While Alberta has two metropolitan areas with over 1,000,000 people and substantial environmental risks, auto insurance in the province is reasonable. Indeed, compared to Ontario, Albertans have access to affordable car insurance.
In Ontario, the most expensive insurance market in Canada, customers pay on average $130/month for their coverage. This equates to over $1,400 per year on auto insurance. For Albertans, the average is closer to $105/month, or $1260 per year. Car insurance in Alberta is around 30% more affordable than it is in Ontario.
Like in other Canadian provinces, auto insurance in Alberta is mandatory for all vehicles. The government operates a no-fault insurance model where private companies offer coverage to customers. This type of car insurance means the policyholder always makes claims to their own insurance company.
In the event of a collision, all parties are required to go to their own provider regardless of who was at fault. Minimum third party liability in Alberta is $200,000. This is a mandatory limit and any driver without it will be unable to register their vehicle.
Auto insurance in Alberta is regulated by the Automobile Insurance Rate Board (AIRB) and the Office of the Superintendent of Insurance.
Weather is an important consideration in Alberta. The province sees all types of harsh weather and suffers from significant natural disasters. During winter, Alberta can be among the coldest regions in Canada. Blizzards, snow storms, whiteouts, heavy rain, and strong winds are common in the province during the cold season.
Driving can become hazardous in these conditions and safe driving is hugely important during the winter months. Installing snow tires is a good practice in the cold winter, and insurance companies will often offer discounts to drivers with them installed. The province does not make snow tires a mandatory requirement for winter driving.
Natural disasters in Alberta range from massive flash floods to enormous wildfires. While these catastrophic events put more pressure on homeowners, there is also a risk for vehicles. Fort McMurray was a May, 2016 wildfire event that was the largest insurance loss in Canadian history. Hundreds of vehicles were lost in the Albertan town.
Alberta is also notable in the rise of ride-sharing companies like Uber in Canada. Edmonton became the first city in the country to formally accept Uber with new regulations aimed at adopting ride-sharing. The provincial government quickly followed and allowed ride-sharing-specific auto insurance to be