While purchasing automobile insurance is mandatory in Canada, the rates significantly vary from one province to the next. In provinces like British Columbia and Alberta, the insurance rates are among the highest in Canada.
To give you an idea of the insurance requirements in these two provinces, we have discussed the Alberta car insurance vs BC car insurance rates in this article. You can also click here to consult reputed insurance brokers. The professionals will help you find affordable policies with reasonable premiums even if you reside in Alberta.
Well, you might be moving between different provinces in Canada. In case you decide to stay in another province for a few months, you need to consider the changes in premiums. So, we have discussed the insurance requirements in two provinces where the rates are among the highest in the country.
Type of car insurance in Alberta and British Columbia
Private insurance companies operate in Alberta, along with many other provinces in Canada. These include Quebec, Ontario, Nova Scotia, Labrador, and Newfoundland. Since several private insurers operate in these provinces, they compete against one another to keep the premiums affordable. Besides, these insurers tend to provide greater coverage to benefit their clients while competing among themselves.
Being a car owner, you get to cherish the liberty to narrow down your options by shopping around. Your insurance broker can also help you with multiple quotes from different private insurance companies.
However, while comparing car insurance in BC vs Alberta, it pays to know what public insurance is. In some provinces in Canada, the insurance industry is operated solely by the government.
Therefore, the respective provincial governments in British Columbia, Saskatchewan, and Manitoba manage car insurance policies. This explains why drivers can choose from fewer coverage options. However, car owners still have the privilege to add further coverages as per their requirements.
Therefore, you need to purchase a public insurance policy if you are a resident of British Columbia. On the other hand, residents of Alberta have to go for private car insurance policies.
Car insurance rates in British Columbia
The ICBC (Insurance Corporation of British Columbia) has the sole hand in determining the average auto insurance cost in British Columbia ($ 1,832 a year on average). In this province, car owners need to purchase these insurance policies out of compulsion.
- Enhanced accident benefits
- Third-party liability
- Inverse liability protection
- Underinsured car protection
- Basic coverage for vehicle damage
Insurance Corporation of British Columbia is the public insurance provider in British Columbia. However, car owners can purchase these policies through one of the established brokers. Besides dealing with car insurance, ICBC also processes the car’s registration and driving license.
After getting these mandatory coverages, you can go for further protection like collision coverage, rental car coverage, and comprehensive coverage.
Car insurance policy in Alberta
On average, car owners in Alberta need to shell out $1,316 a year to cover their vehicles. However, your insurance premiums may significantly vary depending on the car’s make and model, your driving habits, your driving record, and the locality you reside in.
In Alberta, the mandatory car insurance coverage includes:
- Accident benefits
- Third-party liability
- DCPD (Direct Compensation for Property Damage)
Therefore, when you compare rates for car insurance in Alberta vs BC, it appears that drivers in British Columbia need to adhere to stricter mandatory insurance schemes.
Now that you need to work with private insurers in Alberta, it’s imperative to settle for at least the minimum coverage. Your insurance broker will help you choose the optional coverages and add-ons. Just like in British Columbia, you can choose comprehensive coverage, collision coverage, rental car coverage, and other add-ons.
In Alberta, most car insurance policies come with the SEF 13D endorsement. This imposes a limitation on the coverage caused by chips, rocks, and other debris. If you are a resident of Alberta, you must be familiar with perils such as hailstorms. This province also has a greater number of gravel roads full of rocks. Evidently, drivers need to get their windshields repaired or replaced at frequent intervals. As a result, the number of glass claims tends to be significantly higher in Alberta. Along with this comes higher insurance premiums.
Is the SEF 13D endorsement suitable for you in Alberta?
The benefit of having the SEF 13D endorsement is that you would be shelling out much lower for your comprehensive insurance policy. Insurance brokers can recommend you to reputed providers who slash the rates to almost half. This implies that you would be shelling out the repair costs for glass damage. If you frequently drive through Alberta roads, you know how flying rocks damage windshields.
In case the glass coverage you need is significantly high, you won’t benefit from the endorsement.
The DCPD model in Alberta
Although other provinces in Canada adopted the DCPD model earlier, Alberta has been following this model since 1st January 2022. If you are involved in an accident for no fault of yours, you will receive compensation directly from your own insurance provider. So, you need not chase the at-fault driver to obtain compensation through their insurance provider. Your own insurance company will take care of the damage and help you with the compensation.
Evidently, DCPD is beneficial for car owners, as it saves them time and money. Besides, you need not follow up with the court on specific dates.
Alberta car insurance vs BC car insurance rates — Endnote
Now that we are at the end of our Alberta car insurance vs BC car insurance discussion let’s understand how you can get the least quotes while insuring your cars. One of the best tactics is to work with reputed insurance brokers. This ensures that you remain updated with the latest quotes from multiple insurance providers in Canada.
Insurance advisors also help their clients benefit from rebates and discounts. Being informed professionals, they can assist you in narrowing down your options and comparing the best rates and coverage benefits. No wonder why most car owners in Alberta and British Columbia work closely with brokers. The advisors can also put you on the right track when it comes to choosing the add-ons or filing a claim.