The average auto insurance in Alberta is around $1,316 per year. However, rates can vary greatly (up to 14%) across the cities.
Are you ready to see how your city stacks up?
The following study was completed by Rates.ca, and all calculations are based on a 35-year-old male with a clean driving record.
Top 10 Most Expensive Cities to Insure your Vehicle in Alberta
- Calgary – $2,230
- Edmonton – $2,124
- Airdrie – $2,000
- Chestermere – $2,000
- Blackfalds – $1,969
- St. Alberta – $1,940
- Alcomdale – $1,849
- Sherwood Park – $1,832
- Fort McMurray – $1,806
- Lethbridge – $1,760
Why Is It So Expensive to Insure a Vehicle in Edmonton & Calgary?
Sorry Edmonton, but it looks like your auto insurance premiums are one of the highest in the province at 7% above the average insurance costs in Alberta (but 5% less than those in Calgary).
Why is this the case? While premiums are largely determined by your own personal driving record, there are a couple of other factors that come into play:
One of these factors is population density. Larger populations mean more vehicles on the road, which generally means a higher risk of accidents occurring.
Historically, Edmonton has seen a higher incidence of claims than other cities, so insurance companies need to consider this risk when pricing out their premiums.
Another factor that plays into higher premiums is public transit.
The less people that use public transit, the higher the insurance will be for the average driver because, again, it means that there are more vehicles crowding the roads.
Cell Phone Use
In the province of Alberta, between 2012 and 2019, there were around 24,000 convictions for distracted driving while using a cell phone!
Thankfully, this number when down during 2020, but because distracted driving has become a leading cause of car accidents in Alberta, it negatively impacted insurance rates.
Lastly, insurance companies consider theft rates when building their pricing.
With Edmonton Police noting an increase in vehicle theft year over year, it’s bound to have a ripple effect on premiums.
Are Insurance Prices Regulated in Alberta?
Alberta uses a private insurance system, which means that drivers purchase their coverage from insurance companies that compete for business.
However, there are government rules established by AIRB (Automobile Insurance Rate Board) that dictate how these companies conduct their business.
AIRB enforces price caps, using a grid system to determine the most and least an insurance company can charge for basic car insurance.
This Grid outlines the maximum amount a driver can pay for insurance, determining how your rates go up and down based on a variety of factors.
Basic insurance coverage in Alberta must include accident benefits, third-party liability, and direct compensation for property damage.
What Can Affect the Cost of Insurance in Alberta?
Other than where you live, there are other factors that can determine how much you will pay for car insurance in Alberta, such as:
- Your driving and insurance records.
- Your age and gender.
- The type of vehicle you drive.
- How you use your vehicle (i.e., the number of kilometers you drive, if you use your vehicle for business, etc.)
The business environment in Alberta can also affect insurance costs, with insurance companies reporting that the cost of doing business in the province is increasing.
The Top 10 Cheapest Cities to Insure your Vehicle in Alberta
Let’s take a look at the other end of the spectrum. Here is a list of the cheapest auto insurance rates across Alberta.
- Sylvan Lake – $1,712
- Red Deer – $1,712
- Medicine Hat – $1,722
- Leduc – $1,724
- Devon – $1,724
- Sturgeon Country – $1,724
- Beaumont – $1,724
- Stony Plain – $1,724
- Red Deer County – $1,746
- Lacombe – $1,767
How to Get the Cheapest Auto Insurance in Alberta
Other than moving to Lacombe (if you don’t live there already), there are ways that you can decrease your auto insurance costs:
- Get winter tires installed.
- Install an anti-theft device.
- Insure all of your vehicles under one policy.
- Bundle your car insurance with your home insurance.
- Take a driver’s training course.
- Increase your deductible.
- Drive less.
- Pay your premiums annually (instead of monthly).
- Consider usage-based insurance.
Perhaps the best way you can get cheaper auto insurance in Alberta is to shop around for insurance quotes.
Arc Insurance Has You Covered!
No matter where you live in Alberta, Arc Insurance is dedicated to providing you with the best insurance package to suit your unique financial needs.
We offer competitive rates for drivers with excellent driving records.
We’re here to work for you to save you money!
Contact us today for more information, or click here to start a quote.