Finding car insurance can be stressful and challenging, especially for those who don’t have much experience in average rates and coverage
The Many Ways to Save on Auto Insurance in Alberta
Many factors affect Alberta’s car insurance rates, from the condition of your vehicle to where you drive and park, or even your educational and driving history! The following are just a few of the ways that you may be able to save on your auto insurance rates.
By starting with online comparison, you will be able to check average auto insurance rates in Alberta. If you’ve been with the same insurer for a long time, it may be challenging to beat their rates (especially if you haven’t had any recent claims), but it’s always worth looking. If you don’t have a good driving record, keep in mind that this will only affect you for approximately three years. At that time, previously incurred tickets will be removed from your history, and your premiums may be reduced.
If you haven’t done so already, you can complete a driving course in an attempt to reduce your insurance premiums with some insurance companies. If the car you’re currently driving isn’t worth very much, consider only getting the minimal coverage required by law, without collision damage. This will likely mean that you’ll have liability insurance and will still be protected if you damage someone’s vehicle, but the damages on your vehicle will not be covered.
If you’re a more experienced driver, you may be able to save by increasing your car insurance deductibles and thus incurring higher payments for damages in case of an accident.
Something as simple as where you park your vehicle can also affect your insurance rates. By parking in a safe location, like a private or secure garage, you will likely receive lower premiums. If you need multiple kinds of insurance coverage (like auto, home, and life insurance), many companies will give you the option to bundle them together for a discounted rate.
Graduates of individual Canadian universities may be eligible for a discounted rate from some insurance providers. Some insurance providers will offer a discount to members of specific professional organizations, such as Certified Management Accountants of Canada or The Air Canada Pilots Association.
As a senior citizen, you will also save since most companies offer discounts to seniors.
Understanding Auto Insurance in Alberta
When choosing auto insurance, it’s essential to understand the kinds of insurance available to you. This will ensure that you choose a plan that works best for you and that you don’t end up paying for things you don’t need.
Although auto insurance is required by law in Alberta, the government only regulates the minimal amount of third-party liability insurance on your automobile, which is $200,000. In contrast, we recommend having at least $1,000,000 to $2,000,000 in liability coverage to protect yourself and your finances should an accident happen.
Alberta uses an “at-fault” insurance approach for bodily injury and vehicle damage liability. In contrast, the province uses a “no-fault” approach to accident benefits coverage, meaning that each insurer pays its policyholder’s claim. Alberta’s car insurance rates are at an average of $110 per month, which are not the highest in Canada. Still, you must understand what is offered to search for the best price properly.
The Types of Automobile Insurance Offered
Starting with basic coverage, all drivers within Alberta’s province need personal liability and property damage (PLPD) insurance, which is also referred to as third-party liability insurance. This is legally mandatory to drive within the province, as it covers damages caused by your vehicle to another person or their property.
Although the minimum is currently $200,000, it is wise to seek a higher coverage amount, as stated above. Alberta also requires drivers to have accident benefits coverage, as this covers the passengers of a vehicle in the event of injury or death. Regardless of who may be at fault, this kind of insurance will cover medical and rehabilitation costs, funeral expenses, death benefits, and income replacement, depending on the situation. Accident benefits will also give you uninsured motorist coverage if you are involved in an accident with an uninsured driver.
Although third-party liability and accident benefits insurance is the minimum requirements necessary to drive in Alberta, other types of coverage may interest you. For example, collision coverage will cover any repairs to your vehicle that have been caused by an accident with another vehicle or an object. Best of all, the repair or replacement of your vehicle is covered, regardless of whether or not you are at fault for the damages.
Comprehensive insurance goes a step further by covering damages to your vehicle that were not the result of an accident or collision of any kind. This insurance protects your vehicle from threats, including fire, theft, vandalism, and environmental or weather-related damages. This is the most significant degree of coverage available through an auto insurance policy.
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