Motorists in Calgary enjoy some of the most affordable car insurance in Canada. Second, only to Quebec, insurance premiums represent 2.7 percent of the average driver’s personal disposable income, compared with 4.5 percent in Ontario, the least affordable province. The oil economy and comparative affluence of Calgary and the rest of Alberta mean that, in dollar terms, premiums are in the middle of the pack. Provincial rates placed sixth in Canada in a 2011 study comparing car insurance across the country.
Alberta’s Car Insurance System
Six out of ten provinces and three territories use private insurers to provide car insurance. In Alberta, there is a blend of no-fault and tort-based insurance, built around minimum coverages established by the government. To legally drive a car on the streets of Calgary, the car must be covered by car insurance. This is common to all roads in Canada.
Minimum Car Insurance Coverage
Third party liability insurance is the most common mandatory coverage in the country, and Calgary motorists are required to carry a minimum of $200,000 coverage. This provides protection for the at-fault driver against lawsuits arising from an accident. Since litigation from any one accident could possibly exceed this amount, many drivers opt for $1 million as the de facto minimum coverage, though it exceeds requirements.
Mandatory car insurance coverage also includes amounts up to $50,000 per person for medical treatment and rehabilitation. Funeral benefits of $5,000 are required, in case of death, and death benefit amounts are also paid out, varying depending on the relationship and number of dependants of the deceased. Disability income replacement for a maximum of two years is also required. These coverages are provided by the driver’s insurance company, regardless of which driver was at fault in the accident.
Alberta automobile legislation grants motorists the right to sue for both economic losses and for pain and suffering, elements of the tort system mentioned earlier.
Getting the Lowest Car Insurance Rates
Calgary drivers are in a competitive car insurance market, as each insurance company establishes its own way of underwriting claims. This can mean one driver might see substantially different rates for the same coverage.
One of the best ways to assure you’re paying the lowest rates even in the affordable environs of Cowtown is through the use of a car insurance calculator, such as the one here at QuoteFinder. Simply enter your information anonymously, and QuoteFinder will search dozens of insurance companies to provide you with estimates based on the companies’ own calculations. You’ll be provided with the cheapest options for your situation, giving you a head start on the most affordable car insurance premiums.