Compare cheap car insurance quotes in Alberta
In under five minutes, compare personalized car insurance quotes from Alberta's top providers – free of charge.
Recent cheap car insurance quotes from our Alberta users
Thousands of users turn to us each week, looking to save big on their insurance policies. Just as we’ve helped them compare the market with ease, we can help you too. Below are four sample rates our Alberta users received when comparing personalized auto insurance quotes with us. See how much you could save by trying our free auto insurance comparison tool today.
- $105/month
Chestermere auto insurance
for a 55-year-old female, driving a 2013 Ford Edge
- $143/month
Fort McMurray auto insurance
for a 55-year-old male, driving a 2012 Nissan Rogue
- $147/month
Calgary auto insurance
for a 58-year-old female, driving a 2020 Jeep Compass
- $163/month
Edmonton auto insurance
for a 36-year-old female, driving a 2024 Toyota RAV4
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A snapshot of the Alberta auto insurance industry
Matt Hands, VP, Insurance
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 2024 Market & Trends Report from the Alberta Automobile Insurance Rate Board.
- $1,669
Average cost of auto insurance in Alberta
Based on 2023 data for average written premiums
- +5.2%
Change in Alberta rates year-over-year
Based on 2022 & 2023 data for average written premiums
- +19.0%
Change in Alberta rates over five years
Based on 2019 to 2023 data for average written premiums
- 3.1%
Average portion of income spent on auto insurance
Based on 2022 data for after-tax income
Why should I compare Alberta car insurance quotes?
In 2024, 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," over 50% of participants claimed to be in low agreement. This shouldn't come as a surprise as Albertans pay some of the highest rates across the country – but notably, the number of respondents that strongly agreed was 10% higher than that of the previous year.
The survey also looked at whether Albertans have experienced an unexpected rate increase within the last two years, despite being free of convictions and claims – 55% of respondents indicated so in 2024 which was quite comparative to 2023 (59%) and 2022 (60%) data. When asked about shopping the Alberta market, only about half of the respondents (53%) claimed to have done within the last two years, seeking competitive quotes for a cheaper rate.
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.
55%
of Albertans experienced an unexpected rate increase within the last two years
53%
of Albertans sought competitive quotes within the last 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 2023 was $1,669. Could you be paying less? Let's find out today.
compare quotesThe 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 2021 data from the AIRB, here's the average cost of auto insurance, segmented by region in Alberta.
- $1,757/year
Auto insurance in Edmonton
Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.
get a quote - $1,733/year
Auto insurance in Calgary
Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.
get a quote - $1,563/year
Auto insurance in Northern Alberta
Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.
get a quote - $1,395/year
Auto insurance in remaining regions
Average written premium in 2021, based on data from the Alberta Auto Insurance Rate Board.
get a quote
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.
- Shop and compare
Research which auto insurance companies offers the cheapest premiums. While rates may change over time, comparing Alberta car insurance quotes with us is free.
- Stay loyal
Alberta auto insurance companies tend to give discounts to drivers who remain an active customer for years – especially if there are 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 be 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.
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 2024 Market Report from the Alberta Auto Insurance Rate Board, there are a total of 26 companies writing insurance for private passenger vehicles. In the table below, you'll find the top private passenger vehicle insurers in Alberta from 2023, 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 news: The implications of Alberta's auto insurance rate cap
Starting in January 2024, the Alberta government introduced a 3.7% cap on rate hikes for certain good drivers – which is linked to the consumer price index. While this may sound like a win for many drivers across the province, it may not be as beneficial as it appears.
To qualify for the good driver cap, you must meet strict criteria: no at-fault accidents within the past six years, no Criminal Code traffic convictions in the last four years, no major convictions (e.g. distracted driving or speeding in a school zone) in the past three years, and no more than one minor conviction in the last three years.
This narrow definition excludes many drivers, and while this select group enjoys limited rate increases, other drivers may see their premiums rise sharply. The cap only applies to policy renewals, so newcomers and new drivers are often left paying higher rates. Plus, the cap could discourage drivers who already qualify from exploring Alberta’s open insurance market.
A recent MNP report (commissioned by the Insurance Bureau of Canada) estimates that premiums could rise by nearly 88% over the next decade without reforms to reduce claims costs. In an alternative scenario in which the rate cap is removed and reforms to stabilize claims costs are implemented, the report projects an average premium increase of about 37% only.
Since these changes, some insurers have also cited reduced profits due to rising claim costs, leading companies like Sonnet and Aviva to announce plans to phase out their auto insurance business in Alberta.
The future of Alberta’s auto insurance system remains uncertain. Only time will reveal whether more measures will be taken to help make car insurance more affordable for Albertans.
Frequently asked Alberta car insurance questions
Do I need auto insurance in Alberta?
Yes, it's the law. You must carry at least $200,000 in third-party liability, along with your accident benefits and DCPD insurance.
What is the best car insurance company in Alberta?
The best car insurance company in Alberta will differ depending on your needs as a driver. Different providers offer different coverages and you'll want to find the one that meets all your needs for the lowest price possible. To do so, be sure to compare car insurance quotes with us – we'll show you personalized rates form top providers across Alberta.
What is the cheapest car insurance in Alberta?
The cheapest car insurance in Alberta is the basic, required package that only includes third-party liability, accident benefits, and DCPD coverage. The government has set a maximum limit to how much any private insurer can charge for basic insurance to keep it affordable for all.
The minimum requirements don't include collision or comprehensive coverage – so essentially, you'll only be protecting other people's property as well as yourself and others from injury. If you want protection against damage to your own car, you'll need to add optional coverages to your policy.
Can you insure a car without a license in Alberta?
You can buy an in-transit permit from your local municipality to transport a vehicle, but to drive a car, the car must be insured and you must have a license by law.
Who can drive my car under my insurance in Alberta?
Anyone whom you trust can drive your car (provided they also have a valid license). If a friend or family member gets into an accident, your insurance will cover damages to the other party. But be sure to let your insurer know if you allow someone to drive frequently. And if your share your vehicle with a member of your household, you're also required to inform your provider. Otherwise, your insurance company may deny your claim.
Does my insurance cover me if I drive for Uber or Lyft in Alberta?
First, remember that in Alberta, you will always need your own insurance in order to legally operate a vehicle. Next, while some companies are fine with rideshare practices, that's not always the case.
In the summer of 2016, the Superintendent of Insurance of Alberta passed a new ridesharing insurance policy – Uber purchased the new commercial insurance policy putting it into effect on July 1st of the same year. The company offers full coverage on their commercial policies when you are logged in and actively working as one of their ridesharing drivers.
We recommend that you contact your car insurance company to inform them of your ridesharing intentions. If you fail to notify your auto insurer, it could lead to the cancellation of coverage.
Learn more: Uber & rideshare insurance in Canada
Do you need insurance to register a vehicle in Alberta?
Yes, you'll need a valid auto insurance policy to register your car in Alberta. The insurance also needs to include the name of the individual requesting for registration.
Why does car insurance in Alberta cost so much?
Your car insurance premium is based on many personal factors, including your driving history and the make and model of your vehicle. But unfortunately, there are also many cost factors that are out of your control – the annual volume of claims, fraud, and costly repairs are driving up the price of auto insurance in Alberta.
Do I need winter tires in Alberta?
You don't need winter tires by law (yet), but they can save you money on car insurance as they are a great safety measure for that legendary Albertan snow.
Can I bundle my auto and home insurance in Alberta?
Yes, you can bundle your auto insurance with home insurance in Alberta. This is a great way to increase your savings as insurers will reward you with discounted premiums for purchasing multiple policies under them.