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How Much Should You Really Be Paying for Car Insurance?

Driving in Calgary happens to be a pleasure for car owners. As you cruise along the roads, your eyes feast upon the charm of the Canadian Rockies. However, many drivers wouldn’t appreciate navigating the busy roads during rush hours.

Being the fifth-largest city in Canada population-wise, Calgary has some of the busiest roads in the province.

Driving through a densely populated city inherently attracts high insurance premiums. Car owners habitually reach out to insurance brokers, asking, “How much should I be paying for car insurance in Calgary?”

Reputed car insurance brokers in Calgary can help you slash premiums significantly. Being industry experts, these professionals make smart calls while comparing multiple quotes.

What makes car insurance in Calgary so expensive?

The average annual premium car owners in Calgary shell out is slightly above $1,500. You might wonder why insuring your car in this beautiful city costs so much. Well, here are the risk factors that reflect adversely on your premiums.

  • Most of the roads in Calgary remain busy, with the population increasing significantly in recent decades.
  • Calgary is ill-known for being the city with the highest auto theft rate in Canada.
  • Alberta’s weather isn’t too favorable for drivers, leading to frequent road accidents.
  • Lots of construction projects are going on in Calgary, leading to a higher number of collisions.

So, if you are wondering, “How much should I be paying for car insurance?”, take a look at the cost-break for your premiums.

How does auto insurance work in Calgary?

The Alberta Auto Insurance Rate Board (AIRB) directly controls the cost of car insurance in Calgary. Although you need to purchase your policies from private insurers, AIRB directly controls premiums.

Therefore, insurers need to seek approval from AIRB by justifying the cause before altering the current insurance rates. Besides, AIRB adheres to the grid rating system that establishes the basic rate for new drivers in Alberta.

However, most drivers pay lower than the grid rate since private insurers compete among themselves to keep premiums affordable. The grid rate applies only to 10% of the drivers who are inexperienced.

If you happen to be a grid-rated driver and don’t file a claim for third-party liability coverage, your insurance rates decrease by 5% each year. You are entitled to enjoy a maximum reduction of 60% on the grid rate. On the other hand, you move up the grid by five steps for each claim if you are at fault.

How do insurers in Calgary evaluate your risk profile?

Usually, insurance companies evaluate your risk profile based on certain parameters. Among other factors, these include:

  • Your age
  • Your driving habits
  • Your driving records
  • Your insurance history
  • Your address
  • The vehicle you are driving

However, the AIRB closely monitors how an insurer evaluates your profile; their opinion is the final say. Your risk profile directly determines how much premium your insurer should charge you.

According to the Superintendent of Insurance of Alberta, no insurer is entitled to include the claims where the driver is not at fault to revise or calculate premiums. However, if you are at fault, your insurer can increase your premium on collision, liability, and all-perils coverage.

You May Like to Read: How to Evaluate Car Insurance Companies?

How much do you pay for car insurance in Calgary?

So, how much do you pay for car insurance? In Calgary, all car owners should purchase the mandatory automobile insurance policy. You are free to further customize the policy by including the optional features and add-ons. The higher coverage you vouch for, the more premium you have to shell out.

1. Mandatory car insurance in Calgary

As a mandate, you need to purchase basic insurance coverage in Alberta. The same norms apply to drivers in Calgary, where you should have an accident and third-party liability benefits of at least $200,000. The grid rating program determines exactly how much you need to pay. The basic coverage includes:

  • Accident benefits
  • Personal liability and property damage (PLPD)

2. Optional car insurance in Calgary

To further strengthen your line of defense against perils, you are entitled to personalize your insurance coverage by choosing from the following optional coverages.

  • Comprehensive coverage
  • Collision coverage
  • Additional accident benefits
  • Specified perils
  • Additional PLPD coverage

3. Add-on car insurance in Calgary

These are riders that you can’t purchase as freestanding policies. However, car owners can include these add-ons along with their basic policies in Calgary.

  • Accident forgiveness
  • Leased vehicle insurance
  • Alternate transportation benefits
  • Replacement value for total loss
  • Loss of use
  • Towing and emergency services
  • Depreciation waiver

Insurance brokers usually help their clients determine the premiums. You may include or exclude the necessary optional policies and add-ons based on your requirements. This should help you determine the actual insurance premium to cover your car. On average, you should be paying anything between $1,300 and $1,500 as your auto insurance premium in Calgary.

Drivers who are wondering “How much should I be paying for car insurance?” can also use calculator apps to estimate rates.

Can you reduce your premiums without compromising coverage?

Well, here comes the million-dollar question. Most drivers consult insurance brokers to reduce their premiums without compromising their coverage. Experienced brokers help them fine-tune their policies, curtailing insurance premiums wherever possible.

Here are a few recommendations to help you reduce premiums without losing any benefits.

  • Bundle your car and home insurance policies to qualify for discounts of up to 15% on both schemes.
  • Insure multiple cars in your family under the same policy to save more on premiums.
  • Consider paying a higher deductible to keep premiums low.
  • Overlook collision coverage if your car is old.
  • Install a telematic device to demonstrate safe driving skills.
  • Maintain a decent driving record to maintain a low-risk profile.
  • Install anti-theft and other security devices in your car.

Endnote

Even after ticking all the boxes, there’s still a scope to save on your car insurance premium in Alberta. Reputed insurance brokers keep track of the best discounts and offers in the market.

Once you consult these professionals, they can help you capitalize on these offers, utilizing their deep market contacts. With their assistance, insuring your car in Calgary should no longer be an expensive ordeal!

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