10+ Cheapest Alberta Car Insurance Options (2024)

Alberta is the third-most expensive province for car insurance in Canada. However, that doesn’t mean you need to break the bank to find dependable insurance.

If you are looking for the cheapestcar insurance Albertadrivers can buy, we can help you. We evaluated the performance of over two dozen auto insurers on different parameters — from affordability and availability to customer experience and financial strength — and ranked them accordingly.

We have also provided a separate list of most affordable car insurers in five most populous cities in Alberta. Last but not least, we have shed light on some important aspects of Alberta insurance laws and shared tips that can help you save up to 60% on your next car insurance.

The Best and The Most Affordable Car Insurance in Alberta

• Desjardins – The Overall Winner
• The Personal – The Runner Up
• Intact – The Best for Ridesharing & Carsharing
• Sonnet – The Best Online Tools
• The Co-Operators – The Best Customer Service

The Overall Winner: Desjardins

Desjardins, the fourth-largest auto insurance company in Canada, certainly lives up to its reputation of an affordable car insurance provider in Alberta. At $129 per month, it is thecheapest insurancecompany inAlberta. So if you are looking for wallet-friendly auto insurance, count on Desjardins to deliver a bargain.

However, Desjardins is not just a good fit for price-conscious buyers. It is also a great choice for newer car owners, thanks to its 5-year new car replacement coverage. If you total your vehicle within 5 years of ownership, this coverage will pay you the value of a brand new vehicle of the exact make and model as yours, minus the deductible.

Desjardins is in pretty good shape financially as well. It received the excellent “AA1” rating from Moody’s and solid “A+” from S&P. Given that it is among the largestvehicle insuranceproviders inAlberta, this doesn’t come as a surprise. This result shows that you can trust Desjardins to fulfill its end of the bargain when you file a claim.

Another impressive thing about Desjardins is its online tools. Everything is neatly laid out on its website, while its mobile app helps you manage your insurance policy and file a claim from anywhere, at anytime.

What’s more, you can also use the app to lower yourAlberta vehicle insurancecost. Simply participate in the Ajusto Program and earn rewards for being a safe driver. Cool, eh?

One department where Desjardins underperforms is the customer service. The company scored only two out of five stars in the J.D. Power customer satisfaction study for the Alberta region. Nonetheless, its rating on the BBB’s website is “A+”.

In the end, despite weaker customer service, strong performance across the board makes Desjardins a superb choice for Alberta drivers.

Choose Desjardins ifyou wantcheapest car insuranceinAlberta, superior financial strength, and fine online tools.

Look elsewhere ifyou want top shelf customer service.

The Runner Up: The Personal

The Personal’s website claims that the company will put you on an easy road to savings when you buy auto insurance from it. That’s all fine and dandy, but the question is, does it live up to its promise?

In short, the answer is, “Yes.” If you are looking for acheap car insurance quoteinAlberta, The Personal should be at the top of your list. At $136 a month, its rates are among the best in the business.

But before you get your hopes high, you should know thatThe Personal is a specialized insurer. It provides coverage only to employees of its associated companies.That said, with 700 such companies, there’s more than a small chance that you might well qualify for it.

Besides low prices, The Personal takes additional measures — from discounts for safe driving to multiple vehicles premium reductions — to make auto insurance even more affordable.

Apart from providing low-cost vehicle insurance, The Personal is pretty strong financially, as indicated by the “AA1” rating from Moody’s of its parent company — Desjardins.

This basically means you can count on this top-rankingcar insuranceprovider inCanadato pay out claim expenses without any fuss.

As you would expect, filing a claim with such a reputable company is a doddle. All you have to do is dial its claims hotline number or fill the form on the website. You can also file a claim on-the-go using The Pesonal’s mobile app.

The icing on the cake comes in the form of excellent results in the J.D. Power’s customer satisfaction study for the Alberta region. The Personal scored four out of five stars and took the fourth place overall.

In conclusion, The Personal scores high in all departments that matter. If you wantcheap car insuranceinCanada, and you can obtain The Personal’s insurance, look no further.

Choose The Personal forits affordable premiums and reliable customer service.

Look elsewhere ifyou don’t qualify.

The Best for Ridesharing and Carsharing Coverage: Intact

Intact is one of the fewinsurance companies in Albertathat offer both ridesharing and carsharing coverage. If you are an Uber driver, you will be happy to learn that Intact offers an Uber ridesharing policy that covers you the moment you accept a ride till you drop off the passengers, as well as personal lines coverage options.

On the other hand, if you want to use Turo, a peer-to-peer online car rental service,Intact car insurancecompany inAlbertahas got you covered as well. Turo allows you to turn your car’s park time into paid time by bringing you in touch with people interested in renting your vehicle. You just need to arrange the pick-up and drop-off times that work for you by the app.

The most impressive thing is that between your personal auto insurance and Turo insurance, your vehicle will be covered all the time.

However, Intact is not just for Uber drivers and Turo users. It is one of thebestinsurance companies in Albertaand offersmany benefits to all drivers. For instance, if you own an electric vehicle or a rechargeable hybrid, Intact offers you a handsome discount of 10% on your premium.

Similarly, good drivers can save up to 25% on car insurance through Intact’smyDriving Discount, an app-based program that tracks your driving habits and adjusts your premiums accordingly.

Continuing with the positives, Intact is also rock-solid financially. It grabbed an “A+” rating — the second-highest rating possible — in the A.M. Best Survey.

On the downside, providingcheap auto insuranceinAlbertais not Intact’s speciality. Even with discounts, it is a tad expensive. Intact also underdelivers in the customer service department. It earned only three stars in the J.D. Power regional study.

Nonetheless, even with these flaws, Intact is a good fit for Uber drivers in Alberta and for those who want to rent their car through Turo.

Choose Intact ifyou are looking for an auto insurer that allows you to make extra money on the side by allowing to rent your car.

Look elsewhere ifyou wantcheapcarinsuranceinAlbertaor top-class customer service.

The Best for Online Tools: Sonnet

Do you prefer to purchase auto insurance online rather than deal with an agent? If yes,Sonnetmight be just right for you. It has a neatly-organized and fast quoting tool that lets you buy the desired coverage within minutes. In addition to a smart quoting tool, this insurer boasts of an eye-pleasing, user-friendly, and informative website.

However, simplifyingcar insuranceinAlbertais not the only thing Sonnet does well. We were also particularly pleased with its three bundle plans — the Essential, Preferred, and the Ultimate — which, among themselves, should be able to meet the auto insurance needs of most Albertans.

Additionally, each of its coverage plans is fully customizable, meaning you can easily drop the coverages you do not need.

However, on the downside, Sonnet rates are among the most expensive in Alberta. So if you are looking for the cheapestinsurance quoteinAlberta, you might want to look elsewhere.

As far as customer service is concerned, Sonnet seems to come across as an insurer that genuinely cares for its customers. While it doesn’t figure in the J.D. Power rankings for Canada, the insurer earned an impressive “A+” rating on the BBB’s website. This shows its customers are by large happy with its service.

Furthermore, a better-than-average score of “A-” on the A.M. Best rating scale proves it is comfortably-placed financially.

For these reasons and the fact that it is a digital-only brand, we believe it deserves a mention in the list ofAlberta best insurancecompanies.

Choose Sonnet ifyou want an insurer with great online tools and fully customizable auto insurance plans.

Look elsewhere ifyou want affordable car insurance or prefer handling insurance through an agent.

The Best for Customer Service: The Co-Operators Insurance

When it comes to customer service,The Co-Operators insuranceis way ahead of the competition. It earned the full five stars in J.D. Power regional study and took the first place overall. To put this into perspective, it was the only auto insurer out of seven to get the maximum rating in the Alberta region.

However, excellent customer is not the only reason why you might want to give The Co-Operators a chance. While not thecheapest car insuranceproviderin Canada, it offer affordable rates. Furthermore, it performs reasonably well in the financial strength department, notching up an “A-” or “Excellent” rating in the A.M. Best survey.

An interesting thing about The Co-Operators is that it offers a range of investment services to its customers. If you need help on this front, its financial advisors can help you create a plan that suits your needs and profile.

For these reasons, The Co-Operators is a worthy option to consider when buying auto insurance.

Choose The Co-Operators forits affordable rates and top-class customer service.

Look elsewhere ifyou want an insurer with lowest premiums.

Alberta Auto Insurance (By City)

Average auto insurance costs can vary substantially from one major Alberta city to another. For instance, Edmond’s average premium is almost 28% higher than Lethbridge’s.

To find out how much you will have to pay for car insurance in five major cities — Calgary, Edmond, Red Deer, Lethbridge, and St. Albert — we gathered quotes from all important players in the industry. Our quotes includedfull coverage limitsfor a 40-year-old male driving a 2018 Honda Civic with a clean driving record.

Car InsuranceinCalgary

Located on the Bow River and about 80 kilometers from the Rocky Mountains, Calgary is the largest city in Alberta with a population of over 1.2 million. It is the centre of Canada’s oil industry and owes much of its growth to this status. Calgary is known for its high quality of life, withThe Economistranking it the most livable city in Canada twice in a row, in 2018 and 2019.

Calgary is the second-most expensive city in Alberta for auto insurance. That said, there are several insurers that offercheap car insuranceinCalgary. Let’s find out all about them.

Car InsuranceinEdmonton

Edmonton, the capital of Alberta, is located on the North Saskatchewan River. The city is famous for its rich culture, history, and natural resources. Edmonton has more parkland per capita than any other city in Canada, and hosts countless festivals, the most famous among them being The Folk Festival, Pride Festival, and Fringe Festival.

While Edmonton is not as expensive to live as Calgary, car insurance here is the costliest in the province of Alberta. However, that doesn’t mean you can’t findcheap car insuranceinEdmonton. Let’s find out the names of insurers offering pocket-friendly auto insurance products in this city.

Car InsuranceinRed Deer

Situated halfway between Calgary and Edmonton, Red Deer is the third most populated city in Alberta with a population of over 100,000. The city is known for the production of oil, grain, and of course, cattle. There are more than 9,000 farms in Red Deer, with several offering tours, eats, and other tributes to rural life to tourists.

If you want an affordableauto insurance quotein Red Deer,Alberta, it’s hard to look past Dejardines and The Personal. However, the former has a lackluster customer service, while the latter is available only to employees of the associated companies.

If customer service is a deal-breaker for you, consider The Co-Operators as it enjoys the highest possible rating in the J.D. Power regional study. Other names worthy of your attention are Intact and TD insurance.

Car Insurance in Lethbridge

Lethbridge is the third largest city in Alberta by land area after Calgary and Edmonton. Established in 1906, Lethbridge is the financial, transportation, and commercial center of southern Alberta.

With the average price of $146 a month,Lethbridge car insuranceis the least expensive in Alberta. You can further sweeten the deal by opting for either Desjardins or The Personal, as both are 15% – 22% cheaper than the city’s average. Other worthy options include TD Insurance, Intact, and Sonnet.

Car Insurance in St. Albert

Located on the Sturgeon River, St. Albert is a small, bustling city northwest of the City of Edmonton with a population of over 66,000 residents. Fondly called “The Botanical Arts City,” St. Albert is a wonderful place to live, work, and visit.

We comparedcar insurance quotes onlineto find out the cheapest car insurance company in St. Albert. With an average rate of $133 a month, Desjardins emerged a clear winner, followed by The Personal, at $139 a month.

You might also want to add TD Insurance and Intact to your list. The latter even gives you a chance to earn some extra money through Turo.

Alberta Car Insurance Rules and Regulations

Institutions that Regulate Auto Insurance in Alberta

The provincial government sets car insurance rates in Alberta. Specifically speaking, the Automobile Insurance Rate Board (AIRB) and the Alberta Superintendent of Insurance supervise auto insurance rates in the province.

In 2004, Alberta started using the grid rating system, which sets maximum premiums that insurers can charge for basic insurance coverage. A person’s Grid rating depends on her driving record.

The Grid rating works like an insurance cap; that is, you will not have to pay more forcar insurance in Albertathan the maximum amount set for your Grid. In fact, there’s a good chance that you will be paying much less, since research shows 90% of Alberta’s drivers don’t pay the maximum allowable rate defined by their Grid level.

Drivers who have a poor driving record or are inexperienced benefit the most. Though they will have to pay the maximum amount determined by their Grid level, chances are that without the grid, they would be paying even more for auto insurance.

Factors that Influence the Price ofCar InsuranceinAlberta

Multiple factors determine your auto insurance cost. Here are the top seven factors:

• Driving Record– Auto insurance companies use your driving history to predict your future performance. If you have a history of tickets or violations, expect to pay more. A lack of insurance in the past also pushes the premiums up, since insurers can’t use your past data to measure your risk.
• Where you drive–Canadian car insurancecompanies take your location into account while calculating your premium. Insurance costs are usually higher for urban areas, as they tend to have higher accident and car theft rates.
• Age– It may not seem fair, but age is a very important ranking factor. Insurers view teen drivers as risky and charge them more. Car insurance premiums begin to drop at age 20, contingent to your driving history, and start to increase again near the age of 70.
• Car make and model– Ifa car costs more to replace or repair,Alberta insurance companieswill quote a higher rate to cover these potential costs. Typically, insurance costs are higher for newer vehicles and sports/luxury cars, especially if you are getting collision and comprehensive coverage.
• Claims history– Auto insurers don’t like it when you have a long claims history. They view such drivers as very risky and charge them higher rates.
• Usage– Generally speaking, the more you drive, the higherthe chances you’ll get into an accident. Insurers take this into account when determining rates.

Coverage limit– If everything else remains the same, you will have to pay more for a higher coverage or lower deductibles.

HowAlberta Car InsurancePrices Compare to Other Provinces

In Alberta,the average cost of car insurancewas 1,251 Canadian Dollars as of June 2018. This makes it the third-most expensive Canadian province for car insurance, with the first and second place going toBritish ColumbiaandOntario, respectively.

Although car insurance in Alberta is costlier than most other provinces, several providersoffer affordable autoinsurance quotesinAlberta. For instance, according to our research, Desjardins’ rates are the most competitive, followed by The Personal. The latter, however, has a much better overall record in customer service than Desjardins.

The Co-Operators is another viable option for price-conscious buyers. Even though its rates are not as competitive as the other two, its top-class performance in the customer service department more than makes up for a slightly higher price tag.

MinimumAlberta Auto InsurancePolicy

If you want to legally drive in Alberta, you must have a minimum of$200,000 of third-party liabilityinsurance. It covers any damages you cause to another person, another vehicle, or another person’s property with your vehicle. It also covers the medical bills of the other driver when you were at fault. However,the payment for medical bills is capped at $50,000 per person.

Mind you, the third-party liability coverage doesn’t cover your medical bills in case you suffered injuries in an accident caused by you. That’s whyaccident benefits coverage is also mandatory in Alberta. Its purpose is to reimburse your injury-related expenses or death benefits regardless of fault.

It covers you and your passengers, as well as any pedestrians who were involved in the accident.

Alberta Car InsuranceSystem

In Alberta, insurance is sold by private companies, with relatively strict government regulations.

Alberta uses a combination ofno-fault and tort-based system. In other words, you will receive compensation from your insurer, regardless of who was at fault.

However, your insurer may not pay you the full compensation, though you do have the right to sue the insurance company of the at-fault driver to get additional compensation for damages and medical bills.

How to Get Cheap Car Insurance in Alberta

Study Auto Insurance Reviews

No single auto insurer excels on all ranking factors, like affordability, customer service, availability, and financial stability. Therefore, it is best that you check how different companies perform on factors that are most important to you, besides taking into account their overall ranking.

Of course, this detailed guide shows you exactly that, but you might want to look at more options. In that case, we recommend that you check out our latestcar insurance rankings for Canada.

To help you find the bestcar insurance quote, we reviewed no fewer than 30 auto insurers before coming up with our top 10 picks. We evaluated each of these companies in detail and ranked them according to their performance on the seven most important factors for buying car insurance – affordability, customer service, discounts, optional coverages, financial strength, availability, and online tools.

We’re sure you will find the right auto insurer here, irrespective of your requirements or how picky you are.

Compare Car Insurance Quotes

Do you compare quotes from multiple auto insurers before renewing your policy every year? If not, you might be missing a trick.

Just because an insurer earlier offered you thebest car insuranceinAlbertadoesn’t mean that its offer will always remain unsurpassed. Auto insurers often change their pricing strategy from time to time, depending on their performance.

For example, though right now Intact charges considerably more than the Alberta’s average price, if its market share were to take a tumble, it’s possible that it might start offering low-cost auto insurance.

Get the Most Out of Discounts

The best way to save on autoinsuranceinAlbertais by availing all discounts available to you. This is easy when you obtain a quote online, since the system automatically factors in all the available discounts.

But if you are buying insurance through an agent or broker, remember to ask her to apply all available discounts to your quote.

Some of the most common types of discount programs on offer in Alberta are as follows:

• Tracked Driving Habits– MostAlberta insurancecompanies (if not all) are willing to lower your rates if you enroll into their car tracking program.
• Bundle Discount– You can chip away at your monthly bill by buying multiple insurance products from the same provider.
• Safety Feature Discount– You can score discounts on your auto insurance policy if your car has beenchecked by a qualified technicianand has common safety features. These include airbags, anti-lock brakes, daytime running lights, automatic seat belts, electronic stability control, among others.
• Low Usage Discount– Some car insurers offer betterAlberta car insurance ratesfor drivers that cover less km annually than average.
• Student Discount– Students with good grades can save up to 10% or even more on car insurance.

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