Cheap Alberta Car Insurance Quotes

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.

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.

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:

*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.