Once you’ve learned to drive, you may be in a hurry to get on the road. But before hopping in the car there are a few things we need to know. Here are the basics about car insurance in Alberta, as well as some information on registering your vehicle.
Is auto insurance mandatory in Alberta?
Yes! Drivers in Alberta are required to have car insurance that includes both third party liability and accident benefits. Drivers aren’t required to have insurance that covers damages to their own vehicle, but many opt for it.
What does insurance “premium” mean?
This is often one of the first questions new drivers ask – what does insurance premium mean? In simple terms ‘premium’ means ‘price’. The premium is the price you need to pay for the insurance policy you are purchasing. You will pay your premium on a monthly basis to maintain your car insurance policy. Factors such as the type of car you drive, your age, and gender determine your premium amount. Alberta uses the grid rating system to ensure car insurance premiums are aligned across the province.
What is the grid rating system?
Alberta’s grid system sets the maximum premium insurance companies can charge for basic coverage. The system functions as an insurance cap, ensuring that drivers don’t pay more for coverage than what their grid level dictates. The grid level is a complex calculation based on a number of factors. The best way to determine yours is to consult a broker or agent in the auto insurance industry.
What can I do to lower my insurance premium?
If you’re a new driver, taking a driver’s education course will help you save on premiums. You should also strive to keep a clean driving record. Accidents for which you were at fault and traffic tickets can significantly raise your insurance rates. Accidents stay on your record for 6 to 10 years and tickets, 3 years.
Additionally, note that safer vehicles are cheaper to insure. Typically, the better the vehicle is able to protect you and your passengers in a collision, the lower the insurance rates.
For additional ways to obtain cheap car insurance, and to get precise auto insurance quotes, consult a good brokerage. Edmonton drivers can find the best coverage for them by working with HDF Insurance.
How does registration work?
To register a vehicle, you need to bring the following to a registry agent:
- A proof of ownership document (such as a lease, bill of sale, probated will or letters of administration)
- Proof of valid car insurance for the vehicle
- Acceptable I.D.
If you’re registering a used vehicle bought outside of the province, you may require an inspection as well. Registration costs $84.45.
Can I use the registration and licence plate from my old vehicle?
If you already have valid registration and a valid licence plate, you can use it on a new vehicle. But you will have to first fill out a request at the registry. Transferring your registration and plate costs $22.45
If you’re currently shopping for car insurance, consider working with a brokerage that knows the ins and outs of the auto insurance industry. This way you’ll get the maximum coverage at the best possible rates. The best resource for Edmonton drivers is HDF Insurance. Contact us today!