A Complete Guide to Understanding Edmonton Car Insurance Costs
The Average Cost of Car Insurance in Edmonton
According to the most recent data, the average cost of car insurance in Edmonton is a little more than $1400 per year (or nearly $119 per month). Due to the number of traffic violations and accidents in this city, Edmonton has one of the highest car insurance rates in Alberta. But, for context, it’s only a few dollars more per year than Calgary, as cities tend to have higher rates than rural areas.
Fun Fact!
If you’re on a tighter budget and want to get the cheapest car insurance in Edmonton that you can, insurance rates for minivans and station wagons are lower than what you’ll find for sedans, trucks, and SUVs.
How is My Car Insurance Premium Calculated in Edmonton?
Calculating insurance costs is complicated. You came here to find out “How much is car insurance in Edmonton?” but the answer is different for everybody. Insurance premiums (or, the amount you pay each year for insurance) depends on where you live, the vehicle you drive, how much you drive, your driving history, and more factors (which we outline below).
Insurers don’t know what the claims costs will be in any given year. That is why premiums have to be based on informed predictions about how much money may be needed to pay future claims. To make those predictions, insurers gather information that they know from experience will help them set fair but accurate premium prices.
Here are some things insurers use to determine car insurance premiums:
- Claims history (number of claims in the recent past and their cost)
- Driving record (history that could include collisions, convictions, tickets, etc.)
- Type of car driven
- Repair costs
- Collision and crime rate where the car is garaged
- Driving frequency and distance
- Additional coverage, deductibles, and discounts
- Government regulations and taxes (including reimbursing provincial health plans for treatment of victims of car collisions)
Do I Have to Car Insurance in Edmonton?
Absolutely, unequivocally, yes.
You came to a page titled “How much is car insurance in Edmonton” so it’s safe to assume that you’re at least a little concerned with how much you’ll be required to pay. At Go Insurance we do everything we possibly can to get your premiums as low as possible without sacrificing coverage and protection (which is why we are a broker for more than 10 insurance companies, so we can find you the best deal).
Third-party liability and accident car insurance is mandatory in Alberta. This covers the damage and injuries that may occur if you are deemed to be at-fault in a car accident.
Furthermore, if you finance your car, then your lender or bank will also require you to have both collision and comprehensive car insurance (we outline what each of those coverages are below).
In addition to collision and comprehensive coverage, your optional coverage needs will depend on the car you’re driving, how much you drive, the conditions in which you drive, how much you’re willing to spend on car insurance in Edmonton, and other factors.
Does the Type of Coverage I Choose Affect How Much Car Insurance Costs in Edmonton?
To a degree, yes. There are many types of optional car insurance coverages for Edmonton drivers. So, to get to the bottom of “How much does car insurance cost in Edmonton?” you’ll need to decide which optional coverages you’re interested in/require.
Here are the optional coverages available for car insurance in Edmonton:
Collision
This covers the cost of fixing/replacing your vehicle if you get into an accident and you are deemed at-fault.
Comprehensive
Comprehensive car insurance in Edmonton protects you in the event that your vehicle is stolen, vandalized, destroyed in a fire, or damaged by hail.
Emergency Service Costs
If you would like to avoid the (greater) cost of a towing service after an accident or a claim of some kind, this coverage takes care of that fee.
Roadside Assistance
Often, car insurance companies offer roadside assistance as part of their policy.
Family Protection
This protect you in the unfortunate event that the at-fault party in an accident is under-insured or completely uninsured. Family Protection will help to cover expenses for you or your family if you’re hurt in an accident and the at-fault party cannot cover those expense.
Glass
Covers the cost of paying for damaged glass as a result of an accident.
Loss of Use
While your vehicle is being repaired, Loss of Use coverage can help cover some of the cost of using transit, a rental car, or Uber.
Why Do I Pay Annually?
Have you ever wondered why your car insurance needs to be renewed/renegotiated every year?
Your premiums and the premiums of others are based on a number of factors that all relate to how much risk is involved in the activity being insured. The insurance companies have to predict how much money they will need to pay the coming year’s claims.
The Difference Between Mandatory Coverage and Optional Coverage
Mandatory Coverage:
Mandatory Coverage is just that: these are non-optional forms of car insurance that you must have in order to drive a car in Edmonton. There are two forms of mandatory coverage:
- Third-Party Liability: This will help you pay for the damage to another person’s vehicle and for any injuries they might receive. This coverage is crucial if you get sued as a result of an accident.
- Accident Benefits: This covers income replacement, rehab, and medical benefit costs of anyone who is hurt in an accident, regardless of who is at fault.
Optional Coverage:
Optional Coverage covers types of insurance that you must opt into. Whether you get these types of coverages is up to you. By no means does it make these coverages less important, though.
- Collision or Upset: If you are at fault, this coverage covers the loss of/damage to your vehicle and any contents inside.
- Uninsured Automobile: If an uninsured driver injures you, kills a passenger, or performs a hit and run, this coverage will ensure that you and your family are covered in the event the at-fault person cannot pay.
Do Traffic Tickets Affect How Much Insurance Costs in Edmonton?
Traffic tickets can actually affect the cost of your insurance a great deal. But it’s not always a bad thing!
Depending on whether you’re getting more or less traffic tickets than in the past, your car insurance cost in Edmonton could go either up or down as a result.
In terms of the “How much is car insurance in Edmonton?” question, insurance companies will typically separate your driving tickets into three categories: minor tickets, major tickets, and serious violations.
Minor Traffic Tickets
- Speeding 1 – 49km/h + over the limit
- Following too close
- Improper passing
- Improper turn
- Hogging the roadway
Major Traffic Tickets
- Speeding 50km/h + over the limit
- Dangerous driving
- Racing
- Stunting
- DUI or distracted driving
Minor tickets will stay on your “record” and impact your rates for 3 years. These kinds of tickets can impact your car insurance rates in Edmonton by as much as 25%.
Major tickets and serious violations will cause your rates to rise significantly in Edmonton. You are also more likely to have difficulties when adding optional insurance coverages. **remember a Distracted Driving Ticket is now considered a Serious Violation and can impact your insurance costs by 50%
DID YOU KNOW…?
Over the last decade, insurance claims for Canadians who suffer loss as a result of severe weather or natural disasters have averaged well in excess of $1 billion annually. The Fort McMurray fire in 2016 is the costliest insured disaster in Canadian history, with more than $3.7 billion in insured losses.
Residential flood insurance has become available in Canada, yet roughly only a third of homeowners have added this coverage to their policies. You can lower your home insurance by taking preventive measures against fire, theft, water damage and severe weather. This may include installing a theft alarm system, reinforced roofing, a backwater valve, sump pumps and a sprinkler system. Let your insurer know when you make an update.
Insurance crimes such as fake accidents and falsifying insurance claims not only affect the unsuspecting victims of the collision, but also affect the general public by needlessly using up valuable law enforcement, court and health care resources that could be better used elsewhere. This translates into all Canadians paying a price in the forms of higher taxes and significantly higher insurance costs.
How Does Edmonton Car Insurance Work?
When people buy insurance, they put money into a pool with many others. The money they put in is called a premium. Some of that pool of money helps the policyholders who suffer a hardship (e.g., a car collision) in that year. Payouts for these hardships are called claims.
Because there are usually more people contributing to the pool than there are people making claims at any given time, there is enough to pay the claims. There is, and needs to be, enough money for large single claims (e.g., when someone is permanently disabled as a result of a car collision).