Ways Of Getting Auto Insurance In Alberta
Auto insurance is required by law everywhere in Canada. As per Alberta law, it is mandatory to have a basic auto insurance plan for any citizen having a car or any type of vehicle. However, having additional coverage is not mandatory. Basic auto insurance provides third-party-related coverage and coverage against accidents. As basic coverage of automobile insurance is made compulsory by the government, the maximum premium amount is also fixed by the government only. This is done to make it affordable for citizens.
There are two major parts that any Alberta Auto Insurance policy must cover:
1. Personal liability and property coverage (PLPD):
It covers the cost of damage caused by the incidents for which you are responsible. There can be a legal suit filed against you by a third party for any vehicle damage, property damage, injury, or even death. Also known as Third-party coverage.
2. Accidental Coverage:
The benefit provides coverage for damage regardless of who caused the damage. These benefits are also known as no-fault benefits and cover expenses related to medical treatment, loss of income, any rehabilitation needed and even funeral costs in case of death.
Coverage Offered Under Different Type of Auto Insurance Policy
- For PLPD i.e., third-party insurance minimum limit is $200,000.
- For accidental insurance there are three different coverage limits starting from half a million Canadian dollars, $1 million, and $2 million. Although the coverage amount is specific for different claims. Like for medical bills claim it is a maximum of up to $50,000 per accident per individual, for funeral limit is $5,000 per person and income benefits in case of disability is 80% of individual’s weekly income maximum up to $400 weekly. Accidental insurance also provides coverage in case of death.
Auto insurance in Alberta is monitored by the Automobile Insurance Rate Board (AIRB) and the authority to regulate auto insurance rates. AIRB also has the power of making changes required in the fillings of Alberta’s premium programs. The auto insurance in Canada goes with the vehicle, like if you are renting a car with valid auto insurance, then it will work for you if you have a driving license. Although the basic plan fulfils the legal requirement but does not provide enough financial coverage. Therefore, most Alberta goes to purchase additional coverage for auto insurance. You can anytime purchase additional coverage on your basic plan. As buying additional coverage is completely optional, there is no limit for the maximum cost of the premium.
The most common optional coverage plans available for auto insurance in Alberta are collision insurance and comprehensive insurance. The insurance covers the cost of any physical damage to a vehicle that occurred due to an accident or any other circumstances. Where collision coverage covers damage due to collision, comprehensive insurance covers damage due to any reason be it flood, fire, theft, vandalism, or damage to the windshield.
Cost of Auto Insurance Policy
Statistics shared by the Insurance Bureau of Canada (IBC) states that on average auto insurance in Alberta costs around $1,316 every year i.e., drivers have to pay $110 on monthly basis. However, the cost of insurance is a little higher in Alberta. The cost of auto insurance is comparatively higher as compared to other Canadian provinces apart from Ontario and British Columbia.
Major Factors Influencing Insurance Cost:
If you are renewing your insurance from the same provider then the cost of the premium might also depend upon the claims you recently filled for collision or damage. It will put you in the high-risk zone and your premium could increase depending upon the terms and conditions of the previous policy. The rates of auto insurance policy will vary from provider to provider. It’s entirely your decision to take a new policy or renew your old one.
Before deciding on which plan you want to buy and from which firm it is important that you do in-depth research about different auto insurance policies. You can get the same coverage at different rates from different insurance companies. To get the best coverage at minimal rates you have to explore and compare quotations. And if you, do it on an annual basis before renewal, it can save you on your premium payments. iSmart Insurance is one of the evolving financial and insurance brokers in Calgary. They help you to get clarity on different auto insurance plans. The experienced team of insurance brokers helps you crack the deal with correct insurance coverage that suits your requirement at the best market rate.