Cheap Calgary Car Insurance Quotes

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.

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.

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.

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.

*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.