Compare cheap car insurance quotes in Alberta

In 2025, the AIRB released its Customer Perspectives on Automobile Insurance Report, outlining the results of a survey on all things Alberta auto insurance. 

When presented with the statement, "Automobile insurance rates are fair and reasonable," 39% of participants reported high agreement, which is notably 10% higher than the previous year. This may come as a surprise, as Albertans pay the second-highest rates across the country, but it could be attributed to drivers expecting much higher increases than what actually occurred.

The survey also examined Albertans' tolerance for rate increases to understand what an acceptable increase would be, given inflation and rising living costs. The results showed that price sensitivity has increased, as 42% of participants said they’d shop the market when faced with a 1%-5% increase at renewal. Traditionally, Albertans would tolerate increases of up to 10% at renewal. However, when asked whether they’ve looked for competitive quotes in the last two years, just 44% responded yes—a 9% decrease from 2024 to 2025.

Shopping around for the best car insurance rates in Alberta by 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.

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 purchased through a private carrier marketplace. These companies receive regulation for their rates through the government's Automobile Insurance Rate Board (AIRB).

Albertans currently pay the second-highest auto insurance premiums in Canada. Over the past few years, the government has implemented a number of measures to reform the system and reduce rates. This has included rate caps for 'Good Drivers' and a push towards a more traditional no-fault system, moving away from the hybrid tort system that had been in place. Even with these measures, auto insurance prices continue to rise year over year. As of Q3 2025, Alberta auto insurance rates were up +8.5% over the previous year (as reported in the Applied Rating Index).

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 reduces the costs associated with recovering compensation from a third party.

In addition to these changes, the government plans to introduce a new ‘Care-First’ system starting on January 1, 2027, focused on introducing a more traditional no-fault auto insurance system, reducing the time to claim payouts and increasing compensation benefits for accident-related claims. Similar to how no-fault Ontario car insurance works, insured drivers injured in a collision will now deal directly with their insurance company for any accident benefits-related claims, instead of having to sue for coverage.

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.

When it comes to your car insurance premium, location plays a big role in the price you'll be paying. Using Ratehub.ca’s auto insurance calculator, we pulled sample quotes for each major city in the Province and ranked them by cost. 

^{The quotes are from November 2025 and are based on a 35-year-old male driving a 2023 Honda Civic, with no policy bundling or telematics discount applied, a $1,000 collision and comprehensive deductible and $1,000,000 in liability coverage.}

The cost of Alberta auto insurance compared to other provinces

The latest data from the 2025 Mid-Year Market & Trends report ranks Alberta the second-most expensive province for car insurance in Canada. The table below outlines the average premiums by province.

Tons of factors influence premium costs. In Alberta, severe weather events, auto theft and large population centers contribute to the high prices. Comparing auto insurance quotes across different providers is the best way to find the right coverage for you at an affordable price. 

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. 

There are many individual factors that auto insurance companies consider 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.

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.

That’s why the most popular insurer won't necessarily be the best one for you. To find the best insurance company in Alberta, you want to choose the one that offers all the coverage options you need for the lowest rate possible. To find your best option, compare car insurance quotes with Ratehub.ca.

Although the hard market in the province has led to a few insurance companies exiting over the past few years, there’s still a strong contingent of insurance options available. According to the 2025 Market Report from the Alberta Auto Insurance Rate Board, there are a total of 29 companies writing insurance for private passenger vehicles. In the table below, you'll find the top private passenger vehicle insurers in Alberta from 2024, as well as their percentage of market share.