Alberta Auto insurance news and trends
Alberta has some of the highest car insurance premiums in all of Canada. To combat this, the government has been working on several reform solutions:
Alberta auto insurance premium freeze
To combat inflation and increasing cost of living, the Alberta government has put a freeze on rates for private vehicles until the end of 2023.
However, some drivers could see increases upon renewal if there was a change in their driving record, moving to a new address or a change of vehicles.
Alberta car insurance premium payment plans
The government is working on a long-term solution to make auto insurance premiums more affordable.
The government is requiring insurers to allow people to pay premiums through a payment plan. This spreads out the cost rather than forcing them to pay a lump sum when a policy is issued.
2024 Alberta car insurance rate increase cap
Starting in 2024, drivers with a good driving record will only see their rates increase to account for inflation. The September 2023 Alberta inflation rate will be used - 3.7%. This means good drivers can only see their rates increase by a maximum of 3.7% to account for inflation.
You will not qualify if you have major convictions, tickets, or criminal code traffic violations on your driving record.
How do Alberta auto insurance premiums compare to other provinces?
Auto insurance in the province is higher than in most provinces. Based on the Insurance Bureau of Canada numbers, only Ontario and British Columbia have higher premiums.
Here’s a comparison of how Alberta car insurance premiums compare to the rest of Canada:
Province/Territory |
Avg annual premium |
Monthly rate |
Difference from Ontario average |
Monthly payment difference |
Higher/ Lower than average |
Alberta |
$1,578** |
$132 |
|
|
|
BC |
$1,832 |
$153 |
$254 |
$21 |
Higher |
Ontario |
$1,737* |
$145 |
$159 |
$13 |
Higher |
Saskatchewan |
$1,274 |
$106 |
$304 |
$25 |
Lower |
Newfoundland |
$1,251 |
$104 |
$327 |
$27 |
Lower |
Manitoba |
$1,200 |
$100 |
$378 |
$32 |
Lower |
Nova Scotia |
$1,066 |
$89 |
$512 |
$43 |
Lower |
Northwest Territories |
$1,050 |
$88 |
$528 |
$44 |
Lower |
Nunavut |
$1,033 |
$86 |
$545 |
$45 |
Lower |
New Brunswick |
$1,014 |
$85 |
$564 |
$47 |
Lower |
Yukon Territories |
$889 |
$74 |
$689 |
$57 |
Lower |
Prince Edward Island |
$885 |
$74 |
$673 |
$56 |
Lower |
Quebec |
$857 |
$71 |
$721 |
$60 |
Lower |
Source: Insurance Bureau of Canada
Alberta car insurance premiums by city
Where you live within the province is also a determining factor. You’ll pay more for insurance if you live in a larger city. For example, car insurance in Calgary and Edmonton have higher rates than other smaller towns.
We gathered driver quote data to see how costs differ by location. Here’s an overview of the average premium based on the city:
City |
Average premium |
Monthly payment |
Alberta |
$2,626 |
$219 |
Edmonton |
$2,667 |
$222 |
Calgary |
$2,734 |
$228 |
Airdrie |
$2,669 |
$222 |
Fort McMurray |
$2,446 |
$204 |
Grande Prairie |
$2,685 |
$224 |
Red Deer |
$2,189 |
$182 |
Lethbridge |
$2,358 |
$197 |
Fort Saskatchewan |
$2,718 |
$227 |
Cochrane |
$1,786 |
$149 |
Leduc |
$2,213 |
$184 |
Medicine Hat |
$1,501 |
$125 |
Lloydminster |
$2,116 |
$176 |
Alberta car insurance by driver type and record
We collected ThinkInsure customer quote data from January to October 2023 to determine how quotes differ based on driver type, demographics, and driving record. Here are the results in the table below:
|
Average premium |
Monthly payment |
Driver type |
Young (25 and under) |
$3,268 |
$272 |
Middle age (25 - 50) |
$2,667 |
$222 |
Mature/senior (50+) |
$1,798 |
$149 |
Demographics |
Male |
$2,702 |
$225 |
Female |
$2,477 |
$206 |
Married |
$2,560 |
$213 |
Single |
$2,709 |
$225 |
Driving record |
Clean driving record |
$2,626 |
$218 |
1 ticket with past 3 years |
$2,855 |
$237 |
1 accident in 3 years |
$2,988 |
$249 |
1 cancellation in 3 years |
$2,661 |
$221 |
1 suspension in 3 years |
$2,881 |
$240 |
Alberta car insurance by vehicle brand
Vehicle brand is another key factor that can influence your auto insurance payments. We compared customers' vehicle brand data to identify which brands are more affordable for insurance. Here are the results:
Vehicle |
Premium |
Monthly payment |
Ford |
$2,493 |
$208 |
GMC |
$2,314 |
$193 |
Honda |
$2,711 |
$226 |
Chevy |
$2,428 |
$202 |
RAM |
$2,586 |
$216 |
Toyota |
$2,621 |
$218 |
Nissan |
$2,701 |
$225 |
Jeep |
$2,323 |
$194 |
Mazda |
$2,533 |
$211 |
Subaru |
$2,487 |
$207 |
Lexus |
$2,635 |
$220 |
Tesla |
$3,258 |
$272 |
Hyundai |
$2,860 |
$238 |
**