Car Insurance – Alberta
Car insurance is more than just a legal requirement in Alberta – it’s a safety net that protects you, your vehicle, and others on the road.
With its unique mix of urban traffic, rural highways, and extreme weather conditions, Alberta presents a range of risks for drivers and their vehicles. That’s why it’s important to have the right coverage, including liability insurance in Alberta. Whether you’re a new driver or just looking to update your coverage, understanding how car insurance works will help you make an informed decision. From getting a car insurance quote in Alberta to renewing your policy, we’re here to guide you every step of the way.
Car insurance in Alberta, explained
In Alberta, personal auto insurance is sold through private insurance companies and not provided through the government, as in some of our neighbouring provinces. This means there’s more flexibility to shop around for the right coverage within your budget.
There are three mandatory coverages required for all car policies in Alberta: Third-Party Liability, Accident Benefits, and Direct Compensation-Property Damage. However, there’s no “standard” policy for insuring your vehicle. There are a range of optional coverages you can add to your policy for extra protection.
Whether your insurance renewal is coming up, or if you just want to see what personal car insurance quotes in Alberta are like, our local insurance experts are ready to help.
Mandatory car insurance coverage in Alberta
Third-Party car insurance in Alberta provides coverage for bodily injury (including death) and property damage to a Third-Party if you or someone driving your vehicle are at fault for an accident.
This coverage includes limited benefits for the driver, occupants and even pedestrians, that are injured or killed in an car accident, regardless of who’s at fault. This can include medical and rehabilitation costs, funeral expenses, death benefits and income replacement.
Provides coverage for physical damage to your vehicle when you are not at fault in a collision accident. This coverage includes Loss of Use benefits as well as damage to contents in the vehicle at the time of the accident.
Collision insurance in Alberta is a popular coverage drivers add to their policy. It’ll cover instances where your vehicle has been damaged due to a collision with another vehicle or object, as well as overturning the vehicle, when you are at fault
This provides coverage for damages caused by incidents other than a collision. It includes losses such as impact with wildlife, flying or falling objects, fire, lightning, theft, explosions, earthquake, windstorm, hail, rising water, vandalism, and riot, amongst others.
This coverage is limited to only include coverage for fire, lightning, theft, windstorm, earthquake, hail, explosion, riot, falling and forced landing of an aircraft or its parts, rising water, and the stranding, sinking, burning, derailment or collision of any unit that the vehicle is being transported on by land or water. It’s important to note that it doesn’t cover any glass, vandalism, or animal impact.
This coverage combines Collision and Upset with Comprehensive under one single coverage.
This provides coverage for the cost of a rental vehicle if your vehicle is not drivable, or in the shop being repaired, due to an insured loss.
This coverage is usually only available for private passenger vehicles. In the event your vehicle is determined to be a total loss from an insured peril, it will cover the cost of replacing it with a new model. To qualify, you must be the original owner of a new vehicle and must purchase the coverage in a limited period of time after purchasing the vehicle. Our qualified brokers can review the qualifications for coverage with you to determine if this coverage would be available.
This endorsement will stop the depreciation on a vehicle if it is determined to be a total loss caused by an insured peril. You must be the original owner or lessee of the brand-new vehicle and must purchase the coverage in a limited time after getting your car. Unlike replacement cost, it will not upgrade you to a newer model year, but it will cover up to the original purchase price or MSRP, whichever is lower.
No matter how carefully you drive, sometimes you’re involved in a collision where another driver is at fault. If the at-fault driver doesn’t have any or enough insurance, this coverage makes up the difference to make sure that you and your family have access to the funds you need to fully recover from an injury. This coverage also is available if you are involved in a motor vehicle accident as a pedestrian.
Renting a vehicle? This endorsement provides coverage for physical damage to a rental vehicle. There is a maximum amount it will pay so make sure your limit is high enough to cover the value of the vehicle you will be renting.
Offered by many car insurance companies in Alberta, this protects your driving record and insurance premiums from being affected by a first “at-fault” loss.
How much does car insurance cost in Alberta?
How much you pay for personal auto insurance in Alberta depends on where you live, the type of car you drive, and more.
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What factors determine the cost of car insurance in Alberta?
There are several factors that insurance providers use to determine the cost of your auto policy; some of them are not within your control, such as where you live, but others are within your control, like having a clean driving record.
The amount of time you’ve had your driver’s license and have been an insured driver are two factors insurance providers consider when determining rates. They also consider your driving record, whether you’ve had tickets, the type of ticket, and whether you have had any previous claims.
Your location and where you live also determine how much you pay. Some areas of Alberta, such as urban, high-population areas, will have a higher volume of people on the road, leading to more accidents, vandalism, and theft.
Your rates will be different if you only use your vehicle for errands and vacations instead of commuting to work every day. Inherently, you’re more at risk while out on the road every day for work compared to someone who may not drive as much.
The make, model and year of your vehicle can all affect the cost of your auto policy. If you are shopping for a new vehicle, talk to your car insurance broker before purchasing so that you will be aware of the insurance costs.
How to save on car insurance in Alberta
Take advantage of extra savings by bundling your home and auto policies with the same provider. You can typically save on each policy with a bundle discount.
There are a few ways to save on auto insurance in Alberta. First, review your coverages and limits with your car insurance broker. Optimizing your coverage to ensure it fits your needs and lifestyle is a great way to cut costs and avoid paying for protection you may not want or need.
Raising your deductible is another way to reduce your premium. A higher deductible means you’d be paying more out of pocket in the event of a claim, but it could help you save on your monthly insurance cost.
Take advantage of the discounts offered by your provider – many automotive insurance companies in Alberta offer a selection of discounts for which you may be eligible.
Finally, inquire about telematics or tracking programs. Providers will sometimes offer a percentage off your insurance if you allow them to assess your driving habits using a telematics app or device in your car.
Examples of car insurance claims
I was rear-ended. Are my vehicle repairs covered under auto insurance?
Well, that depends on the coverage you have and what coverage the vehicle that hit you has.
There are potentially two coverages that may respond to your damages caused by the at-fault driver who hit your vehicle.
- If the at-fault driver does carry insurance, then your damages would be covered under DCPD (Direct Compensation for Property Damage).
- If the at-fault driver is uninsured or if you are unable to determine that they have insurance (such as a hit and run), then you would require Collison coverage in order to claim for damages.
I hit a deer. Does my auto insurance cover the repairs to my vehicle?
If you have only the mandatory coverage (Third-Party Liability, Accident Benefits and DCPD), your insurance will not cover the repairs.
If you have either Collision or Comprehensive insurance, the repairs, less your deductible, will be covered. With Collision coverage, the claim will be an “at-fault accident” though, so it could affect your premiums. On the other hand, if the claim is under Comprehensive coverage, it is deemed as a “no-fault accident” so it will typically not affect your premiums, unless you have had multiple claims under your Comprehensive coverage.
In Alberta, they allow impact with wildlife to be covered under Comprehensive coverage, but if you do not carry Comprehensive but do carry Collision, then you have the option of claiming it as a Collision claim.
Why choose Westland for car insurance in Alberta?
Expert advisors go above and beyond
Our advisors go the extra mile every step of the way and do the legwork to provide personalized auto insurance coverage – including Third-Party car insurance in Alberta – to suit your lifestyle.
Our large network of insurers means more choice
We have a large network of insurers that we can tap into - guaranteeing great rates and options - so you know you’re not missing out.
We work hard to make things simple
Whether it comes to finding the right car insurance coverage or navigating a claim, we keep things simple and use language that everyone can understand.
At Westland Insurance, we are dedicated to providing affordable personal car insurance across Alberta. We proudly serve the following towns and cities in Alberta:
Calgary
Edmonton
Red Deer
Lethbridge
St. Albert
Medicine Hat
Grande Prairie
Airdrie
Spruce Grove
Leduc
Fort McMurray
Camrose
Okotoks
Cochrane
Brooks
Lloydminster
Sylvan Lake
Sexsmith
Spirit River
Car insurance FAQs in Alberta
In Alberta, all drivers must carry a minimum level of car insurance. This includes Accident Benefits, Third-Party Liability, and Direct Compensation – Property Damage
Any Alberta resident with a valid driver’s licence can buy a car insurance policy, as long as they can provide the required paperwork.
There are three mandatory coverages required for all auto policies: Third-Party insurance in Alberta, Accident Benefits, and Direct Compensation-Property Damage. Who can drive my automobile under my insurance in Alberta?
Those who have your permission and valid driver’s license are able to drive your vehicle. They must be properly registered and insured in Alberta with a car insurance policy to cover themselves.
Types of vehicle insurance in Alberta
Motorcycle insurance
Offers coverage you need to drive a motorcycle, moped, or scooter on public roadways with peace of mind.
Off-road vehicle insurance
Best suited for those with a taste for adventure, get an off-road vehicle insurance policy for your snowmobile or all-terrain vehicle.
Rental vehicle insurance
A more cost-effective alternative to getting insurance through the rental company while still getting the protection you need.
RV insurance
With similar coverages to auto insurance, RV insurance policies also address the unique features of having a home on wheels.
Commercial auto insurance
Whether you have one commercial vehicle or a fleet, we have the commercial auto policy you need.
Buy car insurance in Alberta with confidence
Whether you’re buying a new car, shopping around ahead of your renewal or need to discuss your current auto insurance coverage, we’re ready to help. Get the protection you need – including Third-Party car insurance in Alberta – for peace of mind. Connect with us today to get started.
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