Cheap Edmonton Car Insurance Quotes

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• How does Edmonton auto insurance work?
• How to get the cheapest Edmonton car insurance quote
• How much does Edmonton car insurance cost?
• The cheapest car insurance in Edmonton
• Compare quotes and save on Edmonton auto insurance
• Compare Edmonton car insurance premiums against other Alberta regions
• Factors that determine your Edmonton car insurance rate
• What can I do to get cheaper car insurance in Edmonton?
• Frequently asked questions about auto insurance in Edmonton (FAQs)

How does Edmonton auto insurance work?

The Automobile Insurance Rate Board (AIRB) of Alberta regulates the criteria car insurance companies can use to rate customers; this directly impacts Edmonton car insurance prices. The auto insurance industry is also overseen by the Alberta Superintendent of Insurance. It is mandatory to purchase insurance coverage from a private insurer if you drive a vehicle in Edmonton or anywhere else in the province. There are three mandatory coverages, which everyone must have, and multiple optional coverages available, depending on your needs.

Mandatory insurance for drivers in Edmonton

1. Third-Party Liability: Third-party liability coverage is mandatory because if you are in some way responsible for an accident-causing injury or damage to a third party, your insurance will help pay for any lawsuits filed against you.
2. Direct Compensation for Property Damage (DCPD)
   DCPD will pay to repair or replace your car if it's damaged in an accident that you weren't at fault for causing. Your insurance company will compensate you; you won't have to deal with the at-fault driver at all. Making a DCPD claim won't affect your premium in the future and there's no deductible. Alberta introduced Direct Compensation for Property Damage as part of the Automobile Insurance Reforms in October 2020. DCPD replaced the property damage portion of the third-party liability coverage on a driver's auto insurance policy effective January 1, 2022.
3. Accident Benefits: Having Accident Benefits is also mandatory for your insurance policy. This covers medical/rehabilitation costs, death benefits, funeral expenses and income replacement in the event of an injury resulting from a car accident.

Without this minimum coverage, you are not able to register your automobile. Driving an unregistered and uninsured automobile is illegal in Canada.

Optional insurance for drivers in Edmonton

Most drivers in Edmonton supplement the mandatory (basic) insurance by purchasing additional coverage. Here are some of the optional coverages available to drivers in Edmonton:

1. Collision: If your vehicle is damaged in a collision with another vehicle, an object, or the ground, collision coverage pays for your vehicle's repair. There is usually a deductible amount for this coverage.
2. Comprehensive: Covers damage resulting from an event other than a collision, such as hail, vandalism, theft, or fire. There is usually a deductible amount for this coverage.
3. Specified Perils: This coverage is a more limited version of comprehensive coverage. It covers damage from specific events such as fire, lightning, theft, etc. There is usually a deductible amount for this coverage.
4. Endorsements: An endorsement is an attachment that increases or reduces coverage to a standard automobile policy. Some common coverages under this are Comprehensive Cover Limited Glass (SEF 13D) which limits the coverage on a vehicle's glass for a reduced premium, and Accident Rating Waiver (SEF 39), protecting the renewal of your insurance from increasing due to an at-fault accident involving your insured vehicle, among others.
   

The Grid program

The Grid rating program was developed to establish the maximum rate insurance companies can charge for basic coverage. Over 90% of Alberta drivers do not pay grid rates, according to the AIRB.

Insurance companies must compare a driver's rate under their current rating program to a driver's rate calculated for the grid and charge the lesser of the two rates.

A Grid step is a position on a scale that measures licensed experience and at-fault accident claims. Each step is associated with a percentage used in the grid rate calculation. These steps are part of the Grid Rating Program, which sets maximum rates for basic auto insurance coverage (third-party liability bodily injury, property damage tort and accident benefits) that insurance companies can charge. The number of collisions and driving experience determine a driver's Grid step.

How much does Edmonton car insurance cost?

On average, Edmonton drivers pay some of Canada's highest auto insurance premiums. The highest estimated average car insurance premium is $2,195. The lowest estimated premium is $1,940.

We pulled the data for you in the table below. Your forward sortation area is the first three characters of your postal code.

If you want to see how your premium compares to drivers in another city in Alberta, check out the RATESDOTCA Insuramap data for the complete picture of car insurance prices in the province.

Source: RATESDOTCA Insuramap

The cheapest car insurance in Edmonton

The cheapest car insurance in Edmonton can be found in the T6T and T6J postal code areas at $1,940 per year. The neighbourhoods within these areas include Larkspur, Laurel, Silver Berry, Southeast Edmonton, Blue Quill, Calgary Trail South, Duggan, Ermineskin, Greenfield, Keheewin, Rideau Park, Skyrattler, and Southwest Edmonton.

Use InsuranceHotline.com to find an insurance provider who can get you the cheapest car insurance quote.

Compare quotes and save on Edmonton auto insurance

Shopping around is not the only way to find affordable auto insurance in Edmonton, but calling individual companies for comparative quotes can take a long time.

This is where InsuranceHotline.com can help. Answer a few questions about your driving experience, and we will show you multiple quotes in one place. Comparing cost and coverage has never been so simple.

Our service is free, and last year, drivers in Alberta who compared quotes on InsuranceHotline.com saved an average of $727.*

Compare Edmonton car insurance premiums against other Alberta regions

Automobile drivers in the big cities of Alberta end up paying way more for car insurance than ones in smaller cities, with Edmonton being the second most expensive city for insurance after Calgary. It costs Edmonton drivers $412 more per year than the cheapest car insurance cities like Sylvan Lake, Red Deer and Medicine Hat.

To fairly compare cities, we used the same driver profile to pull quotes: a 35-year-old man driving a 2018 Honda Civic with a conviction and claims-free insurance record.

Source: Statistics Canada

Factors that determine your Edmonton car insurance rate

Edmonton drivers can see their auto insurance change or be different from others depending on their driving expertise, claims history and more. These factors affect car insurance premiums:

• Driving experience: New or young drivers generally pay more for car insurance than more experienced drivers. Creating that experience by driving with a clean record, few to no tickets, and a few years without accident claims will indicate to insurance providers that you are a "good risk." This will ultimately drive down your car insurance rate over time.
• Location: It's true in real estate, and it's true for drivers. Where you live makes a difference. Higher-density areas with more traffic (and the possibility for more accidents/claims) will lead to higher insurance premiums. Some areas are deemed more likely to file claims if there are risks such as higher crime rates.
• Driving habits: Premiums will vary depending on your driving needs. For example, your rates will fluctuate if you are a long-distance commuter versus a short-trip diver. In other words, the more you drive, the higher your rates are likely to be.
• Vehicle type: Just like not all drivers are created equally, the same goes for cars. Vehicles with greater safety features may allow you to reduce premiums. However, luxury cars can also be more expensive to repair, affecting car insurance rates. Also, a souped-up vehicle with aftermarket accessories can change the rates you pay for car insurance. The vehicle's make and model (and year) can also affect the rate of insurance you will pay.
• Gender: Unfortunately for younger males, gender plays a role in how insurance providers assess risk. Inexperienced, younger male drivers have usually deemed a higher risk than other drivers. Younger female drivers are considered less risky and will likely pay relatively lower insurance rates.
• Your provider: Rates can fluctuate depending on your provider and if you have a history with them. Some offer bundled packages with other insurance or have different plans depending on your driving needs. 

*Represents the average saved by Edmonton shoppers who obtained an auto insurance quote on InsuranceHotline.com and transacted via our contact centre between January and December 2022. The average savings amount represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by InsuranceHotline.com.