Your Guide to Alberta Car Insurance in 2024
Do you have a good driving record? Alberta drivers with good records will be rewarded with a limited increase on their car insurance premiums in 2024.
As of Jan. 1, Albertans with good driving records will have their car insurance premiums capped at 3.7 per cent, which was the inflation rate in September 2023.
An Alberta driver with a good record is everyone except those who have:
- Any at-fault accidents in the last 6 years
- Any criminal code traffic convictions in the last 4 years
- Any major traffic convictions in the last 3 years
- More than one minor traffic conviction in the last 3 years.
Did you know? Insurance companies are required to provide the option for most Albertans to pay for their car insurance premiums through payment plans.
Rates paused earlier in 2023
Earlier in 2023, rate increases for private passenger vehicles were paused until the end of the year to make car insurance more affordable for Albertans. The freeze was imposed in January by the provincial government to help Alberta drivers, who pay among the highest car insurance premiums in Canada.
Some drivers may still have experienced Alberta rate increases on their renewals in 2023 due to previously approved rate changes, changes to their driving records such as at-fault claims, or due to a change of address or a different vehicle.
Reduced driving during the COVID-19 pandemic increased profits for car insurance providers, exceeding the benchmark set by Alberta’s insurance regulator — the Auto Insurance Rate Board.
How to save on your Alberta car insurance in 2024
1. Bundle your Alberta home and car insurance
When you bundle your Alberta car and home insurance with Western Financial Group, you can get a discount and it’s an easy way to cut costs without cutting coverage.
Do you have more than one car? If they’re insured under the same policy, you can save money on your car insurance with a multi-vehicle discount.
Do you have a motorcycle, snowmobile, ATV, or recreational vehicle (RV)? You can bundle your toys with your car and home insurance to save, but you need to have car insurance to bundle everything together for a multi-product discount.
If you’re an Alberta renter, you can bundle your renter's insurance with your car insurance to get a discount.
Don’t be confused if you see bundling referred to as a multi-policy or multi-product discount.
2. Yearly kilometres
If you don’t drive much, you could save money on your Alberta auto insurance. Some insurers define low-mileage drivers as people who drive fewer than 10,000 kilometres a year.
If you don’t drive much, you may fall into this category and get better rates based on your kilometres driven per year.
3. Your deductible
Your deductible is the amount of money you are responsible for paying out-of-pocket before your insurance company covers the costs of an accident you’ve been in.
If you choose a higher deductible, or if you raise it when your policy renews, you could substantially lower your Alberta car insurance premium to save. That’s because you are agreeing to be responsible for a larger part of any potential claim costs.
While you’re hoping to stay accident free, make sure that you can financially handle your higher deductible.
If you have a car that’s more than 10 years old, you may want to reduce your deductible because your car is likely only worth a few thousand dollars.
4. Soft credit check
A soft credit check will allow your Western Financial Group car insurance expert to give you the best price for your Alberta car insurance. It is a factor that determines the level of discount available to you to save on your car insurance.
A soft credit check looks at the information in your credit report, but it does not impact your credit score.
5. Type of vehicle
Higher-end car models that require specialized parts and labour cost more to insure than a popular model with basic and parts.
6. Claims free
The longer you’re claims-free, the more you can save. You’ll get the most out of saving on your Alberta car insurance when you reach the maximum number of consecutive claims-free years.
7. Experienced driver: The more years you’ve been licensed, remained claims free and maintained continuous insurance, the lower your premium should be.
Check to see if you can get a discount or reduced premium if you are over 60 and have remained claims free.
Younger driver: Your student driver can save money on their car insurance premiums when they complete an accredited driver’s training course.
8. Use-based insurance (telematics)
Your Alberta car insurance rate should decrease if you are using usage-based insurance (UBI) because it allows your premiums to reflect the time more accurately that you spend driving and your driving habits.
UBI is optional and it captures such factors as how fast you accelerate, how often you brake, and how many kilometres you drive yearly.
While it rewards good driving with a rate discount, a surcharge can be added if you engage in risky driving behavior.
9. Premium payment options
You can apply for a Premium Financing Plan with Western. Our premium financing plan offers a flexible and convenient way to pay your insurance, allowing you to:
- Spread the costs over equal monthly payments
- Choose a withdrawal date that works for you
- Pay the remaining balance at any time
Talk to your Western Financial Group car insurance expert about incentives or discounts for installing anti-theft devices or other risk control measures in your car. Ask about possible discounts for snow tires.