According to the latest data released by the Insurance Bureau of Canada, Albertans pay an average of $1,316 per year for their car insurance premium, equivalent to a monthly payment of $109.67.
Alberta operates on a private car insurance system, which encourages competitive rates between insurance providers and helps keep prices down. The cost of your premium depends on several factors that each insurance company in Edmonton considers when calculating your rate.
How is the cost of car insurance calculated in Edmonton?
- The type of vehicle you’re insuring – Insurance companies consider the cost of replacement parts for your car. Typically, a sports car or luxury vehicle will cost more to repair, which will reflect in your premium. You can expect to pay higher premiums for specific vehicles, such as sports and luxury model cars than you would with a middle-class car.
- Where you live – Drivers who live in a large city like Edmonton typically pay more for auto insurance than those who live in rural areas. Some insurance companies will also base your premium on the number of insurance claims in your neighbourhood and whether you park your car in a garage or on the street.
- Your age – Young drivers are statistically at a higher risk of being involved in a collision and are charged higher premiums for the first few years of driving.
- Your driving record – Maintaining a claims-free record will help reduce your rates. On the other hand, even just one at-fault accident in Alberta can increase your premium significantly. Other driving convictions will also greatly impact your rates and your ability to obtain insurance, depending on the severity of the conviction.
- How much you drive – If you drive your vehicle occasionally or for a short commute, your premium will be lower than a driver who clocks in many kilometres a day.
- The type of coverage you choose – Accident Benefits and Third Party Liability insurance is mandatory in Alberta. You can choose additional coverage, such as Comprehensive and Replacement Cost that will increase your rates. Your cost will also depend on the deductible amount you choose. A higher deductible means a lower monthly payment.
How can I get the cheapest car insurance in Edmonton?
It’s tough to identify which car insurance company will provide you with the cheapest premium because each company assesses risks differently. Getting a fair price will require a few minutes on your part to get quotes, ask questions, and compare rates and policies.
Insurance brokers representing several companies can shop competitive rates and provide you with the policy that gives you the most value for your money.
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