Cheap Calgary Car Insurance Quotes

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

How does Calgary auto insurance work?

If you own a car in Calgary, or anywhere else in Canada, you need car insurance. Before purchasing a policy, it’s helpful for drivers to understand how they are structured. There is coverage that’s required by law as well as optional coverage that drivers can purchase at their discretion if they’d like additional protection. Some details about each are outlined below.

Calgary operates within Alberta’s private insurance system, whereby you purchase insurance from a private company such as an insurance broker, insurance agent or a direct policy writer (someone who works for a particular insurance company).

However, there is a government advisory board called AIRB (Alberta Automobile Insurance Rate Board) that regulates the amount of money private companies can charge for basic coverage (PLPD and accident benefits). They release the approved rate changes every three months.

AIRB have devised a Grid rating system, which enables drivers in Calgary to see the maximum rate they will have to pay for a basic policy. Many young drivers have their rates capped by the grid, but if you have a few years of experience and a clean record, you can expect to pay less.

Optional coverages are not regulated, and private companies can charge whatever amount they see fit. However, as with any private industry, companies must have competitive pricing in order to attract customers.

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Mandatory and optional car insurance coverage in Calgary

Every driver in Calgary must have the following coverage:

  • Personal liability and property damage (PLPD): More commonly known as third-party liability, this covers medical bills and repair costs for other drivers in the event you are at-fault in a car accident. Drivers in Calgary must have a minimum of $200,000 PLPD in order to satisfy provincial regulations.
  • Accident benefits: This coverage will help pay for medical and rehab treatment, funeral expenses, death benefits, and salary replacement in the event you, one of your passengers, or a pedestrian is injured or killed in a car accident, regardless of who is at fault.
  • Direct compensation property damage (DCPD): This coverage, introduced in Alberta in January 2022, means that following an accident for which the policyholder is at-fault, their insurance company will provide compensation. This approach eliminates the need for drivers to pursue compensation from another driver’s insurance provider which can be time-consuming and costly.While basic Alberta car insurance policy with only the mandatory coverage only contains these provisions, according to provincial data, more than 90% of Calgary’s drivers opt for additional protection by increasing their coverage limits and/or adding optional coverages to their policies.


Optional car insurance in Calgary

  • Collision: Collision helps pay for damage to your vehicle following a collision.
  • Comprehensive insurance: Comprehensive pays for loss or damage to your vehicle after a “named peril” such as fire, vandalism or theft.

    Many drivers opt for both collision and comprehensive, but depending on the value of your vehicle, you may decide to get one over the other, or neither. The more coverage you choose, the more coverage you will have, and the more your insurance policy will cost.
  • Named perils coverage: This is the cheapest form of coverage, but also provides the least protection. It only protects against the perils listed in your policy.

    Alberta drivers seeking even more coverage than is available through mandatory coverage can get it by adding any of the following endorsements to their policies:
  • Accident Rating Waiver (SEF 39): This coverage allows drivers to maintain their premium following an at-fault accident. In other words, it won’t go up following a collision.
  • Comprehensive Cover Limited Glass (SEF 13D): Allows the driver to receive less coverage for glass damage in exchange for a lower premium.
  • Family Protection (SEF 44): Following a collision, covers any gap if costs are greater than what the other driver’s insurance provides. Comes into play for drivers in a collision with uninsured or unidentified drivers.
  • Legal Liability for Damage to Non-Owned Automobiles (SEF 27): Extends the policyholder’s coverage and deductible for physical damage coverage to a rental vehicle.
  • Limited Waiver of Depreciation (SEF 43R): With this coverage drivers who have a new vehicle damaged by an insurable peril will have depreciation on the repair or replacement of it waived.
  • Loss of Use (SEF 20): Covers the cost of alternative transportation, up to a limit, for a damaged vehicle that can’t be used because it’s being repaired.
  • Towing and Emergency Services (SEF 35): Covers the costs for towing and emergency services if a vehicle can’t operate and the driver doesn’t have roadside assistance.

How much does car insurance in Calgary cost?

On average, Calgary’s drivers face some of the highest car insurance rates in the province, second only to drivers in Edmonton.

According to RATESDOTCA’s Auto Insuramap tool, in 2021, the average premium for a Calgary driver had increased to $2,230. The same tool revealed that by comparison Edmonton drivers paid an average amount of $2,124. The provincial average for the same year was $1,991. This means that the premiums in Calgary were 12% higher than the provincial average while those in Edmonton were 7% higher.

In 2019, a report by Insurance Bureau of Canada reflected that the average premium paid by a single driver with one car in Calgary is $1,500 per year, or $125 per month. In comparison, the provincial average for Alberta was $1,316 per year, or $109.67 per month.

Calgary car insurance rates by postal code

Location within a city is one of the most significant factors influencing premiums. In 2021, RATESDOTCA’s Auto Insuramap tool indicated that Calgary residents located in the postal code region ‘T3Z’, in the southwestern part of the city, enjoyed the least expensive premiums: $1,849. In the same year, residents in the postal code region ‘T1Y’, in the northeastern part of the city, who paid an average premium of $2,730.

While it’s difficult to pinpoint one specific factor that leads to high car insurance premiums in any city, drivers based in neighbourhoods where there is a high volume of collisions and/or many incidents of vehicle theft will pay more for coverage.

Insurance companies are always trying to gauge how likely a driver is to make a claim. Drivers in densely populated neighbourhoods may be more likely to be in a collision and as a result will pay more for protection.

Here is a list of average 2021 premiums for various postal code regions in Calgary.

Calgary postal code Avg. 2021 premium
T1Y0A2 $2,730
T2A0A1 $2,636
T2B0A1 $2,636
T2C0A2 $2,239
T2E0A1 $2,239
T2G0A1 $2,239
T2H0A1 $2,239
T2J0A1 $2,239
T2K0A1 $2,239
T2L0A1 $2,140
T2M0A1 $2,239
T2N0A1 $2,140
T2P0A1 $2,239
T2R0A1 $2,239
T2S0A1 $2,239
T2T0A1 $2,239
T2V0A1 $2,140
T2W0A1 $2,140
T2X0A1 $2,239
T2Y0A1 $1,948
T2Z0A1 $2,239
T3A0A1 $1,948
T3B0A1 $2,140
T3C0A1 $2,140
T3E0A1 $2,140
T3G0A1 $2,140
T3H0A1 $2,140
T3J0A1 $2,730
T3K0A1 $2,239
T3L0A1 $2,140
T3M0A1 $1,948
T3N0A1 $2,730
T3P0A1 $2,239
T3R0A1 $2,140
T3S0A1 $2,000
T3Z0A1 $1,849

Factors that influence your Calgary auto insurance premium

There are many factors influencing your car insurance premium, but the most important ones are:

Your address: If you live in an area of Calgary with relatively little crime and few collisions, insurance companies will be more willing to offer a low premium. However, Calgary is somewhat unique in that auto crimes are not limited to specific hot spots. Calgary police see more vehicle thefts from the downtown core in the warmer months, but this trend is reversed in wintertime, when thieves head to the suburbs and take advantage of idling cars being left unattended.

Your vehicle. If you drive a normal car, your rate will likely be cheaper than if you drive a sports car or high-end SUV. The reason for this is that replacement parts are cheaper and easier to get, and someone who opts for a sensible sedan over a souped-up muscle car is seen as a less risky insurance prospect.

Your driving and insurance history: If you have been driving for a long time, and have had no insurance claims, speeding tickets or other infractions, insurers will be clamouring for your business. You are a perfect, low-risk candidate and deserving of the lowest rates. According to internal data, the percentage of Calgary drivers who have had no accidents in the past 10 years is 85.60%.

Your driving habits: People who spend more time on the road have more chance of getting into an accident and have to pay more for insurance. This is why insurance companies request your annual mileage when completing a quote. According to internal data, the average distance driven by Calgary drivers is 14,028 km per year.

Your age: There isn’t much you can do about this one unfortunately. Drivers under the age of 25, or with less than eight years of driving experience, pay more for car insurance in Calgary. The data shows that this group is more likely to be involved in a motor accident, and insurance companies offset the risk by asking for a higher premium. Keep a clean record, and you’ll see rates decrease as you gain more experience.

What can I do to get cheaper car insurance in Calgary?

There’s a lot you can do to ensure that you’re getting the best price for your auto insurance, and the following tips will help ensure you’re not overpaying for your coverage:

Shop around

Calgary’s private auto insurance industry means there are many companies competing for your business. Compare multiple rates before you purchase a policy to ensure you have the best deal.

Increase your deductible

If your deductible is currently sitting at $500 and you are willing to take on a higher portion of risk, save up to 10% by increasing it to $1,000.

Pay your premiums all at once

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

Bundle your policies

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

Insure all cars together on the same policy

Many Calgary households have more than one vehicle. Save up to 20% by insuring them on the same policy.

Review your policy annually

Each year, review your optional coverages. If your circumstances have changed and they’re no longer needed, slim down your policy for a lower premium.

Ask about discounts

You may be surprised to learn that insurance companies offer discounts to members of some local organizations. The most common association discounts for Calgary drivers go to SAIT, The Association of Professional Engineers and Geoscientists of Alberta (APEGA), University of Calgary Students and University of Calgary Alumni.

Change your tires seasonally

Calgary gets a lot of snow, and collisions spike during bad weather. Let your insurer know if you have winter tires, as most providers give a 5% discount for this safety measure.

Go to school

Encourage young Calgarians to take an approved driver’s training course. It demonstrates responsibility and the insurance savings typically outweigh the cost of the course within one year.

Sample Car Insurance Quotes Completed for Drivers in Calgary, Alberta

Below are real quotes that were recently completed on InsuranceHotline.com by drivers living in Calgary, Alberta:

Compare quotes and save on Calgary auto insurance

Calgary car insurance rates are increasing, and quotes can vary by hundreds if not thousands of dollars for the exact same protection. If you don’t shop around, you are almost certainly paying too much.


InsuranceHotline.com helps drivers compare rates from over 30 of Canada's top insurance providers. We show you your options side by side, making it easy to find the best price and coverage. Our service is free and there is never any obligation to buy.


Last year, Calgary drivers who compared quotes on InsuranceHotline.com saved an average of $527.09 on their annual premium.

*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 represent the difference between the shoppers’ average lowest quoted premium and the average of all other quoted premiums generated by InsuranceHotline.com.

Frequently asked questions about auto insurance in Calgary

Here are some of the most common questions we get about car insurance in Calgary.

Why do I need car insurance in Calgary?

Without insurance, you will not be able to register your automobile. It is illegal to drive an uninsured or unregistered vehicle in Alberta. Mandatory coverages vary from province to province, but in Alberta, each policy must include third-party liability and accident benefits insurance.

For more information on provincial regulations, check out our Alberta car insurance page.

Why does Calgary car insurance cost so much?

Alberta, owing historically to a high impaired driving rate, and more recently to cell phone use behind the wheel, has a higher percentage of serious collisions than other parts of Canada. Calgary is the most populated city in Alberta and as a result, the problem is worse here than in rural parts of the province.

Calgary also has a high rate of insurance fraud and vehicular theft. Unfortunately for residents, insurance companies recoup their costs by increasing rates for everyone in the city.