Types of Auto Insurance in Alberta

Did you know that there are different kinds of car insurance in Alberta?

Car insurance isn't an option for Albertans, it's mandatory, but that doesn't mean you don't have the option to compare car insurance rates and plans. Beyond simply choosing which provider offers the insurance coverage and rates that work best for you, you can also choose what kind of coverage to get. Here's some information that can help you choose which kind of car insurance coverage is right for you as you compare the market.

How auto insurance works in Alberta

Alberta is no different than the other Canadian provinces when it comes to car insurance: it's required by law. However, the type of insurance coverage you choose is not. You just need to have the minimal amount of third-party liability insurance (coverage to $200,000) on your vehicle to remain in compliance with government regulation. However, that isn't the coverage level you have to restrict yourself to. In fact, it is highly recommended that you increase that to $1,000,000 or $2,000,000 in liability coverage.

What does this increase in coverage mean for your rates? Fortunately, car insurance rates in Alberta aren't the highest in Canada. This is partly due to the fact that Alberta has a tort system ("at-fault") for bodily injury and car damage liability, but it also uses a "no-fault" system for accident benefit coverage, which means, regardless of fault, both insurers pay the claim of the policyholder. This combined system helps to keep policy costs lower. On average, people are paying about $110 per month for their insurance. However, even though Alberta's rates are relatively reasonable in comparison to other provinces, that doesn't mean you don't have the option to shop the market to find the Alberta car insurance rates that work best for you.

Basic Coverage for the cheapest car insurance in Alberta

Not everyone wants or needs the highest level of coverage. For instance, if the car you are driving isn't the most expensive to replace, then you may want to pay less each month for the minimum coverage level. But what exactly are you covered for if you opt to stick with basic coverage?

Personal Liability and Property Damage (PLPD) Insurance

This type of insurance is most often referred to as third-party liability insurance, and it's the type of auto coverage that is legally mandatory for drivers in the province of Alberta because it provides a legal safeguard covering any and all damages (ie: to another person or their property) that are caused by your vehicle. As required by the Province of Alberta, drivers need to have a minimum of $200,000 of PLPD coverage, which makes it the cheapest car insurance in Alberta. Depending on your circumstances, that might be the best option when it comes to car insurance in Alberta for your specific needs. However, if you have more at stake, you may want to consider increasing your coverage amount.

Accident Benefits

The other legal requirement for Alberta car insurance is known as accident benefits. This covers any passengers you may have in your vehicle in the event that an accident leads to injury or death - regardless of who is at fault. Even though it's the cheapest car insurance on the Alberta market, it still includes coverage for medical and rehabilitation costs, funeral expenses, death benefits, and income replacement, as well as uninsured motorist coverage, which protects you in the event that you get into an accident with an uninsured driver.

Additional Coverage

However, you don't just want the cheapest car insurance in Alberta; you also want the best car insurance in Alberta, and that means the coverage type and amount that is right for you. So, what are your options when it comes to additional coverage?

Collision Coverage

Collision coverage pays for repairs to the policyholder's vehicle or replacement, should damages be incurred during an accident with another vehicle or object. It is among the best additional car insurance in Alberta because it covers you whether you are at fault or not.

Specified Perils

While this type of insurance isn't as extensive as comprehensive insurance, it still offers more protection than collision coverage, and that's why it's still considered the best car insurance in Alberta. It doesn't provide you with coverage in the event of an accident, though; it covers any damages that are caused by perils that are specifically named in your policy (ie: theft or fire).

Comprehensive Insurance

Similarly, comprehensive insurance also covers vehicle damages that were not incurred during a collision, but it is more "comprehensive" than the specified perils policy. It covers you in the event that fire, theft, vandalism, environmental/weather related events, etc. causes damage to your vehicle. It is the best car insurance in Alberta to get because it provides you with the greatest degree of coverage out of any other policy.