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Compare cheap car insurance quotes in Alberta

In under five minutes, compare personalized car insurance quotes from Alberta's top providers – free of charge.

How to compare Alberta car insurance quotes with Ratehub.ca

  1. Share information

    Tell us a little about yourself and your auto coverage needs.

  2. Compare quotes

    We instantly show you auto insurance quotes from top Alberta providers.

  3. Save money

    Choose your quote and secure your car insurance rate online.

A snapshot of the Alberta auto insurance industry

Before you learn everything you need to know about auto insurance in Alberta, let's take a look at some key statistics within the province's industry. Here are some interesting numbers we found, according to the 2023 Market & Trends Report from the Alberta Automobile Insurance Rate Board.

  • $1,587

    Average cost of auto insurance in Alberta

    Based on 2022 data for average written premiums

  • +0.6%

    Change in Alberta rates year-over-year

    Based on 2021 & 2022 data for average written premiums

  • +21.0%

    Change in Alberta rates over five years

    Based on 2018 to 2022 data for average written premiums

  • 3.5%

    Average portion of income spent on auto insurance

    Based on 2021 data for after-tax income

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Why should I compare Alberta car insurance quotes?

In 2022, the AIRB released their Customer Perspectives on Automobile Insurance Report, outlining the results of a survey they conducted on all things Alberta auto insurance. 

When presented with the statement, "Automobile insurance rates are fair and reasonable," only 25% of participants highly agreed with the statement. This shouldn't come as a surprise as Albertans pay some of the highest rates across the country – but this number was a whole 14% higher than the results from 2021. In the previous year, only 11% of respondents strongly agreed that the cost of auto insurance was fair and reasonable. And even though the majority of participants didn't strongly agree, only about half of them (53%) claimed to have sought competitive quotes within the last two years – with 59% doing this through websites. 

That means many Albertans are missing out on potential savings. Shopping around for car insurance and comparing quotes online is one of the best ways to ensure you're getting the lowest rate possible for all the coverage you need. So what are you waiting for? Start saving with Ratehub.ca today.

25%

of Albertans strongly agree with the statement – auto insurance premiums are fair and reasonable.

53%

of Albertans sought competitve quotes in the past two years.

How does car insurance in Alberta work?

Like the rest of Canada, car insurance is mandatory across the province of Alberta – you're legally required to insure your vehicle before taking it out on the roads. Auto insurance in Alberta is provided by private carriers. These companies receive regulation for their rates through the government's Automobile Insurance Rate Board (AIRB).

Albertans currently pay the third-highest rates for auto insurance in Canada (after British Columbia and Ontario), and there is much talk of reform to reduce rates. In January 2022, the provincial government enabled legislation changes, requiring drivers to carry Direct Compensation for Property Damage (DCPD) insurance. This type of coverage is part of a no-fault auto insurance system – drivers only deal with their own insurer when making a property damage claim after a collision, regardless of fault. The idea behind this system is that the claims process will be expedited and drivers will receive their funds earlier. It lowers the related costs that come with recovering compensation from a third party.

The province also operates with an auto insurance grid rate calculator. This determines the maximum rate an insurer can offer (for basic coverages) based on a driver's risk profile. The higher you sit on the grid, the more you'll be paying – but still, most drivers won't pay their exact grid premium as it is more of a cap for insurers to price their premiums accordingly.

If you're looking to learn more about auto insurance in Alberta, we can help. Read on to make sure you understand everything there is to know about the coverage you need. 

Mandatory types of car insurance in Alberta

The following types of car insurance are mandatory in Alberta – it is standard for all auto policies across the province to include these coverages.

Third-party liability


Accident benefits


Direct compensation for property damage (DCPD)


Optional types of car insurance in Alberta

Here are a few optional coverages you can add to your Alberta auto insurance policy to increase your protection, as well as your peace of mind.

Collision


Comprehensive


Specified perils


All perils


Emergency roadside assistance


Standard endorsement forms


Recent news on collision insurance in Alberta

The Alberta government has announced an increase in the threshold for reporting property damage after a collision from $2,000 to $5,000, effective 2024. This means that under the new rule, drivers are not required to report property damage to law enforcement unless the cost exceeds $5,000 – in an effort to reduce reporting for minor collisions while deterring fraudulent resales of damaged vehicles. However, collisions resulting in injuries or fatalities must still be reported regardless of property damage costs.

How much is car insurance in Alberta?

According to the Alberta Automobile Insurance Rate Board, the average cost of auto insurance in 2022 was $1,587. Could you be paying less? Let's find out today.

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The cost of Alberta auto insurance by region

When it comes to your car insurance premium, location plays a big role in the price you'll be paying. According to the 2022 Market Trends Report from the AIRB, here's the average cost of auto insurance, segmented by region in Alberta.

  • $1,799/year

    Auto insurance in Edmonton

    Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.

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  • $1,695/year

    Auto insurance in Calgary

    Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.

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  • $1,563/year

    Auto insurance in Northern Alberta

    Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.

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  • $1,395/year

    Auto insurance in remaining regions

    Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.

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How to get cheap car insurance in Alberta

While market factors play a big role in the cost of your auto insurance, there are still many steps you can take to ensure you're getting the best rate possible. Here, we cover eight different tips for cheap auto insurance in Alberta. 

  1. Shop and compare

    Research which auto insurance companies offers the cheap premiums. While rates may change overtime, comparing Alberta car insurance quotes with us is free.

  2. Stay loyal

    Alberta auto insurance companies tend to give discounts to drivers who remain an active customer for years – especially if there's family members and multiple vehicles on the policy.

  3. Bundle your policies

    If you use the same insurance company for both your home and auto insurance needs, your insurer will often thank you with a dip in premiums.

  4. Get a multi-car discount

    If you have multiple drivers and vehicles in the same household, putting them all on one policy can save you money.

  1. Ask about discounts

    If you’re a member of a large corporation, union, or a school alumnus, you could b eligible for cheaper car insurance – just ask your broker or agent for group rate options.

  2. Pay annual premiums

    Paying auto insurance premiums monthly adds administrative costs to your insurer, so if you’re able to pay annually, you can lower your rate. It also shows the company you're planning to stay loyal.

  3. Maintain a good driving record

    If you’re a safe driver, you can reduce your chances of an accident. Car crashes stay on your insurance record for years and can result in higher premiums.

  4. Install winter tires

    Did you know you can save simply for installing winter tires on your vehicle during off-season? Not only that, it'll also make you a safer driver.

Factors that impact your Alberta car insurance quote

There are many individualized factors auto insurance companies look at, in order to determine your personalized quote. Generally speaking, the more risk you bring, the more expensive your policy will be – here are a few factors you should be aware of.

  • Age

    Young drivers tend to pay the highest rates. So while most people don't look forward to growing old, at least cheaper premiums come along with it.

  • Gender

    Men are more commonly involved in car accidents, so they tend to pay higher insurance rates. It might not be fair, but insurers like to limit their risk.

  • Location

    Living in busy, populated cities, such as Edmonton, can impact your insurance rate negatively – you're more prone to collision and theft.

  • Vehicle type

    Vehicles that cost more to repair and replace inevitably come with increased auto insurance rates. The same goes with highly-stolen cars.

  • Driving history

    Traffic convictions will impact your insurance rate negatively. Insurers like to minimize their risk, so drive safely for the best rates possible.

  • Driving behaviour

    More time on the road increases your chances of having to make a claim. So driving less can actually lower your auto insurance rate.

  • License class

    Graduating through the Alberta licensing system – and obtaining your Class 5 – will lead to cheaper auto insurance rates due to the added experience.

  • Vehicle use

    If you use your vehicle for business purposes, you'll most likely need to pay more for insurance. Pleasure-use cars tend to come with cheaper rates.

Are you getting the cheapest car insurance in Alberta?

In just a few steps, you can view customized car insurance quotes from the province's top providers – find your lowest Alberta auto insurance rate with us today.

The best car insurance companies in Alberta

Auto insurance in Alberta is issued by private companies, creating a competitive market for its consumers. This means insurers can compete for your business based on the price and services they offer – there isn't one single company that dictates how much premiums cost.

According to the 2023 Market Report from the Alberta Auto Insurance Rate Board, there were a total of 37 companies writing insurance for private passenger vehicles in 2022. In the table below, you'll find the top private passenger vehicle insurers in Alberta from that year, as well as their percentage of market share.

Keep in mind that the most popular insurer won't necessarily be the best one for you. You'll want to choose the company that offers all the coverage options you need for the lowest rate possible – be sure to compare car insurance quotes with us today to find your best option.

Recent auto insurance news in Alberta

The Alberta government recently announced that rate hikes for auto insurance premiums will be capped for 'good drivers' starting in January of 2024 – this will be tied to the consumer price index, meaning the premium increase for this select group will be limited to 3.7%.

Whether or not you'll qualify as a 'good driver' will be based on a few terms. Firstly, you cannot have one or more at-fault accidents on record within the last six years. Secondly, you cannot have any Criminal Code traffic convictions on record within the last four years. And finally, you cannot have any major traffic convictions (such as distracted driving or school zone speeding) or more than one minor one within the last three years. 

Arguably, the definition of a 'good driver' is quite narrow, leaving many drivers out of the picture. As this select group is rewarded for their driving behaviour, 'bad drivers' could potentially see their auto insurance premiums soar. Those who choose to switch insurance companies also won't be protected under the cap.

The Alberta government is also proposing more power to the Auto Insurance Rate Board (AIRB) – allowing the board to direct insurers to return a portion of profits to their policyholders during high-profit years. There are also plans to make it a permanent requirement that insurers provide consumers with payment plan options, allowing them to stagger their payments throughout the year.

The future state of auto insurance within the province remains uncertain – only time will tell if any measures taken will effectively bring more cost-effective options for Albertans.

learn more about auto insurance reform

Frequently asked Alberta car insurance questions

Do I need auto insurance in Alberta?


What is the best car insurance company in Alberta?


What is the cheapest car insurance in Alberta?


Can you insure a car without a license in Alberta?


Who can drive my car under my insurance in Alberta?


Does my insurance cover me if I drive for Uber or Lyft in Alberta?


Do you need insurance to register a vehicle in Alberta?


Why does car insurance in Alberta cost so much?


Do I need winter tires in Alberta?


Can I bundle my auto and home insurance in Alberta?