Compulsory auto insurance in Lacombe
Car insurance is not optional in Alberta. On the contrary, it is mandated by law, which means all Lacombe drivers are legally required to have valid, up-to-date auto insurance at all times. And not just any car insurance will do.
Rather, for your Lacombe car insurance policy to be valid, it must feature specific types of coverage, including a minimum of $200,000 in third party liability coverage (though many drivers choose to purchase more).
Failing to purchase car insurance, letting your current policy expire, or buying insurance that does not meet the minimum requirements stipulated by the province can all lead to a severe fine and even jail time.
For a first offense in Alberta, uninsured motorists can be fined a minimum of $2,875 up to a maximum of $10,000. Even worse, failure to pay this fine can result in jail time ranging from 45 days to 6 months.
If caught driving without insurance a second time, you may be fined the minimum of $5,000, up to a maximum of $20,000. Again, refusal or inability to pay the fine can result in jail time, this time lasting anywhere from 60 days to 6 months.
To avoid the risk of fines and jail time, we recommend purchasing an adequate car insurance policy.
To help Lacombe drivers understand all there is to know about mandatory car insurance in Alberta, we’ve outlined the four types of coverage you are required to carry at all times. Compulsory car insurance in the province consists of four types of coverage: direct compensation, third party liability coverage, uninsured automobile coverage, and accident benefits coverage. To learn more about each, keep reading.
Third party liability coverage
Liability coverage is a crucial component of any Lacombe car insurance policy. This type of coverage offers protection if you are injured or your vehicle is damaged in an accident that you caused. Liability coverage can help cover the costs of medical expenses and vehicle repairs, as well as legal counsel and court fees if applicable. Alberta drivers are required to have policies that include $200,000 in third party liability coverage at all times.
If you get into a collision that you are not at fault for, direct compensation can help. Whether you suffered an injury or your vehicle was damaged, you can file a claim directly with your insurance company to receive compensation to cover the costs associated with the accident.
Uninsured automobile coverage
Uninsured automobile coverage, as the name suggests, protects you, as well as any passengers in your vehicle, should you get into an accident with an at-fault driver who is uninsured or underinsured.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, no matter which party is liable for said collision, accident benefits coverage can help cover the costs. While health insurance often pays for most medical expenses, it may not cover certain expenses such as prescription medications, physical therapy, or long-term rehabilitation. If this is the case, having a car insurance policy with accident benefits coverage will be helpful.
What factors affect Lacombe insurance premiums?
Insurance companies consider a variety of factors when calculating auto insurance rates. Although most drivers would prefer to pay less money for car insurance, some of the factors that determine your premium are ultimately out of your control, like your age and gender. To help Lacombe drivers understand how car insurance rates are calculated, we’ve put together this list of the most common factors affecting Lacombe insurance premiums today:
- Driving experience
- Driving record
- Type of vehicle you drive
- Claims history
- Annual mileage
- Prior insurance coverage
- Your deductible
- Local laws
- How you use your vehicle
- Marital status
It’s worth noting that insurance brokers like BrokerLink are not insurance providers and therefore, we do not set your auto insurance rate. That said, our friendly and knowledgeable insurance advisors are always on hand to provide accurate, competitive quotes and search the market on your behalf to ensure you find the best coverage for the most affordable price.
Tips for saving money on car insurance
While purchasing auto insurance is always a smart choice, there’s no denying that it can be costly. On average, car insurance in Alberta costs drivers $1,300 each year. Luckily, there are ways to minimize how much you pay. So if $1,300 is above your budget, follow the tips below outlining how to find cheap car insurance in Lacombe:
- Choose annual over monthly payments
- Purchase car insurance for more than one vehicle (savings of up to 20%)
- Bundle insurance policies (i.e. buy home insurance + car insurance or travel insurance + car insurance etc…) and purchase them from the same provider (savings of up to 15%)
- Purchase a hybrid or electric vehicle (savings of up to 5%)
- Increase your deductible
- Enrol in driving school (for young drivers)
- Partner with a trusted broker
3 tips for young drivers in Lacombe
Driving for the first time can conjure up a mix of emotions. While freeing, it can also be intimidating and stressful. To help new young drivers in Lacombe adjust to the road, we’ve put together some of our top safe driving tips for young drivers:
Space is your friend
Always give yourself extra space on the road. Space equals time, and the more time you have to react to a situation, the less likely you are to get into a collision. The general rule of thumb is to leave two car lengths between you and the vehicle in front of you at all times. This distance should be even greater when travelling at high speeds, such as on a highway, or when driving in inclement weather like rain, snow, or fog. You should also remember to give yourself extra space when driving at night or in reduced visibility.
A piece of advice for drivers of all ages? Slow down. Driving slowly means driving safely. The slower and calmer you drive, the better off you will be. Conversely, if you are constantly rushing and speeding, your odds of getting into an accident skyrocket. Always drive the speed limit (or below it in inclement weather or when driving through a construction zone) and take your time when accelerating, braking, parking, and turning.
Be aware of your surroundings
One of the best driving habits young drivers can develop is being aware of their surroundings. To do this, you must keep track of all cars and hazards on the road. Check your rear-view and side mirrors regularly, scan all lanes ahead of you and keep an eye out for traffic signs, construction zones, and any other road hazards.
Get in touch
Interested in learning more about Lacombe car insurance? BrokerLink has got you covered.
As one of the leading brokerages in Alberta, our team of insurance advisors are experts in their field and will work tirelessly to find the perfect car insurance policy for you and your family.
Get in touch today by giving us a call, contacting us online, or visiting us in person at one of our many locations throughout Alberta.
We also invite Lacombe drivers to take advantage of our free auto insurance quotes. We offer free quotes to all Alberta residents.
What are you waiting for? Kickstart your car insurance journey by partnering with BrokerLink today. We can’t wait to meet you!
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