Average monthly car insurance rates in Alberta

5 minute read Published on Oct 18, 2021 by BrokerLink Communications

Average monthly car insurance rates in Alberta

If you’re on this page, you’ve probably looked up something along the lines of, “how much does car insurance cost in Alberta?” The truth is, there are many different answers to this question. Car insurance varies from person to person, and many different factors can impact how much you pay. In this article, we’ll talk about the average rates for car insurance in Alberta and the factors that can impact your rate. We’ll also share some tips that can help you save on car insurance in Alberta, from Fort McMurray to Lethbridge.

How much is car insurance in Alberta?

According to the most recent figures from the Insurance Bureau of Canada, the average Alberta car insurance rate is $1,316. That breaks down to $110 per month. Based on IBC’s data, Alberta car insurance is the third most expensive in Canada, after British Columbia and Ontario. If you’re looking for the least expensive car insurance in Canada, you’ll have to head to Quebec, where they pay an average of $717 per year, or about $60 per month. If your French is a bit rusty, don’t worry. You don’t have to move across the country to save on insurance.

How does car insurance in Alberta compare to other provinces?

Check out the chart below to see how car insurance in Alberta compares to other provinces across Canada. We’ve listed the provinces from most to least expensive. The info in this chart comes from the most recent data shared by the Insurance Bureau of Canada.

Province Average annual car insurance rate Average monthly car insurance rate Private or government based
British Columbia $1,832 $152 Government
Ontario $1,505 $125 Private
Alberta $1,316 $110 Private
Saskatchewan $1,235 $103 Government
Newfoundland and Labrador $1,168 $97 Private
Manitoba $1,080 $90 Government
Nova Scotia $891 $74 Private
New Brunswick $867 $72 Private/td>
Prince Edward Island $816 $68 Private
Quebec $717 $60 Dual private and government insurance

How are car insurance rates in Alberta calculated?

In Canada, car insurance is a provincial matter. Some provinces, like British Columbia, Manitoba and Saskatchewan have a public insurance system managed by the government. In provinces with public insurance, this is the only option for insurance. Alberta has private insurance, which means there are more options. Drivers can shop around at multiple insurance companies to find the best rates.

When determining car insurance premiums in Alberta, insurance companies consider a variety of different factors. They’ll ask for your age, where you live, the type of car you drive, how long you’ve been driving, if you’ve received any driving infractions like a speeding ticket and if you’ve ever been in an accident and filed a claim. The insurance company will take all this into consideration and determine how likely it is you’ll be involved in an accident and this is how your premium is determined.

Your next question is probably, “How do they determine who is more likely to submit a claim?” Insurance companies hire professional actuaries. Actuaries use math, data and statistics to manage risk. In order to become an actuary, you have to attend university and study actuarial science. But it doesn’t stop there. Actuaries have to take ongoing courses to maintain their accreditation and keep their skills up to date. They are pretty smart and they have many tools at their disposal to help them accurately predict the various risk factors related to drivers.

What factors impact car insurance in Alberta?

The average monthly car insurance rate in Alberta is approximately $110 according to IBC’s report, however, you might find yourself paying more or less than the average rate. If an insurance company determines you are at a higher risk of getting in a car accident and submitting a claim, you will likely pay a higher insurance rate. Below are a few of the factors that will determine your car insurance rate in Alberta.

Driving experience

From the perspective of the insurance company, the more driving and insurance experience you have, the less of a risk you pose. So have patience – if you have a high rate, a few years of accident-free driving could change that.

Type of vehicle

Your insurance company will consider the type of vehicle you drive. Some vehicles are more expensive than others to insure. That’s because different vehicles have different risks. Some are more likely to be stolen. Some have expensive parts. Some have safety features that could actually save you money.

Check out our guide to buying a new car where we share what to look for in a new vehicle.

Claims history

In Alberta, car insurance is typically more expensive if you have been involved in an accident and submitted a claim. However, once you gain more accident-free driving experience, that rate is likely to decline. Consider adding accident forgiveness to your policy. It ensures your rates won’t increase after your first at-fault claim.

Ways to save on car insurance in Alberta

Here are a few ways you can save on car insurance in Alberta:

  • Drive at off-peak times
  • Install a telematics app like Intact’s myDrive that rewards you for good driving
  • Install winter tires and let your broker know
  • Bundle home and auto insurance policies

Get an Alberta car insurance quote from BrokerLink

It can be overwhelming to find the best car insurance in Alberta. That’s where BrokerLink comes in. Our brokers are insurance experts. They’ll take the time to get to know you and understand your needs. Together, you’ll find an insurance plan that fits. It’s easy to get in touch with a BrokerLink insurance broker:

Get an auto insurance quote [phone]

FAQs about average car insurance rates in Alberta

What are the cheapest cars to insure in Alberta?

While some cars might be cheaper than others to insure, the exact rate varies from person to person. We suggest you do your research and find a car that fits all your needs. An insurance broker will get you the right insurance for that car.

Are the car insurance premiums in Alberta higher than in Ontario?

According to the most recent numbers from the Insurance Bureau of Canada, Alberta is the third most expensive province for car insurance, after British Columbia and Ontario.