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How Much is Auto Insurance In Alberta? A 2024 Recap

Jan 17, 2025 10:15:00 AM

Auto insurance is a necessity for drivers in Alberta, but how much does it actually cost? In 2024, Armour Insurance analyzed our data to provide a clear look at the average, median, and highest premiums paid by Albertans. With this data, we aim to demystify auto insurance costs and help drivers better understand what factors influence their rates,we aim to help Alberta drivers get a baseline for coverage costs. 

What coverage is on Auto Insurance Policies?

Auto insurance policies in Alberta come in various forms to suit drivers’ needs and budgets. Around 20% of our clients opt for liability only coverage which covers you for property damage or bodily injury. Armour has a minimum liability limit of $2 million per policy. About 10% of drivers opt for comprehensive-only coverage, which excludes collision but covers non-driving risks like fire, theft, or vandalism. The remaining 70% of our policies include collision and comprehensive coverage, providing protection for damage to your own vehicle in most scenarios.  

How Much Is Car Insurance In Alberta in 2024?

Average Annual Insurance Premium $2,647
Average Monthly Insurance Premium $228.36
Median Annual Insurance Premium $2,136
Median Monthly Insurance Premium $184.23
Most Expensive Annual Premium $15,270
Most Expensive Monthly Premium $1,317.04

Why is the Average Car Insurance So Much Higher Than the Median Car Insurance Cost?

The average auto insurance premium is over $500 more than the median auto insurance premium. Around 20-30 exceptionally high-cost premiums have swayed the average car insurance premium by nearly 24%. Exceptionally high-cost car insurance (over $10,000 annually) is typically only the case for high value vehicles, drivers with poor driving records/insurance records, or some combination of the two. 

How much is the average car insurance policy in Alberta 2024 (1)

What to Expect for Car Insurance In 2025?

In November 2024, the Alberta government announced sweeping changes to the auto insurance industry. The 2 year implementation plan outlined includes reforms to the claims process, claims payments, the right to sue at-fault parties, and more. The government also announced a 7.5% rate increase for safe drivers. Drivers who do not meet the qualifications of "safe driver" will likely see a premium increase over 7.5%. If you're a safe driver paying $2,000/annually for car insurance, you will likely see an increase to $2,150, provided no other risk factor has changed. 

What-is-a-safe-driver-alberta-graphic

Conclusion

Auto insurance is a critical part of driving in Alberta, and understanding its costs is key to making informed decisions about your coverage. By analyzing 2024 premium data, we’ve highlighted the wide range of insurance costs and the factors that influence them, from vehicle type to driving history. With upcoming changes to auto insurance in Alberta, staying informed will help drivers adapt to new regulations and ensure they’re properly protected. Whether you’re looking to save on premiums or better understand your coverage, knowing the trends and factors behind auto insurance is the first step toward making confident decisions.

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Notes About Data

  • The average insurance premiums are calculated by the total premium paid divided by the total number of policies.
  • Median insurance premiums are calculated by taking the value in the middle of the data set of all premiums.
  • Monthly payments are calculated, assuming a 3.5% financing fee on the total premium.
Jake McCoy

Written by Jake McCoy

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