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Car Insurance In Alberta

How much does car insurance in Alberta cost? On average, car insurance premiums were $122/month in 2017. This is quite low compared to a province like Ontario, whose car insurance premiums are the highest in Canada (average $161/month in 2017).

Albertans tend to pay about 25% less for car insurance than Ontario drivers. However, there are a variety of factors that will affect how much you pay for car insurance (explored below).

Men tend to pay slightly higher premiums than women ($126 and $116 respectively). Why the discrepancy? Well, the statistical data shows that women are more likely to be involved in smaller car accidents, while men are more likely to be involved in more serious accidents (i.e. Car collisions while speeding) which result in larger insurance claims.

Your insurance premium is also determined by your age, since younger drivers on average are involved in more car accidents than older, more experienced drivers. Drivers under 25 years old can expect to pay around $187/month for insurance (without any prior accidents or convictions for driving offences), while drivers aged 31-35 pay $152, and the trend continues down to drivers aged between 56-60 paying on average $100 per month.

The value of your car also plays a factor in your premiums. For example, higher-priced cars ($40,000-80,000) will result in premiums of around $170 per month, while more modest cars on average cost $123 per month for insurance. To get the lowest rate possible, your best bet would be to drive a car valued between $5,000-$10,000. This way you only pay around $108 per month for vehicle insurance.

Lastly, your insurance premium is determined by your driving history. With a clean driving record, a driver over 25 years of age can expect an insurance premium of around $110/month. However, as soon as you accumulate 2 or more violations in the past 3 years, you can expect to see an increase up to $141/month. High risk drivers can expect an even bigger increase ($295/month) which is more than double what a driver with a clean record can expect to pay.

One last thing to keep in mind is that Canadian insurers typically do not consider your experience driving abroad. Even if you have 5-10 years of experience driving in a different country, you will typically be treated as a new driver upon obtaining your first vehicle insurance policy and have to pay a higher rate.  Further, simply having a driver’s license for a period of time does not automatically decrease your insurance rates.  Rather, having vehicle insurance as a listed driver is what counts.  However, these rates go down with time.

If you have any questions about accident insurance benefits, this article goes in depth about the types of accident benefits available to Alberta drivers.

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