Is car insurance mandatory in Chestermere?
Yes, car insurance is mandatory in Chestermere and everywhere else in Alberta. Therefore, in order to register your vehicle, you will be required to show proof of insurance.
Beyond making car insurance a legal requirement, the provincial government of Alberta has stipulated that insurance policies must meet the minimum coverage standards. These minimum coverage standards include accident benefits coverage, uninsured automobile coverage, direct compensation - property damage coverage, and no less than $200,000 in third party liability coverage.
Compulsory car insurance in Chestermere
Car insurance is not one-size-fits-all. Rather, policies vary based on each driver’s unique needs and budget. However, the Alberta government has made four coverages compulsory, though drivers can still choose how much of each to include.
We outline the four components of compulsory car insurance in Chestermere below. Note that the following coverage is required in all circumstances, no matter whether you own, lease, or finance your vehicle:
Third party liability coverage
Third party liability coverage protects Chestermere drivers if they get into an accident that they are at fault for. For example, if you cause a collision that results in bodily injury or property damage, liability coverage can help you cover the costs of medical expenses or vehicle repairs. It can also help pay for court fees or legal counsel, if necessary. In Alberta, drivers must hold a minimum of $200,000 in third party liability coverage at all times.
Direct compensation - property damage coverage
Direct compensation - property damage coverage protects the policyholder in the event that they get into an accident that was not their fault. This type of coverage offers compensation if you suffer an injury or your car is damaged in the accident. In the case of direct compensation, the insurance company may reimburse the policyholder directly for their claim.
Accident benefits coverage
Accident benefits coverage can help cover the costs of medical expenses following a collision. This type of coverage can be claimed no matter which party was at fault for the accident, and it can help pay for the medical expenses of the driver, passenger, or any pedestrians involved in the accident.
While a driver’s healthcare plan likely covers certain medical expenses, it may not cover all of them, such as prescription medications or physical therapy, which is when accident benefits coverage comes in handy.
Uninsured automobile coverage
Uninsured automobile coverage protects you and any passengers in your vehicle if you’re involved in an accident with an at-fault driver who is uninsured or underinsured. This mandatory coverage type also protects against hit-and-runs.
Optional car insurance coverage for Chestermere drivers
While the four coverage types listed above are all mandatory, there are several optional coverage types available to Chestermere drivers. Depending on your driving habits or risk aversion, you may find that these optional coverage types provide additional peace of mind on the road. If you’re interested in learning more about optional insurance coverage for Chestermere drivers, keep reading:
Collision coverage protects the policyholder if they get into an accident with another vehicle or object on the road, no matter who is at fault for the accident. Under the collision coverage section of your policy, you can receive compensation to help pay for any property damage that resulted from the accident, such as a damaged car in need of repair.
Comprehensive coverage, as the name suggests, helps protect Chestermere drivers against a wide range of unforeseen events on the road. Though standard auto insurance coverage in Alberta provides a certain degree of protection against collisions, it does not protect motorists from other incidents, such as theft, vandalism, water damage, and fire. Meanwhile, comprehensive coverage can protect you against these events and more.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among Chestermere drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.
Note: coverage varies by province.
Saving money on Chestermere auto insurance has never been easier
Why spend more when you can spend less? Luckily, there are several ways that Chestermere drivers can save money on auto insurance. From installing winter tires on their vehicles to bundling multiple policies together, the experts at BrokerLink have put together the following list of tips on how Chestermere motorists can get cheap car insurance:
Increase your deductible
A rule of thumb within the insurance industry is the higher your deductible, the lower your premium. Essentially, the more money you are willing to take on, the less your car insurance will cost. A deductible is the amount of money you are responsible for paying towards an insured loss.
The average car insurance deductible in Alberta is $500. Therefore, to reduce the cost of your auto insurance policy, you may wish to consider raising your deductible to $1,000 or more. Do you have questions about how insurance deductibles work? Contact BrokerLink for help understanding the terms of your car insurance policy.
Choose annual over monthly payments
Paying for your Chestermere car insurance policy annually rather than monthly will almost always save you money. This is because most insurance providers charge an administrative fee for monthly payments, which means that paying monthly ultimately costs you more money than paying annually.
Insure multiple vehicles together
If your household has more than one car, insuring them together can save you money. Purchasing multiple car insurance policies at once from the same provider can save you between 15% and 20% per policy.
Combine different insurance policies
Did you know that bundling multiple insurance policies together can save you money on car insurance? That’s right, the more insurance you buy from a provider, the more likely you are to receive a discount.
So if you’re also looking for home insurance, business insurance, or insurance for a leisure vehicle like an ATV or boat, consider finding a provider that sells various types of insurance and buying it all from them. Doing so may save you up to 15% on each respective policy.
Install winter tires on your car
Safety matters. If you decide to install winter tires on your vehicle, insurance providers will take this into account and typically offer you a discount on your car insurance policy. Insurers understand that snow tires reduce your risk of getting into an accident during the snowy, icy winter months, and they will reward you accordingly. In Alberta, discounts vary by provider but Chestermere drivers can save up to 5% on insurance.
Attend driving lessons
Enrolling in an approved driving school in Alberta can also reduce your car insurance premium. For young drivers, whose insurance premiums are typically the highest, attending driving school is one way to save money on their insurance policies. Insurers understand that driving schools produce safer, more responsible drivers, which is why they offer them a discount.
Compare Chestermere car insurance costs with a BrokerLink broker
Save time and money by shopping for car insurance with the help of a Chestermere insurance broker. From obtaining quotes to reviewing coverage options on your behalf, we do the work to find the right policy for you. BrokerLink has been in business for over 30 years so we know the ins and outs of the industry and can help you find a policy that’s right for you.
BrokerLink’s insurance advisors have the resources and expertise to find the most comprehensive coverage at the most affordable price. Lastly, another benefit of working with an insurance broker from BrokerLink is brokers work independently of insurance providers in Canada.. This allows us to put our clients’ needs above all else.
Get in touch for a free Chestermere car insurance quote
Want to learn more about Chestermere auto insurance? BrokerLink’s expert brokers can provide more information on auto insurance and provide you with a free quote. You can also use our online tool to request a free quote. Answer a few basic questions and you’ll receive an accurate and competitive car insurance quote in minutes.
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