Compare Alberta car insurance quotes

Though car insurance is a requirement for all drivers in Canada, there are differences in coverage requirements between provinces.

 Alberta auto insurance is provided by private insurance carriers, but regulation for Alberta car insurance rates is done through the Alberta government's Automobile Insurance Rate Board (AIRB).

Currently, Albertans pay the third-highest price in Canada for car insurance, and there is much talk of reform to reduce rates. One of the hottest topics is adding no-fault insurance to the province. No-fault means you'll only ever deal with your insurer regardless of who was at fault. It expedites claims, but the opposition argues it increases rates for all. 

Alberta operates with a car insurance grid rate calculator. The lower you are on the grid, the less you pay for car insurance in Alberta. This grid rating program sets the maximum premium an insurer can charge for the mandatory coverage.

Alberta car insurance requirements come in two forms – mandatory and optional.

Mandatory coverage (full descriptions below)

• Third-party liability
• Accident benefits 
• Uninsured automobile insurance
• Direct Compensation Property Damage (DCPD)

Optional coverage (full descriptions below)

• Collision insurance
• Comprehensive car insurance
• Specified perils
• All perils 

There are also optional Standard Endorsement Forms (SEF) which are endorsements you can add to your coverage. Here are 4 common Alberta endorsements. 

• SEF 20 - covers the cost of a rental vehicle while yours is being repaired or replaced
• SEF 27 - Ports your existing insurance to a rental car or car you borrow
• SEF 39 - Accident forgiveness - insurance won't go up after your first at-fault claim
• SEF 43R - Removes depreciation in calculating the value of your car when settling a claim

The Alberta car insurance industry has seen significant change in the average rates they charge to consumers. Since 2007 there has been a +16.95% increase in average cost of car insurance in Alberta.

In late 2019, the conservative government removed a 5% cap on any rate increases.  The cap removal saw over 92% of private insurers apply for rate changes. Some insurers increased their rates by 20%, but most insurers falling in around the 10–12% range. 

In Q1 of 2020, the rate increases continued, but slowed drastically in Q2 to 1% thanks to the pandemic. In Q3, the average of rate increases that saw approval was about 15%, and it looks as though there is some downward momentum in the market on the year overall. We'll see what 2021 has in store. 

Car insurance rate changes are a result of many factors including market inflation, insurance fraud and claims volumes. The auto insurance rates are controlled and set by the provincial government. The Automobile Insurance Rate Board (AIRB) and the Office of the Superintendent of insurance are the two agencies within the government that manage car insurance rates in Alberta. The historical rate changes shown below are based on all the drivers insured each year by every auto insurance company in Alberta.

*source: https://airb.alberta.ca/industry-information/filing-decisions/default.aspx