one of the most expensive car insurance markets in Canada. As the state searches
for methods to reform automobile insurance and also make it even more economical, the focus is squarely
on Edmonton and Calgary, Alberta’s two biggest cities. While there are lots of
similarities fuelling the price of car insurance in both of these cities, you will find
also differences forcing that discrepancy.
The Price of Car Insurance in Alberta
car insurance is available from private companies and is a legal requirement
for all drivers. Basic, mandatory coverage in Alberta includes $200,000
third-party liability and accident benefits coverage. Drivers can increase that limit as well as
add optional coverages such as collision protection.
In recent years, the cost of insuring a vehicle in Alberta
has increased. So much so, Albertans now pay some of the highest car insurance
rates in Canada. According to the Insurance Bureau of Canada, motorists in Alberta
face an average premium of $1,316. Only drivers in British Columbia and
Ontario pay more on average ($1,832 and $1,505, respectively).
Which City Has Cheaper Auto Insurance: Edmonton or Calgary?
Big cities across Canada have high insurance rates. Edmonton
and Calgary are no exception. Car theft, the number of collisions, and a surge
in distracted driving all contribute to cities being expensive insurance
markets. Moreover, Alberta has a historically high rate of impaired driving.
Still, despite both cities having many of the same factors affecting
the cost of auto insurance, it remains more expensive to insure a vehicle in
Edmonton than Calgary.
Though the cost differential for premiums between the cities
is relatively small, Edmonton has one of the highest vehicle collision claims
rates in Canada. Allstate Canada conducted a 10-year study across its
policyholders to find which Canadians cities have the highest collision claims.
While cities in Ontario dominated the top of the list, Edmonton ranked high
with a collision claims frequency of 6.5%. Indeed, the city was the only
location in Alberta to appear so high in the study.
Edmonton has also become the vehicle theft epicentre of
Alberta. In recent years, Edmonton Police have publicized the city’s problems
with auto theft. Between Jan. 1 and Nov. 30, 2019, 3,638 vehicles were stolen in
the city and thieves broke into 7,302 cars or trucks. Insurance businesses are
understandably calculating that risk into the premiums they offer.
Many Albertans Think Their Auto Insurance Costs Are Unfair
Albertans are amongst the savviest motorists in Canada and
are aware of how much they pay for insurance. In the recent Automobile
Insurance Rate Board (AIRB) “Consumer Perspective on Automobile Insurance 2020”
study, just 23% of respondents in Alberta agreed that ‘automobile insurance
premiums are fair and reasonable’.
Sure, no one likes paying auto insurance, but in the past,
Alberta drivers understood the value of coverage. Back in 2017, the same AIRB
survey found 60% of Albertans thought their premiums were fair. Furthermore,
the 2020 study found 91% of respondents know that they are facing rising costs in
their auto insurance premium.
Respondents also understand the reasons leading to soaring
costs. Those include severe weather events (81%), claims from distracted
driving accidents (74%), growing costs associated with treating injuries from
car accidents (69%), and costs to fix damaged vehicles with automated
assisted-driving technologies (52%).
How Drivers Can Try to Lower Their Premiums
In Edmonton and Calgary, the soaring cost of car insurance
is unaffordable for many drivers. Still, there are actions drivers can take to
help lower the cost of coverage. For example, bundling auto and home insurance,
limiting how far you drive, and increasing your deductibles can all contribute
to a lower rate.
Comparing Auto Insurance quotes may be the best way to discover
the policy you need at the most affordable speed.