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Find the best car insurance rates in Alberta

Shopping for more affordable car insurance in Alberta is more important than ever. As rates continue to increase, you need to compare your coverage options. ThinkInsure can help you find the best auto insurance premiums from the top Alberta insurance companies.

It's quick and easy to save. Get started by comparing quotes online, or call us and speak with one of our insurance brokers. We'll get you insured quickly with proper coverage for a great rate. Keep reading to learn more about car insurance in Alberta and find out how to save more on your policy.

Top things to know about car insurance in Alberta

Insurance is mandatory. All drivers must carry at least $200,000 in third party liability, direct compensation property damage, and accident benefits coverage
Alberta has the third-highest car insurance rates in the country - $1,578 annually
Alberta uses the grid rating system - which caps the amount insurers can charge for basic coverage
Starting in 2024, drivers with a good driving record will only have rate increases to account for inflation

How does car insurance work in Alberta?

Car insurance in Alberta works differently than in other provinces. Under the Alberta Insurance Act, laws require you to purchase a mandatory amount of auto insurance coverage. The province uses a grid rate calculator to set your rates. The lower you are on the grid, the less you will pay.

The grid also has a maximum amount an insurer can charge you for mandatory insurance. Additional protection can be purchased from a licensed car insurance provider.

Alberta auto insurance rates and regulation

The provincial government regulates the industry. However, rates are overseen by the Automobile Insurance Rate Board (AIRB) and the Office of the Superintendent of Insurance.

Alberta auto insurance system

Alberta transitioned to a Direct Compensation for Property Damage (DCPD) system on January 1, 2022. It previously operated using a tort-based system where you could seek compensation from another person's insurance provider.

Under DCPD, no-fault rules apply. It does not mean no one is at-fault for an accident. This means your insurance company will cover the damage to your vehicle when you are not at fault for the accident.

The Alberta grid rating system and car insurance

The grid rating system was introduced by the Government of Alberta in 2004. It was created to regulate car insurance rates in Alberta. The system sets the maximum amount an insurer can charge for basic coverage - mandatory third-party liability and accident benefits coverage.

Providers must compare a driver’s premium (as determined by their fee system) to the driver’s premium as calculated by the grid rating system. Insurers must charge the lesser of the two calculations.

Where you land on the grid depends on many common factors – experience, driving record, driving school certification, and age. As your driving record improves, your insurance will go down (you will move down the grid).

It only applies to basic car insurance premiums in Alberta.
Most drivers (94%) do not pay grid amounts.
The grid rate system often caresses drivers with little or no experience.

Learn more on the Automobile Insurance Rate Board AIRB website.

What documentation do you need to purchase auto insurance in Alberta?

To buy car insurance in Alberta, you need to provide the following information to your insurer:

Bill of sale or lease agreement for the vehicle.
Driver’s licence and date of birth of all drivers you want to include in the policy.
Drivers training certificate for new drivers.
Additional information may also be required.

Mandatory auto insurance in Alberta

Auto insurance is mandatory for all drivers in Alberta. You must meet the minimum requirement for mandatory auto insurance in Alberta:

Third-party liability: All policies include 200,000 in third-party liability. This gives you coverage if you cause damage or insure someone while driving. You have the option to increase your liability coverage limits.
Accident benefits: Receive medical care and benefits if you are injured or killed in a crash. You have the option to increase your plan limits.
Direct compensation property damage: You have coverage for damage to your car in a not-at-fault collision.

Anything beyond this is considered optional. Most (98%) Alberta drivers are insured for at least $1,000,000 in liability.

You will need this coverage to register your vehicle or drive. Your rates for the minimum protection are determined using the grid rating program.

Additional minimum coverage included in your policy

All policies include the following coverage:

Medical payments: Up to $50,000 per person.
Death benefit: Up to $10,000 for head of household.
Funeral expenses: $5,000.
Disability income benefits: 80% of gross weekly wages to a maximum of $600/week for up to 104 weeks.

Optional car insurance in Alberta

There are many ways you can personalize your policy. You can add optional coverage to your car insurance policy in Alberta based on your unique needs and preferences. Popular options include:

Comprehensive insurance: Protection against all insured damage caused to your vehicle.
Collision insurance: Protection from damage caused by a collision with another car or object.
Specified perils: Protect your vehicle from risks like flood, fire, hail, or theft.
All perils: Combines comprehensive and collision coverage and increased theft protection.
Emergency roadside assistance: Ensure you can get assistance if you have car trouble.

Standard Endorsement Forms (SEF)

Drivers also have the choice to add insurance endorsements. These are known as Standard Endorsement Forms (SEF) in Alberta. Here are the SEFs you can add:

SEF 19A - Valued Automobile(s): This is for classic vehicles when the depreciated value is significantly lower than its actual value.
SEF 20 - Loss of Use: Get reimbursement for taxis, Ubers or a rental if your vehicle is damaged and being repaired.
SEF 27 - Legal Liability for Damage to Non-Owned Automobile: Use your policy when driving a car you don't own, such as when you rent a car.
SEF 35 - Towing and Emergency Services: Get compensation for towing and other emergency services.
SEF 39 - Accident Rating Waiver: Your rates won’t rise after your first at-fault collision.
SEF 43 - Limited Waiver of Depreciation: This waives the depreciation on the replacement/repair of a new vehicle.
SEF 44 - Family Protection: You have protection if you and your family are injured in an accident and the at-fault driver lacks insurance.

Tips to get cheap car insurance in Alberta

There are several ways Alberta drivers can get cheaper auto insurance. They include:

Shop and compare quotes: Insurance rates vary between providers. The best way to find a lower premium is to compare car insurance quotes from multiple insurance companies in Alberta.
Bundling: If you bundle insurance into one policy with the same company you could save up to 20%.
Check for discounts: Find out what car insurance discounts you qualify for. Companies offer many different deals, so compare them and see how much you can save.
Multiple vehicles: When you insure all your vehicles together, you can save up to 15%.
Drive less: If you don't commute or drive as much anymore, make sure you tell your insurer and lower your costs. Consider Usage based insurance (UBI) to reduce your rates.
Winter tires: Installing winter tires will get you up to 5% savings. Plus, it improves road safety.
Only get what you need: Don't over-insure your car. If you drive an older vehicle, consider dropping optional coverage to save money.
Deductibles: Increase your insurance deductible, and your premium will go down.
Safe cars cost less: Cars with a high safety rating cost less to insure. Check quotes for any vehicles you are considering buying first.
Review your coverage: Review your policy each year before renewal to ensure your driving and insurance needs have stayed the same.
Pay your premiums annually: Pay your annual premium upfront and save more by avoiding administrative fees.
Complete driver education: Completing a driver's ed course with an accredited driving school helps to lower your rates.

Latest Alberta car insurance quotes

2024/07/26

Shopper in AIRDRIE, AB
Vehicle: MAZDA MAZDA6 GT V6 4DR 2005
Pembridge	$950
Intact	$1,011
Travelers	$1,543
Savings from top 4 cheapest quotes	$593

Shopper in GRANDE PRAIRIE, AB
Vehicle: MAZDA CX-5 GX 4DR AWD 2015
Pembridge	$1,663
Intact	$3,355
Travelers	$6,711
Savings from top 4 cheapest quotes	$5,048

How to compare Alberta car insurance quotes

Follow these easy steps to compare quotes and save on car insurance in Alberta!

1) Start your quote

Enter your postal code and some basic information.

2) Driving information

Enter your driving and vehicle details.

3) Compare quotes

See the quotes from top companies.

Select the best rate

Select the lowest rate and buy your policy.

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5 star auto insurance in Alberta

Rated 4.7 out of 5 stars in 1412 Google reviews

See what our car insurance customers are saying about us.

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Tee Vee

2024-06-25

Sohel helped us apply for insurance and got everything done super fast and efficiently! Thanks Sohel!

The Jordan Family

2024-06-20

Solely was an absolute pleasure to work with. He was very knowledgeable and quick to respond. He had my new policy up and ready in the course of an afternoon, not to mention the best rates out all brokers I came across. I highly recommend this man and his customer service. 5 star service indeed!

Jade W

2024-06-17

Bailey went above and beyond. Was insanely patient with my scatter brain and a million questions. He explained everything to a point of actually understanding vs "that other" company that made me feel like a child for not understanding their legal ramblings. I appreciate you!!!!

Erfan Javid

2024-06-14

I worked with Sohel, and he put in an incredible effort for me! Sohel is an amazing insurance broker who was very helpful and honest. Communicating with him by phone and email was effortless, and he completed all my insurance paperwork without any hassle. I had insurance sorted out with just one phone call and one email thread.

Mykyta Shylin

2024-06-13

Thank you Bailey, for your help in getting my auto insurance policy sorted out after the non-payment cancellation. I really appreciate the effort you put in to ensure everything was taken care of quickly.

Bradley Chapman

2024-06-12

I was in a pickle and they really helped me out, very supportive. I dealt with a woman by the name of Denise and honestly, she deserves an additional 5 stars on top of this 5 star review.

Daniel McDonald

2024-06-11

I had a great experience with my broker, super knowledgeable dude helped me get back on the road quick and clean.

mic

2024-06-10

Working with Todd was a pleasure. It was very easy communicating with him by phone and email. He was able to complete all my insurance paperwork with no hassle. Thank you are the best .

What is the average cost of car insurance in Alberta?

The average cost of auto insurance in Alberta is approximately $1,578 per year. This works out to about $132 per month. However, rates in the province are rising, much like in the rest of the country. According to AIRB, the average approved rate change for the previous 12 months (as of March 31, 2024) is 1.90%. The provincial government froze auto insurance increases for the remainder of 2023 to prevent further increases.

Alberta annual auto insurance rate changes

Auto insurance in Alberta is on the rise. According to AIRB, rates have increased each year since 2012 and have only decreased twice in the last decade. Here’s an overview of how car insurance premiums have changed over the years in Alberta:

Year	Yearly Change in Premiums (%)
2012	1.7%
2013	2.4%
2014	3.6%
2015	2.2%
2016	+2.5%
2017	3.6%
2018	+5.1%
2019	6.9%
2020	+8.3%
2021	3.6%
2022	4.5%
2023	Rate increase paused

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

What factors determine auto insurance rates in Alberta?

Insurance companies use a variety of factors to set car insurance rates in Alberta. Premiums will vary from one driver to another based on:

Age, gender, and marital status: Demographic factors play a role in how insurers set your premiums.
Location: Where you are located in the province can change the level of threats and risks while driving.
Experience and years as a licensed driver: More experienced drivers are safer and less likely to get into collisions.
Type of coverage: Your policy choice and personalization of the plan will change how much you pay.
Number of drivers on the policy: Adding people to your policy will increase your payments.
Type of vehicle: Vehicle price and repairs impact insurability.
Vehicle use and distance driven: How you drive, where, and how often affect your odds of filing a claim.
Driving record, at-fault accidents: A clean record will help prevent significant rate increases.
Driver training: Completion of training qualifies you for a discount.
Coverage gaps or lapses: Maintaining a consistent record of insurance will help keep costs down.
Discounts: The type and number of discounts you qualify for will affect how much you can save.

Compare Alberta car insurance quotes and find a better rate

Searching for the lowest car insurance quotes in Alberta is easy with ThinkInsure. You'll find the cheapest rates from the top Alberta car insurance providers in the marketplace. Get started by comparing quotes online or give us a call and our team of insurance advisors will be happy to help you.

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Sources

* Based on the difference between the average lowest premium from ThinkInsure quote data for 2023 quotes from January 1 to October 31, 2023, and the average premium in Alberta from AIRB.

** FSRAO

*** AIRB

Insurance Blog And News

Read our insurance blog to get helpful tips, information and news.

2024-07-24

Alberta Car Insurance

Find the cheapest Ablerta car insurance quotes by comparing rates online and you could save $948*.

Compare Alberta car insurance quotes from the leading providers

Find the best car insurance rates in Alberta

Top things to know about car insurance in Alberta

How does car insurance work in Alberta?

Alberta auto insurance rates and regulation

Alberta auto insurance system

The Alberta grid rating system and car insurance

What documentation do you need to purchase auto insurance in Alberta?

Mandatory auto insurance in Alberta

Additional minimum coverage included in your policy

Optional car insurance in Alberta

Standard Endorsement Forms (SEF)

Tips to get cheap car insurance in Alberta

Latest Alberta car insurance quotes

How to compare Alberta car insurance quotes

1) Start your quote

2) Driving information

3) Compare quotes

Select the best rate

5 star auto insurance in Alberta

Want to save on auto insurance in Alberta?

What is the average cost of car insurance in Alberta?

Alberta annual auto insurance rate changes

Alberta Auto insurance news and trends

Alberta auto insurance premium freeze

Alberta car insurance premium payment plans

2024 Alberta car insurance rate increase cap

How do Alberta auto insurance premiums compare to other provinces?

Alberta car insurance premiums by city

Alberta car insurance by driver type and record

Alberta car insurance by vehicle brand

What factors determine auto insurance rates in Alberta?

Alberta car insurance FAQs

Why is car insurance so expensive in Alberta?

How do I get the best car insurance in Alberta?

Which company has the cheapest Alberta car insurance?

How much is car insurance in Alberta for new drivers?

Can you insure a car without a license in Alberta?

How much are car insurance deductibles in Alberta?

Who can drive my car under my insurance in Alberta?

How does the Alberta driver's licence system work?

Stage one learner

Stage two probationary licence

Full driver’s licence

What if I am caught driving without car insurance in Alberta?

Can you get temporary car insurance in Alberta?

What is the all comers rule for auto insurance in Alberta?

Can I get 6 month car insurance in Alberta?

Compare Alberta car insurance quotes and find a better rate

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