief measures that many insurance providers introduced in response to fewer cars being on the road during successive lockdowns.

Year Alberta avg premium Y-o-y change Ontario avg premium Y-o-y change
2020 $1,514.00 7.68% $1,655.00 1.35%
2019 $1,406.00 6.83% $1,633.00 8.79%
2018 $1,316.00 5.2% $1,501.00 4.09%
2017 $1,251.00 3.73% $1,442.00 0.70%
2016 $1,206.00 2.29% $1,432.00 -1.58%
2015 $1,179.00 2.25% $1,455.00 -2.09%
2014 $1,153.00 5.59% $1,486.00 -3.51%
2013 $1,113.00 2.39% $1,540.00 -0.58%
2012 $1,087.00 1.59% $1,549.00 1.11%
2011 $1,070.00 -1.02% $1,532.00 3.44%
2010 $1,081.00 -1.28% $1,481.00 7.79%

2010 - 2020 average auto insurance rates (Alberta Vs Ontario)

Avg premium change from 2010 - 2020 in Alberta
$433.00
Avg premium change from 2010 - 2020 in Ontario
$174.00

Alberta car insurance rates by city

Data available using the RATESDOTCA Auto Insuramap tool reflects that in 2021 a 35-year-old man driving a 2018 Honda Civic with a conviction and claims-free insurance record would have paid the most for coverage in Tsuut’ina, Calgary and Edmonton.

On the other hand, the same driver based in Red Deer and Sylvan Lake would have the cheapest coverage.

While it’s difficult to pinpoint a specific factor that drives up premiums in any province, some of the most significant in Alberta have to do with the volume of auto theft in the province and the volume of collisions.

Here, we reflect the 2021 premiums for drivers in different cities throughout Alberta:

Alberta city Average 2021 premium
TSUUT'INA $2,260
CALGARY $2,230
EDMONTON $2,124
AIRDRIE $2,000
CHESTERMERE $2,000
BLACKFALDS $1,969
ST. ALBERT $1,940
ALCOMDALE $1,849
OLDS $1,849
HINTON $1,849
ALDERSYDE $1,849
TABER $1,849
ALLIANCE $1,849
ABEE $1,849
ATHABASCA $1,849
LLOYDMINSTER $1,849
BANFF $1,849
ALDER FLATS $1,849
ROCKY MOUNTAIN HOUSE $1,849
BARRHEAD $1,849
ALBERTA BEACH $1,849
WHITECOURT $1,849
ADEN $1,849
EDSON $1,849
BONNYVILLE $1,849
HIGH RIVER $1,849
BROOKS $1,849
INNISFAIL $1,849
ACME $1,849
OKOTOKS $1,849
CAMROSE $1,849
PONOKA $1,849
CANMORE $1,849
ROCKY VIEW COUNTY $1,849
VEGREVILLE $1,849
STRATHMORE $1,849
VERMILION $1,849
ACADIA VALLEY $1,849
WESTLOCK $1,849
COLD LAKE $1,849
WAINWRIGHT $1,849
COALDALE $1,849
WETASKIWIN $1,849
COCHRANE $1,849
DRAYTON VALLEY $1,849
SHERWOOD PARK $1,832
FORT MCMURRAY $1,806
BAY TREE $1,806
PEACE RIVER $1,806
FITZGERALD $1,806
GRANDE PRAIRIE $1,806
LETHBRIDGE $1,780
LACOMBE $1,767
RED DEER COUNTY $1,746
ARDROSSAN $1,724
PARKLAND COUNTY $1,724
STONY PLAIN $1,724
BEAUMONT $1,724
MORINVILLE $1,724
SPRUCE GROVE $1,724
FORT SASKATCHEWAN $1,724
STURGEON COUNTY $1,724
DEVON $1,724
LEDUC $1,724
MEDICINE HAT $1,722
RED DEER $1,712
SYLVAN LAKE $1,712

Why should Alberta drivers compare car insurance quotes online?

InsuranceHotline.com is a convenient way to save money and time

Factors that influence your Alberta auto insurance premium

Factors that influence your premium include:

  • Where in Alberta you live
  • The vehicle you drive
  • How often you drive
  • Your driving history
  • Your insurance history
  • The coverage options you choose to include

Premiums also depend on the insurer’s recent claims experience. If a specific insurance company has recently paid out for many collisions, we would expect their rates to increase to account for this elevated risk. Another company may have dealt with fewer recent claims, so they might offer lower premiums to find new customers.

10 tips for getting cheaper car insurance in Alberta

Insurance rates are going up in Alberta, but there’s a lot you can do to ensure that you’re getting the best price.

1) Shop around

In Alberta, rate changes are approved every three months. Compare quotes before renewing your policy to find the cheapest option.

2) Increase your deductible

Save in the neighbourhood of 5 to 10% by increasing your deductible from $500 to $1,000.

3) Pay your premiums all at once

Pay your premiums annually, in one lump sum, to avoid administrative fees that sometimes accompany monthly payments.

4) Bundle your policies

Save 5 to 15% when you buy your home insurance from the same company that covers your car.

5) Insure all cars together on the same policy

If you have more than one vehicle, save 10 to 20% by insuring them on the same policy.

6) Review your policy annually

Each year, review your optional coverages to ensure they are still necessary. If not, getting rid of these excess coverages will lower your premiums.

7) Ask about discounts

Some insurers offer discounts to members of local organisations like the Alberta Motor Association, AUPE members, or university alumni. Ask your provider about the member discounts they offer and see if you qualify.

8) Change your tires seasonally

Let your insurer know if you have winter tires, as some providers offer a winter tire discount of about 5%.

9) Go to school

Encourage young drivers to take driver’s training. Once the course is completed, the insurance savings will offset the initial cost.

10) Moving? Buying a new car?

Where you live and what you drive are two important factors in what you pay for coverage. If you move or buy a new vehicle, don’t assume your current provider will continue to offer you the best price. Shop around to be sure.

Real Alberta drivers, real Alberta auto insurance savings

Just a few examples of custom savings for drivers based in Alberta.

2013 Ford Escape

Savings: $456

Driver: Female, 55
From: Calgary, Alberta 
Driving: 2013 Ford Escape

2008 Audi TT

Savings: $867

Driver: Male, 28 
From: Calgary, Alberta
Driving: 2008 Audi TT

Frequently asked questions about car insurance in Alberta

Why does Alberta car insurance cost so much?

All large cities have high insurance rates, and Alberta is home to two of the largest cities in Canada. The high premiums faced by drivers in Calgary and Edmonton drive up the provincial average. Recent spikes in vehicle theft, collisions and distracted driving convictions have also led to an increase in rates province wide.

Serious collisions in Alberta
According to the most recent study by the Government of Alberta, in 2018, following too closely and running off the road are the most frequent driver actions that cause fatalities in the province. This tragically translates to fatal collisions in Alberta being significantly higher than the national average.

Canada fatalities per 100,000 population = 5.2
Alberta fatalities per 100,000 population = 6.8
Canada fatalities per 100,000 licensed drivers = 7.2
Alberta fatalities per 100,000 licensed drivers = 9.0

This explains part of the reason Alberta premiums are higher than other parts of Canada.

Data source: Government of Canada - Canadian Motor Vehicle Traffic Collision Statistics.


In addition to any liability protection insurance providers must offer following a collision to cover medical expenses, they must also cover costs associated with repairing or replacing vehicles. This is especially expensive for newer cars which tend to have many electronic components and/or may be self-driving. Higher repair and replacement costs lead to more expensive premiums.

Which car insurance company is the cheapest in Alberta?

There is no one car insurance company that is the cheapest overall. Insurance companies assess drivers based on unique risk factors like your home address and personal claims history, which is why rates for the same coverage can vary substantially from one company to another. What is cheapest for you, might not be what’s cheapest for someone else.

To find the company that offers you the best rate and coverage, shop around and compare quotes. This savings technique is something that you should do annually whenever it's time to renew your policy.

Does Alberta’s private auto insurance system help drivers?

Some provinces have a government-owned public auto insurance system. Alberta on the other hand, has a private auto insurance system. Proponents claim that this benefits drivers because market competition forces providers to compete on price, ultimately lowering premiums. In support of this argument, Alberta’s competitive auto industry has consistently been able to offer cheaper rates than publicly operated B.C.

However, things could soon change. Alberta’s previous government imposed a cap which limited auto insurance rate increases to a maximum of 5%. In 2019, the new Conservative provincial government decided not to renew this cap, meaning we can expect large rate increases in Alberta in 2020.

As of January 2022, Alberta put in place a Direct Compensation Property Damage (DCPD) system which means that following a collision each driver’s insurance provider pays out any compensation to their own client. The Insurance Bureau of Canada anticipated that for most Alberta drivers, DCPD would either reduce their premiums or they would see no change at all.

Why should Alberta drivers compare car insurance quotes online?

Car insurance rates are going up in Alberta, and if you renew your policy with the same provider you will almost certainly have to pay more than you did last year. The only way to buck this trend is to shop around for a better rate.

InsuranceHotline.com works with over 30 insurance providers. We aggregate their rates and give you multiple quotes side by side so you can choose the policy that’s best for you. If you like what you see, we’ll connect you to a licensed broker to secure the policy.


Last year, Alberta drivers who used InsuranceHotline.com saved an average of $410 on their car insurance. Find out how much you could save today.

*Shoppers in Alberta who obtained a quote on InsuranceHotline.com from January to December 2021 saved an average of $727 per year. The average savings represents the difference between the shoppers’ average lowest quoted premium and the average of all other quoted premiums generated by InsuranceHotline.com.