Types of auto insurance in Okotoks, Alberta
There are so many different types of auto insurance out there that the hardest part of buying a policy is knowing which ones to choose. Thankfully, certain types of car insurance coverage are mandatory in Alberta, so that makes the decision a little bit easier. However, there are still many types of insurance, like comprehensive car insurance or collision car insurance, that are completely optional. This means you will need to assess your risk level, budget, and driving habits in order to determine which coverages make sense for you. Of course, a licensed BrokerLink insurance advisor can also help you with this. Continue reading to learn more about some of the most popular types of car insurance in Okotoks:
Comprehensive car coverage
Comprehensive car coverage is usually a choice for Okotoks drivers, meaning it isn’t required by law in Alberta. The only exception is if you lease or finance your car. In this case, buying comprehensive coverage may be obligatory according to the terms of your leasing agreement. No matter what, adding comprehensive car coverage to your Okotoks auto insurance policy makes a lot of sense.
This is one of the only types of coverage that will protect your vehicle from damage while parked. Specifically, it can protect your vehicle from damage caused by any of the named perils listed in your policy - the most common being wind, water, fire, theft, vandalism, falling objects, and natural disasters. While you can pick and choose between perils, you can also buy all perils coverage for even broader coverage.
Liability car insurance
Liability car insurance is one of the mandatory types of car insurance we mentioned earlier. This means that before you get behind the wheel in Okotoks, you will need to purchase a policy that contains third party liability insurance - and no less than $200,000 of it, to be exact. That’s right - the Government of Alberta mandates that all drivers must carry a minimum of $200,000 in liability car insurance at all times.
That said, many drivers choose to carry closer to $500,000 or $1,000,000 due to the fact that $200,000 may not be enough if you get into a major car accident. The purpose of third party liability insurance is to reimburse policyholders for the costs of an accident if they cause the accident. For example, if you rear end someone, liability coverage can help pay for any applicable vehicle repair bills, medical expenses, or legal fees.
Collision car coverage
Collision car coverage covers drivers if they get into accidents. Specifically, it can cover you for the cost of repairing your vehicle if it is damaged following an accident with another car, animal, or object on the road. When adding collision car coverage to any Alberta auto insurance policy, make sure that your coverage limit reflects the value of your car. Otherwise, if your car was totalled, your payout from the insurance company may not be enough to cover the cost of replacing it.
Accident forgiveness coverage
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. Thus, we recommend getting in touch with an Okotoks insurance broker at BrokerLink who can explain how accident forgiveness works in the province. Not all insurance policies have the same terms and conditions for this type of coverage. For instance, some auto insurance providers may only permit accident forgiveness claims if the collision was minor or if the main policyholder was the one who caused the collision, as opposed to another driver listed on the plan.
Uninsured motorist coverage
Uninsured motorist coverage is a second type of mandatory coverage in Okotoks. It comes into play if you are involved in an accident with a driver who is completely uninsured or underinsured, meaning they do not have enough coverage to pay for the cost of the accident. Uninsured motorist coverage can also be claimed if the driver is unidentified or anonymous, such as if you are the victim of a hit-and-run.
Accident benefits coverage
If you get into a car accident in Okotoks that results in bodily injury - or worse, death - accident benefits will help cover the costs. For example, accident benefits coverage, which is mandatory in Alberta, may reimburse policyholders for expenses like lost income, funeral fees, medical fees, rehabilitation, prescription medication, physical therapy, and more.
Loss of use coverage
Loss of use coverage is a final type of optional car insurance coverage that may be worthwhile for Okotoks drivers. It benefits drivers whose cars are damaged in accidents, as while their vehicles are being repaired, loss of use coverage will pay for alternate transportation arrangements. For example, let’s say your car is in the shop for a week. During this time, you will still need to get to work, run errands, and generally get around. Without a car, this may be difficult. Thankfully, loss of use coverage can pay for you to take public transit, rent a car, hire taxis or ride shares during this period. Please note that loss of use coverage is subject to a limit.
Factors that Alberta insurance companies consider when calculating auto insurance rates
Insurance companies in Alberta won’t just consider one factor, like your age or the car you drive, when determining your auto insurance rate. Instead, they will take into account a multitude of factors. Using a risk calculation formula that is unique to the company, they will calculate your risk level and assign your premium accordingly. A few of the main factors that will be used in the insurance company’s formula include:
- Where you live and commute
- Model, make, trim, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
Given that Okotoks car insurance rates are determined by such a wide range of factors, they can differ widely from driver to driver. As such, we recommend reaching out to BrokerLink to request a free quote if you want to find out how much car insurance in Okotoks will cost you. A BrokerLink insurance advisor can help you in minutes, providing you with a complimentary quote that is based on your unique needs and circumstances, making it as accurate as possible.
How can I drive safely in Okotoks?
If you want to become a better, safer driver in Okotoks, there are many habits you can adopt. From familiarizing yourself with and abiding by all traffic laws to slowing down when driving in inclement weather, check out this list of safe driving tips:
- Familiarize yourself with and obey all provincial, municipal, and local traffic laws in Okotoks
- Never drive over the speed limit
- Go slow if you are faced with adverse weather conditions, such as fog, snow, ice, or heavy rain
- You should also slow down if you are driving through a construction zone or an area with lots of pedestrians
- Install winter tires on your car to increase traction and reduce the odds of a collision in the winter
- Refrain from driving when tired or pull over as soon as you notice signs of drowsiness
- Protect yourself from sun or snow glare by using sunglasses and/or sun visors
- Focus 100% of your attention on the road, which means putting your smartphone away and refraining from eating, drinking, or smoking while operating your vehicle
- Leave two car lengths’ worth of space between yourself and the vehicles around you, including at intersections
- Use your signal every time you plan to turn or change lanes
- Improve visibility by cleaning all windows and mirrors regularly and using low or high beams when driving at night
Start saving on Okotoks car insurance today with these tips
Affordable car insurance can be your reality thanks to BrokerLink. We are always pleased to help our customers save money on car insurance in any way they can. From shopping around and comparing policies on their behalf to informing them about the various auto insurance discounts out there, the BrokerLink team is here to help. Keep reading for an exhaustive list of ways that Okotoks customers can minimize how much they spend on car insurance:
Reach out to multiple insurance companies for quotes
The key to never overspending on car insurance is to reach out to multiple insurance companies in your area and obtain quotes from each of them. This is the best way to discover which company offers the best coverage at the lowest price. To ensure that you’re fairly comparing each, make sure to select the same options when requesting a quote, such as the same deductible amounts and coverage types.
Once you have the quotes in hand, you can compare them side by side to figure out which one offers the best deal. Alternatively, if you don’t have time to do this yourself, you can ask a BrokerLink insurance advisor to do it for you. We have contacts at insurance companies all across Canada and would be happy to reach out and obtain quotes on your behalf. From there, we can evaluate the quotes and present you with the top options.
Bundle insurance policies together and save
Bundling insurance policies by purchasing more than one policy from the same company can result in significant car insurance savings. So if you’re an Okotoks resident that not only needs car insurance but also needs home insurance or insurance for a recreational vehicle like an ATV or snowmobile, be sure to ask about bundles. Some insurance companies may even let you buy multiple auto insurance policies if your household has more than one car that needs to be insured.
Choose the highest deductible amounts you can afford
Saving money on car insurance is easier than you might think - especially if you can afford a higher deductible amount. Choosing a deductible for your car insurance plan in Okotoks is a major decision and is not one that should be made lightly. After all, the deductible is the amount that you must pay before the insurance company covers the rest. This means that if you have a $1,000 deductible and you get into an accident, you will need to pay $1,000 before the insurance company will issue a payout to cover the remaining costs of repairs.
If you’re looking to cut car insurance costs in Okotoks, carefully consider your financial situation and choose a deductible that fits with it. The higher the deductible you choose, the lower your overall Okotoks car insurance premium will be, as insurers reward customers who take on more financial responsibility.
Speak with a licensed car insurance broker at BrokerLink about discounts
Another effective way of saving money on car insurance in Okotoks is by reaching out to an insurance broker at BrokerLink. Our team of experts knows the ins and outs of auto insurance in the area and can recommend a variety of car insurance discounts that may be available to you.
For example, some discounts that Alberta insurance companies offer drivers include telematics discounts, anti-theft device discounts, winter tire discounts, safe driving discounts, occasional driver discounts, hybrid or electric car discounts, multi-vehicle discounts, driver’s education discounts, and employment or education-based discounts. To find out if you are eligible for such discounts and what conditions need to be met to qualify, contact BrokerLink today.
Only select the coverage that makes sense for you
Just because all kinds of car insurance coverage exists doesn't mean it should be added to your policy. Not every type of car insurance coverage is designed for every driver. In fact, some, like collision or comprehensive coverage, won’t make sense for some drivers, especially those who drive cars of low value. Thus, we suggest thinking long and hard before adding coverage to your Okotoks car insurance policy.
If you want a professional opinion, ask a BrokerLink insurance specialist for help. They can give you an honest, unbiased answer about which coverages are most worthwhile for your needs.
We’re in your community
BrokerLink is part of the Okotoks community. We aim to provide Okotoks residents with top-notch insurance solutions while also making a difference in the community-at-large. We do this by getting involved in charity endeavours and local initiatives, like fundraising marathons or food banks. Find out more about our involvement in the community by contacting BrokerLink today.
Alberta Insurance Links
If you’re a member of a group or association, you may be eligible for more discounts.
At Okotoks BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, travel plans, 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 Okotoks FAQs
What is the average price of car insurance in Okotoks?
The average price of auto insurance in the province of Alberta is $1,500 for twelve months. Most car insurance plans have twelve-month terms. This works out to be roughly $125 per month for car insurance. That said, this is the provincial average, not the average in Okotoks specifically. Even among Okotoks drivers, rates will vary as they are based on so many factors, including age, gender, annual mileage, claims history, and more.
How much third party liability coverage do I need to drive in Okotoks?
You must have $200,000 in third party liability coverage to drive in Okotoks. If you have less than this amount, you will not be allowed to drive in the province, as third party liability coverage is mandatory. It is worth noting that the required $200,000 in liability coverage may not be sufficient for all drivers. For added peace of mind, some drivers may choose to up their liability coverage limits to $500,000 or $1,000,000.
Will my credit score impact how much car insurance costs in Okotoks?
Maybe. It depends on the insurance company, as each has its own risk calculation formula. Some insurance companies might include credit scores as part of this formula, whereas others will not. If your insurance company asks for your credit score, they are likely trying to gauge your financial responsibility. The stronger your credit score, the more responsible you will seem, and the lower your rates may be. Conversely, if your credit score is low, then you will seem less responsible, and your rates may be higher as a result. That said, your Okotoks insurance premium will never solely come down to your credit score. Even if your insurer assesses your credit score, it will be one of many factors they assess - and likely won’t be one of the most important ones.
Should I renew my car insurance policy in Okotoks or buy a new one?
Not sure whether to renew car insurance? The reality is that if you plan to keep driving in Alberta, then you need car insurance. However, whether to renew your existing policy or buy a brand-new one from a different provider is a difficult decision and the only person who can make it is you. To make the best decision possible, think about the cost of your existing plan, the coverage that’s included with it, and your recent experience with your provider. From there, reach out to other insurance companies to request free quotes and compare them to each other and to your current policy. This will give you an idea of what else is out there. Should you decide to buy a new policy instead of sticking with your current one, make sure that your new policy begins on the date that your last one ends. Otherwise, you will be dealing with an expired policy, and expired car insurance renewal can be trickier.
If you have any questions, contact one of our local branches.
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