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Before you learn everything you need to know about auto insurance in Alberta, let's take a look at some key statistics within the industry. Here are some interesting numbers we found, according to the 2022 Market Report from the Alberta Automobile Insurance Rate Board.
Average cost of auto insurance in Alberta
Change in Alberta rates year-over-year
Change in Alberta rates over five years
Average portion of income spent on auto insurance
better choices made
to Canada’s top financial institutions
Matt Hands, VP, Insurance and MoneySense
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.
of Albertans strongly agree with the statement – auto insurance premiums are fair and reasonable.
of Albertans sought competitve quotes in the past two years.
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 so 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.
Direct compensation for property damage (DCPD)
Emergency roadside assistance
Standard endorsement forms
How much is car insurance in Alberta?
According to the Alberta Automobile Insurance Rate Board, the average cost of auto insurance in 2021 was $1,578. Could you be paying less? Let's find out today.compare quotes
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.
How to get cheap car insurance in Alberta
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.
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.
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.
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.
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.
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.
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.
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.
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.
Are you getting the cheapest car insurance 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 2022 Market Report from the Alberta Auto Insurance Rate Board, there are 65 insurance companies within the province that offer coverage for at least one kind of vehicle. And in the table, you'll find the top private passenger vehicle insurers in Alberta from 2021 (as well as their percentage of market share) as outlined within the report.
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
According to data from the Insurance Bureau of Canada, the average cost of auto insurance in Alberta has risen by about 25% between 2018 and 2022. And with the auto insurance rate pause set to end in December of this year, many Albertans may have concerns about their premiums due to ongoing inflation. The province's finance minister, Nate Horner, is currently tasked with creating both short-term and long-term solutions to the rising cost of insurance.
While there is pressure to adopt a no-fault insurance system, similar to that of Ontario, the government is not going ahead with the change yet, leaving this as a last resort. Some legal professionals are suggesting capping insurer profits and abolishing the rate grid in Alberta.
One recommendation made by the Insurance Bureau of Canada is to offer more choices for vehicle owners, allowing drivers to waive their right to claim minor injury benefits (in return for cheaper auto insurance). The organization has stated its support for Albertans to retain a right to sue when it comes to major injuries.
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.
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Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio