Compulsory car insurance coverage in Drumheller
Alberta drivers know that car insurance is mandatory in the province and across the country,but many don’t know exactly what that means. What does compulsory car insurance look like in Drumheller? Keep reading to discover the four types of coverage you are required to have as a Drumheller motorist. And remember, if you fail to purchase a valid auto insurance policy in Alberta, you will be in breach of the law.
Third party liability coverage
Liability insurance is required for all Drumheller drivers - $200,000 of it, to be exact. This type of coverage can protect you if you get into an accident that you cause and it results in bodily harm or property damage to another.
Accident benefits coverage
Accident benefits coverage can reimburse policyholders for medical expenses if they are involved in an accident that results in bodily injury. Note that accident benefits can reimburse policyholders for medical expenses even if it was someone else involved in the accident that was injured.
Direct compensation - property damage coverage
Direct compensation - property damage (DCPD) coverage can pay for the cost of repairing your vehicle if it is damaged in a car accident that you did not cause. This coverage allows your insurance company to offer coverage for the repairs on your vehicle, allowing you to deal with your own company rather than a third party company.
Uninsured motorist coverage
Uninsured motorist coverage will cover you if you find yourself in an accident with the following type of driver:
- An uninsured driver, i.e. one that does not have any form of auto insurance coverage.
- An underinsured driver, i.e. one who does not have enough car insurance to pay for the cost of the damages.
- An unidentified or anonymous driver, i.e. one whose identity you do not know or is unknown, unidentified drivers are typically those who flee the scene after the accident, e.g. a hit and run.
Optional auto insurance coverage in Drumheller
The types of auto insurance mentioned above are not the only coverages available to Alberta drivers. Insurance companies offer all types of additional coverage options, like collision coverage, comprehensive coverage, and accident forgiveness coverage. We break down some of these popular coverage types below. If you want to add any of these to your Drumheller car insurance policy, make sure to let your broker know:
Collision car coverage will cover you if your car is damaged in a collision, whether you caused the collision or not. The collision can also have been with another vehicle or an animal or object on the road. Collision coverage is optional for most drivers. However, it might be required if you lease or finance your car.
Comprehensive car coverage can protect your car from property damage in several circumstances. For example, if your car is broken into and stolen or it is damaged in a fire or windstorm, comprehensive car insurance can help pay to replace or repair it. With comprehensive coverage, you are covered against damage caused by the risks or perils listed in your policy. Some of the most common risks named in Alberta auto insurance policies are fire, theft, vandalism, water damage, falling objects, and windstorms, though you might be able to add others to the policy if possible. You can also purchase all perils coverage, which combines collision and comprehensive coverage for broader protection under a single deductible instead of two separate deductibles. As is the case with collision coverage, comprehensive coverage is usually optional but could be mandatory if you lease or finance your car.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Drumheller 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 and eligibility varies by province.
Factors that influence Drumheller car insurance rates
Car insurance rates vary significantly, even among people who live in the same place. Thus, not all Drumheller motorists pay the same amount for car insurance. So many factors go into determining rates, thus rates are rarely the same between two drivers. In Alberta, insurance companies will consider the following factors when calculating your auto insurance premium:
- Where you live (and where you regularly commute)
- Model, make, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
Given how many different factors are considered by insurance agents, we recommend contacting BrokerLink for a free quote. Free car insurance quotes can give you an accurate idea of how much you can expect to pay for auto insurance.
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Find cheap insurance in Drumheller
Save money on your Drumheller car insurance policy by following these tips, brought to you by the BrokerLink team:
- Only purchase coverage that suits you and your vehicle and update it yearly as needed.
- Choose high deductible amounts if you can afford them.
- Pay your insurance bills on time and speak with your provider if you are at risk of falling behind.
- Shop around and compare policies before buying one.
- Consult with a BrokerLink insurance broker in Drumheller for help buying car insurance.
- Register for an approved driver’s education course in Alberta.
- Keep your annual mileage low by driving less and taking other modes of transportation instead, like public transit.
- Considering installing a telematics device, anti-theft device, or winter tires on your car to qualify for different kinds of insurance discounts.
- Speaking of insurance discounts, ask your broker about the other types of discounts out there, like employment, organization, or education-based discounts.
- Drive safely by obeying the rules of the road and keeping your record clear of infractions, and you could be eligible for a safe driver discount.
- If you are buying a new car and want to keep insurance rates low, consider buying a hybrid or electric car, one with a high safety rating, and one with a low rate of theft.
- Buy multiple auto insurance policies at the same time or combine different insurance products, like car insurance with home or business insurance, to benefit from the savings that come with insurance bundling.
Driving tips for Drumheller motorists
Whether you’re just learning to drive or simply want a refresher, it’s always a good idea to drive as safely and responsibly as possible. Check out the following list of safe driving tips and contact BrokerLink for even more road advice:
Check the weather before leaving home
First, trip planning is essential anytime you hit the road. A key part of trip planning is checking the weather forecast to make sure the conditions are favourable toward driving. If you notice any inclement weather, like a thunderstorm, heavy rain, or a blizzard, reconsider your travel plans. It’s also a good idea to search your preferred route online to see if there are any accidents or construction zones you need to be aware of.
Remain vigilant and alert at all times
Being on alert while driving is crucial. With so many possible distractions and hazards, it is of the utmost importance that you remain vigilant. This means putting away your phone and focusing fully on the road. If you notice yourself growing tired, restless, or distracted, pull over or head home.
Follow all Alberta traffic laws
Chances are, you familiarize yourself with Alberta’s traffic laws when you signed up for your driving exams. But unless you took your driving test recently, you may have forgotten a lot of these rules. Thus, we recommend re-learning some of these rules, especially those related to highway driving and speed limits. Failing to abide by local traffic laws can result in demerit points, fines, and more. Traffic laws exist for a reason - to keep yourself and all other drivers safe.
Driving slow is driving safe
Speeding is incredibly dangerous. There is a reason that all streets have speed limits. The faster you drive, the more at risk you are for getting into an accident - and a serious one, at that. So make sure that you always obey the speed limit. There are even times when you should drive below the speed limit, such as if you are driving in inclement weather, like fog or snow, or in construction zones.
Signal your intentions to other drivers
Cars are equipped with signals for a reason. Using them can prevent an accident. Whether you want to change lanes or make a right-hand turn, always signal to ensure that others around you are aware of what you are doing. This way, they can adjust their driving to keep everyone as safe as possible.
Stick to the right lane
Driving in the right lane is a great habit to get into. Generally speaking, the right lane or lanes are for driving and the far left lane is for passing. Only drive in the left lane if you have a reason to pass someone. Otherwise, stick to the right. If you are on a highway, make sure to give merging vehicles the right of way and slow down to let them in if necessary.
Visibility is key
One final tip for Drumheller drivers is to increase visibility in any way you can. If you’re driving in the winter, make sure to clear your windows and windshield of snow, slush, fog and salt before backing out of the driveway. If you are driving on a sunny day or after a fresh snowfall so there’s lots of glare, remember to wear sunglasses while driving or use your sun visor.
We’re in your community
BrokerLink is guided by our core values, one of which is community. While we always aim to provide top-tier insurance services, this isn’t all that we do. We have a responsibility to give back to the communities we operate in, which is why you can find us helping raise money for local food shelters, participating in charity marathons, and more. Learn more about how we contributed to the Drumheller community by getting in touch today.
Local Alberta insurance links
If you’re a member of a group or association, you may be eligible for more discounts.
At Drumheller BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible.
You can reach us by phone, email, or in person by visiting any of our locations across Alberta. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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Auto insurance Drumheller FAQs
Should I renew my Drumheller car insurance policy?
Deciding whether to renew car insurance might not be easy. It takes time to assess whether your current policy still works for you. Consider if your current plan has the coverage you need and still offers the most competitive rate. If it doesn’t, you may wish to shop around and find a new policy from a different provider. However, if you decide to renew your Drumheller auto insurance policy, you can do so by contacting your insurance provider or broker and letting them know that you would like to renew. From there, they will inform you of the next steps, but renewal processes are typically quite quick. The only exception to this is for expired car insurance renewal. If you want to renew an expired auto insurance plan, the process might take a bit longer, as the insurance agent will likely need to recalculate your insurance premium. Expired car insurance can lead to a gap in coverage, which may result in increased auto insurance rates.
Do collisions result in higher car insurance rates in Drumheller?
They can, though it varies between policyholders. If you did not cause the collision you were involved in, then your rates are unlikely to change. However, if you caused the collision, then the odds are high that your premium will go up the next time your policy is renewed. Collisions stay on Alberta car insurance records for roughly six years, which means you may experience increased rates during this time. If your Drumheller insurance policy contains accident forgiveness coverage, then your rates will stay the same, even if you cause the accident. Keep in mind that accident forgiveness only applies to your first at-fault accident.
How can I save money on car insurance in Drumheller?
You can save money on car insurance in Drumheller by bundling insurance policies, installing winter tires on your car, paying your insurance bills on time, choosing to pay for your policy yearly instead of monthly, buying a car that is eco-friendly and/or has a high safety rating, installing a telematics device or anti-theft device on your car, minimizing how much time you drive, and driving safely at all times.
Can I buy Drumheller auto insurance without a driver’s licence?
No, you cannot. Your driver’s licence is one of the first things that an Alberta insurance broker will ask for when you are purchasing car insurance. You are required to have a valid driver’s licence before you can purchase auto insurance.
What are the penalties for uninsured driving in Drumheller?
The penalties for driving without car insurance anywhere in Alberta include thousands of dollars worth of fines, the suspension of your driver’s licence, vehicle impoundment, and even jail time in the event that you are unable to pay the fines levied.
Where can car insurance be purchased in Drumheller?
The two most common places to purchase car insurance in Drumheller are from an insurance company or an insurance broker. The insurance industry is highly regulated in Drumheller, so both options are safe and secure. Whether you decide to purchase coverage from an insurance agent or an insurance broker, you can likely do so over the phone, in person, or online from the comfort of your own home. Beyond purchasing an insurance policy, you can also contact your local insurance agent or broker to request a free quote or ask any questions you have about how car insurance works in Alberta.
What is the average cost of car insurance in Drumheller?
The average cost of car insurance in Alberta is roughly $1,500 per year. However, this doesn’t mean that your policy will cost $1,500. It could be more or less depending on many circumstances, like your age, gender, driving record, home address, the type of car you drive, and the coverages, limits, and deductibles you choose to add to your policy. Since car insurance rates range widely, it is strongly recommended to obtain a free insurance quote from an insurance broker or agent if you want to gain a better understanding of how much insurance will cost you.
Do I need third party liability insurance in Drumheller and if so, how much?
Yes, Drumheller motorists are required to purchase several types of car insurance coverage, and one of them is third party liability coverage. Specifically, you must have $200,000 worth of liability coverage. That said, $200,000 is on the lower end of coverage limits, so many drivers choose to purchase more than the minimum coverage requirement.
Does credit score matter for Drumheller car insurance?
It can, but it doesn’t always matter. It ultimately depends on the insurance provider. Some insurance providers will ask to see your credit score as a way of assessing your risk. Although you might not think credit scores have anything to do with driving or car insurance, they are an indicator of financial responsibility. From an insurance company’s perspective, if you have a high credit score, then this means that you have minimal debt and pay your bills on time. This makes you less of a risk, and as such, they may be more likely to offer you coverage, and at a lower rate, at that. Conversely, if you have a low credit score, this could be a sign that you are not very financially responsible, which in their eyes, could make you less likely to make your insurance payments on time. Thus, credit scores can help insurance companies understand your risk level and decide whether to offer you coverage and if so, what rate to offer it at.
If you have any questions, contact one of our local branches.
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