Compulsory car insurance in Alberta
Auto insurance is regulated provincially, and every car registered in the province of Alberta must be insured and proof of the necessary insurance coverage must be provided.
What can happen if you drive without auto insurance?
Since car insurance is a legal requirement in Alberta, uninsured motorists can face serious consequences if caught.
The first time you are caught driving without car insurance in Alberta, you can be fined anywhere between $2,875 and $10,000. Failure to pay this first offense fine can result in jail time of 45 days to 6 months.
For a second offense, the minimum fine is $5,000, but it goes up to $20,000, and failure to pay the fine can also result in jail time between 60 days and 6 months.
Most people will agree that driving without insurance in Lethbridge is simply not worth the risk.
How auto insurance rates are calculated in Lethbridge
There are a number of factors that determine the cost of your insurance premium in Lethbridge. From the exact location of your home and workplace to your age, marital status, and annual mileage, keep reading to discover some of the top factors that will affect how your car insurance rate is calculated.
Type of Car
Believe it or not, the make and model of your vehicle can play a role in determining your car insurance rate. This is because insurance providers believe there is a direct correlation between the type of car and the likelihood of it being stolen. They must also consider how much your car would cost to repair or replace, should it be damaged or stolen. In general, the newer, more expensive the car, the higher the insurance rate will be. The one exception to this is if you have a new car that is equipped with multiple safety features and anti-theft devices.
According to insurance providers, certain age groups may be at greater risk of getting into an accident, for example young drivers with limited driving experience.. Ultimately, if the data shows that someone of your age is more likely to get into an accident on the road, you may have to pay a higher premium.
How often you drive your car can also impact your auto insurance rate. If you do not drive your car frequently (for example, you only drive it on the weekends), then insurance companies may consider you to be less at risk of getting into an accident and lower your insurance premiums accordingly.
On the flip side, if you are constantly driving or frequently drive overnight and on highways, the odds of getting into a collision increase, along with your insurance premiums.
Car insurance is regulated at the provincial level, with each province responsible for setting a minimum requirement for coverage, for example, in Alberta, drivers are legally required to carry $200,000 in third party liability coverage. However, many Lethbridge motorists will choose to purchase a policy with a greater amount of coverage.
Where you live, as well as where you work (if you drive your car to and from your workplace), is a major factor in calculating your car insurance. As mentioned above, each province sets the general regulations on car insurance, however, given the vast size of most Canadian provinces, rates can also vary within them. For example, your premiums may be higher if you live in a high-density urban area, whereas they may be lower if you live in a rural area.
Another geographic factor that may influence how your Alberta auto insurance rate is calculated is if you live in a part of the province prone to climate related incidents, such as floods.
Some insurance providers use marital status to determine the cost of car insurance. Insurance companies rely on data, so if the research shows that unmarried drivers are more accident-prone than married drivers, then unmarried drivers may have to pay a higher insurance premium.
Your driving history matters
While the factors above are crucial to determining the amount you pay for car insurance, there is one other factor worth discussing: driving history. Your driving history is arguably the most important variable when it comes to car insurance.
First off, the more driving experience you have, the better. If you are young and have only been driving for a short time, your insurance rates are likely to be higher because you lack experience.
However, experience in and of itself does not equal lower insurance premiums. In order to qualify for the best possible car insurance rate, you should aim to have a clean driving record. A history free of tickets, accidents, or DUIs will convey to the insurance providers that you are a safe and responsible driver who drives the speed limit and drives defensively (as opposed to offensively).
At the end of the day, Lethbridge motorists with stellar driving records are far more likely to receive a lower insurance rate than those with a history of speeding or accidents. It’s worth noting that having an accident on your record, whether you were ultimately deemed at fault for the accident or not, can result in a higher premium..
Tips for saving money on Lethbridge car insurance
At BrokerLink, we believe that car insurance should never break the bank. That is why our team of insurance advisors are experts at finding quality insurance policies within your budget. To help ensure you get the best possible rate on your Lethbridge auto insurance, we’ve compiled some of our top tips to lower your insurance rate. Saving money on Lethbridge car insurance just got a whole lot easier.
Invest in an environmentally-friendly vehicle
Being good to the environment pays off. Purchasing a hybrid or electric vehicle will save you money at the gas pump and on auto insurance. Several insurance providers in Alberta now offer discounts to owners of eco-friendly cars. So if you’re thinking of buying a Tesla, now may be the time.
Insure vehicles together
If you own multiple cars, you may wish to consider insuring them together. Doing so may save you between 15% and 20% on each car’s respective auto insurance.
Combine multiple insurance policies
If you’re looking to purchase several types of insurance (e.g. car insurance, in addition to business insurance, home insurance, or leisure vehicle insurance), buying them from the same provider at the same time can save you money. Many insurance companies provide a discount (sometimes a significant one of up to 15%) to clients who purchase multiple policies at once.
Compare quotes with the click of a button
With so many car insurance providers out there, it can be difficult to find the policy that’s right for you. But with the help of a trusted broker, you can easily shop around, compare quotes, and ultimately find your perfect policy.
Unlike auto insurance companies, insurance brokerages like BrokerLink work for the customer. Finding the best possible car insurance plan within your budget is our top priority, and we will work tirelessly until we do just that.
Our customer-first approach to car insurance coupled with our unique expertise makes working with BrokerLink a no-brainer. From the moment you contact us, one of our trusted insurance advisors will be by your side to answer your questions, explain the coverage options available to you, and match you with a policy.
Get a free Lethbridge auto insurance quote today
If you require car insurance and are looking for the best possible rate, BrokerLink can help. As a quality insurance brokerage, we do the work for you, scouring the internet for the most comprehensive coverage at the most affordable price possible, all to find a policy that meets your needs.
Our reliable team of insurance advisors is always on hand to help, whether you contact us online or wish to visit one of our locations in person. To get started, one of our staff members will ask about your location, driving history, age, marital status, annual mileage, and more in order to provide you with the most accurate and competitive rate possible. They can also give you the inside scoop on any discounts and benefits you’re eligible for so that you never pay more than necessary for your car insurance.
BrokerLink is pleased to offer free car insurance quotes to all Lethbridge drivers. What are you waiting for? Contact us today to learn more about your auto insurance options and receive a 100% obligation-free quote.
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