Alberta Auto insurance news and trends
Alberta has some of the highest car insurance premiums in all of Canada. To combat this, the government has been working on several reform solutions:
Alberta auto insurance premium freeze
To combat inflation and increasing cost of living, the Alberta government has put a freeze on rates for private vehicles until the end of 2023.
However, some drivers could see increases upon renewal if there was a change in their driving record, moving to a new address or a change of vehicles.
Alberta car insurance premium payment plans
The government is working on a long-term solution to make auto insurance premiums more affordable.
The government is requiring insurers to allow people to pay premiums through a payment plan. This spreads out the cost rather than forcing them to pay a lump sum when a policy is issued.
2024 Alberta car insurance rate increase cap
Starting in 2024, drivers with a good driving record will only see their rates increase to account for inflation. The September 2023 Alberta inflation rate will be used - 3.7%. This means good drivers can only see their rates increase by a maximum of 3.7% to account for inflation.
You will not qualify if you have major convictions, tickets, or criminal code traffic violations on your driving record.
How do Alberta auto insurance premiums compare to other provinces?
Auto insurance in the province is higher than in most provinces. Based on the Insurance Bureau of Canada numbers, only Ontario and British Columbia have higher premiums.
Here’s a comparison of how Alberta car insurance premiums compare to the rest of Canada:
| Province/Territory | Avg annual premium | Monthly rate | Difference from Ontario average | Monthly payment difference | Higher/ Lower than average |
|---|---|---|---|---|---|
| Alberta | $1,578** | $132 | |||
| BC | $1,832 | $153 | $254 | $21 | Higher |
| Ontario | $1,737* | $145 | $159 | $13 | Higher |
| Saskatchewan | $1,274 | $106 | $304 | $25 | Lower |
| Newfoundland | $1,251 | $104 | $327 | $27 | Lower |
| Manitoba | $1,200 | $100 | $378 | $32 | Lower |
| Nova Scotia | $1,066 | $89 | $512 | $43 | Lower |
| Northwest Territories | $1,050 | $88 | $528 | $44 | Lower |
| Nunavut | $1,033 | $86 | $545 | $45 | Lower |
| New Brunswick | $1,014 | $85 | $564 | $47 | Lower |
| Yukon Territories | $889 | $74 | $689 | $57 | Lower |
| Prince Edward Island | $885 | $74 | $673 | $56 | Lower |
| Quebec | $857 | $71 | $721 | $60 | Lower |
Source: Insurance Bureau of Canada
Alberta car insurance premiums by city
Where you live within the province is also a determining factor. You’ll pay more for insurance if you live in a larger city. For example, car insurance in Calgary and Edmonton have higher rates than other smaller towns.
We gathered driver quote data to see how costs differ by location. Here’s an overview of the average premium based on the city:
| City | Average premium | Monthly payment |
|---|---|---|
| Alberta | $2,626 | $219 |
| Edmonton | $2,667 | $222 |
| Calgary | $2,734 | $228 |
| Airdrie | $2,669 | $222 |
| Fort McMurray | $2,446 | $204 |
| Grande Prairie | $2,685 | $224 |
| Red Deer | $2,189 | $182 |
| Lethbridge | $2,358 | $197 |
| Fort Saskatchewan | $2,718 | $227 |
| Cochrane | $1,786 | $149 |
| Leduc | $2,213 | $184 |
| Medicine Hat | $1,501 | $125 |
| Lloydminster | $2,116 | $176 |
Alberta car insurance by driver type and record
We collected ThinkInsure customer quote data from January to October 2023 to determine how quotes differ based on driver type, demographics, and driving record. Here are the results in the table below:
| Average premium | Monthly payment | |
|---|---|---|
| Driver type | ||
| Young (25 and under) | $3,268 | $272 |
| Middle age (25 - 50) | $2,667 | $222 |
| Mature/senior (50+) | $1,798 | $149 |
| Demographics | ||
| Male | $2,702 | $225 |
| Female | $2,477 | $206 |
| Married | $2,560 | $213 |
| Single | $2,709 | $225 |
| Driving record | ||
| Clean driving record | $2,626 | $218 |
| 1 ticket with past 3 years | $2,855 | $237 |
| 1 accident in 3 years | $2,988 | $249 |
| 1 cancellation in 3 years | $2,661 | $221 |
| 1 suspension in 3 years | $2,881 | $240 |
Alberta car insurance by vehicle brand
Vehicle brand is another key factor that can influence your auto insurance payments. We compared customers' vehicle brand data to identify which brands are more affordable for insurance. Here are the results:
| Vehicle | Premium | Monthly payment |
|---|---|---|
| Ford | $2,493 | $208 |
| GMC | $2,314 | $193 |
| Honda | $2,711 | $226 |
| Chevy | $2,428 | $202 |
| RAM | $2,586 | $216 |
| Toyota | $2,621 | $218 |
| Nissan | $2,701 | $225 |
| Jeep | $2,323 | $194 |
| Mazda | $2,533 | $211 |
| Subaru | $2,487 | $207 |
| Lexus | $2,635 | $220 |
| Tesla | $3,258 | $272 |
| Hyundai | $2,860 | $238 |
**
Alberta car insurance FAQs
Alberta car insurance is expensive for a number of reasons unique to driving conditions in the province. The top factors that increase insurance costs are:
- Traffic: Calgary and Edmonton have some of the busiest roads in the country.
- Weather-related claims: Alberta is known for its harsh weather conditions, especially during the winter months.
- Auto theft: Alberta has the highest auto theft rates in Canada.
- Distracted driving: Texting and driving is a significant issue. It's the cause of many collisions.
- Insurance fraud: Fraud is an issue that costs us all.
Comparison shopping is the most effective way to find the best car insurance in Alberta for your specific situation. Getting quotes allows you to see what multiple insurers can offer in terms of price, protection, and overall value for your policy.
There isn't one car insurance company in Alberta with the cheapest rates. It depends on your needs, driving history, and many other factors. Each insurer has a specific method for calculating fees. Comparing quotes is the only way to determine which company can offer you the lowest fees.
Car insurance for new drivers in Alberta is more expensive. The grid rate calculator often caps less experienced drivers. As new drivers gain experience and maintain a clean driving record, their premiums will decrease over time.
Yes. It is possible to insure a vehicle without a full driver's licence. Your ability to do so will vary from insurer to insurer, depending on your specific driving situation. Speak with our experts about your options.
All policies have deductibles for comprehensive and collision protection. Your amount will vary based on several factors – threats, insurers, and your preferences. Most deductibles in Alberta range from $250 - $1,000 or higher.
The higher you set your deductible amount, the more you can reduce premiums. Choose an amount you are comfortable paying if you were to have to file a claim.
If you grant permission, any licensed driver can operate your vehicle. They will be covered under your policy. Your policy follows your vehicle.
The Alberta drivers licence system uses a graduated licensing system. You must complete all stages to become a fully licensed driver. In total, there are 7 different driver’s licence classes. Class 7 learner's and Class 5 standard driver’s licence are the most common.
You can start the driver's licensing process at the age of 14. At this point, you can get a stage one learner's licence.
Stage one learner
You must be at least 14 years of age and pass a vision and knowledge test. A fully licensed driver must accompany you.
Stage two probationary licence
You must be at least 16 and have your stage one learner’s license for at least one year. You must pass the basic Alberta Class 5 road test.
Full driver’s licence
You must have a two-year probationary license and pass an advanced road test.
Drivers convicted of driving without insurance in Alberta will face steep fines:
- First offence: $2,500 - $10,000 fine, plus 15% surcharge.
- Second offence: $5,000 - $20,000 fine, plus a 15% surcharge.
- Other penalties: License suspension and 60 days in jail possible for repeat offenders.
No. Insurers do not offer temporary insurance car insurance in Alberta. You will need to get a 6-month or 1-year policy.
The all comers rule ensures that most drivers can qualify for auto insurance in Alberta. Under the Alberta insurance laws, providers cannot refuse third-party liability and accident benefits to new drivers or current policyholders. However, there are some exceptions to the rule where coverage can be denied.
Yes. Some insurers offer policies for 6-month terms. However, the vast majority issued are for one year. Shop around to find insurers who offer 6-month car insurance in Alberta.
