Medicine Hat, in southwest Alberta, has about 66,000 people in it and is known for its landscapes and abundant sunshine.
Much like the rest of Alberta, drivers in Medicine Hat are required to obtain car insurance in order to operate a vehicle. The system is a private insurance structure where you can purchase Medicine Hat car insurance from a broker, agent or directly from an insurance provider.
The AIRB (Alberta Automobile Insurance Rate Board) 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.
A grid rating program was developed to establish the maximum rate insurance companies can charge for basic coverage (third-party liability and accident benefits). 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. The Automobile Insurance Rate Board says that over 90 per cent of Alberta drivers do not pay grid rates.
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|Savings: $612 (27%)|
|Savings: $776 (29%)|
|Savings: $689 (27%)|
|Insurance Type||Mandatory Coverage||Additional/Optional Coverage|
|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.|
|Collision Coverage||Optional||Covers car replacement or repair costs if your car is damaged in a collision and the policyholder is at fault.|
|Specified perils||Optional||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||Optional||Covers many perils, broadly, has similarities to collision and comprehensive coverage.|
|Accident-rating Waiver (SEF 39)||Optional||Prevents an Alberta car insurance premium from going up following a collision in which the policyholder is at fault.|
|Family Protection (SEF 44)||Optional||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)||Optional||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 13 D)||Optional||Reduces the amount of coverage for glass damage in exchange for a lower premium.|
|Limited Waiver of Depreciation (SEF 43R)||Optional||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)||Optional||Compensation for transportation costs up to a limit when a vehicle is damaged due to a covered peril.|
|Towing and Emergency Services (SEF 25)||Optional||Coverage for towing and other emergency service costs when a vehicle is disabled, and the driver doesn’t have roadside assistance.|
The average Medicine Hat car insurance rate is $1,722 per year, which is a little more than $200 below the provincial average of $1,991. When compared to other cities in Alberta, Medicine Hat has the third lowest car insurance premium, far behind Calgary ($2,230), Edmonton ($2,124), Airdrie ($2,000) and other cities. The car insurance premium of drivers in Medicine Hat is only slightly higher than those in Red Deer ($1,712) and Sylvan Lake ($1,712).
New drivers, especially those under 25, will find their Medicine Hat car insurance premiums are high. As you age and gain experience, rates will start to decline. By the time you are 50, rates will come down again.
Different cars come with different expenses. Base models are cheaper to maintain and may have a lower theft rate than cars that are expensive. Also, luxury cars often come with higher maintenance and repair costs.
Location, location, location matters when looking for Medicine Hat car insurance. Neighbourhoods with higher claims could affect your rates, as can high crime areas and congestion.
The safer and cleaner your driving record, the more you can save on Medicine Hat auto insurance quotes. Speeding, driving under the influence, and driving without a licence, can all increase premiums (or worse, have your licence revoked in some cases).
Medicine Hat auto insurance companies are looking to reduce their risk. A driving history with no claims and a safe record can help reduce rates, as you will be considered a lower risk than someone with a history of insurance claims.
Also, failure to pay premiums on time will hurt your credibility and could affect the rates you pay. Failure to pay premiums could lead to a total policy cancellation.
In Alberta, certain forms of insurance coverage are mandatory, and some are additional or optional. The more optional coverage you tack onto your policy, the more you will likely pay for Medicine Hat auto insurance. It’s wise to talk to your agent or broker about the specific insurance coverage you need in order to reduce “over insuring” and keeping costs down.
Deductibles are the amount you pay in the event of a collision or repair before your insurance provider’s benefits kick in. Taking on a higher deductible will reduce costs because you are lowering the risk for your provider.
Having a low deductible means higher Medicine Hat auto insurance rates because your provider is taking on the risk of paying more benefits upfront.
Bundling is a way for insurance providers to get more of your business by selling insurance packages (life, home and auto) in one product. Committing to more services under one package usually comes with a discount compared to pricing the products individually.
Medicine Hat car insurance companies look at your gender and marital status when determining rates. Single men are considered higher risk than married men. Also, women are viewed as lower risk drivers than men by most insurance companies.
Capital is king. And so, insurance companies need to ensure that they have enough money in their accounts to pay potential benefits to customers. More claims and payouts could mean higher rates in order to balance their cash flow.
You know that feeling when you find out you’re getting a really good deal? Maybe it’s bold for us to say, but, we think you’ll be feeling it in about five to 10 minutes. How can we be so sure?
Get a quote that will help you save hundreds of dollars on insurance annually.
*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.
Find answers to all your questions about Medicine Hat car insurance.
To find the cheapest Medicine Hat car insurance start comparison shopping on sites like InsuranceHotline.com. A few clicks and you’ll get current insurance rate quotes from the top providers in Medicine Hat.
You can also try talking to a broker who will do the leg work for you and provide you with multiple quotes from providers.
Auto insurance is different for everyone. Whether you are an occasional driver, experienced driver, have multiple vehicles or simply want the most basic coverage, finding the best auto insurance will start with knowing what you need or want.
Then visit InsuranceHotline.com to see which providers can meet those challenges and offer the cheapest rates
In most cases you will need a Claims Experience Letter and a Driver’s Abstract from a previous insurance provider and previous licencing authority. However different companies have different rules, and it is advisable to talk to a broker who can advise you on the proper documentation.