What insurance is required to register a vehicle?
In Alberta, vehicle owners are required to carry liability insurance to a minimum limit of $200,000. Proof of this insurance (pink card) must be presented in order to obtain a registration and licence plate from Alberta Registries. Liability insurance, is the coverage that responds to damages you cause to a third party as a result of the negligent operation of your vehicle causing damage (i.e.: causing an accident). Higher limits of liability are available, and are strongly recommended; as well, other optional coverages can be purchased to insure your vehicle.
Collision: this optional coverage will respond to repair your vehicle in the event of an accident.
Comprehensive: this optional coverage provides coverage for your vehicle in the event of specific losses other than collision, such as fire, theft, vandalism, hail/wind damage.
** You have a choice of deductible (the portion of the loss you pay), for both collision & comprehensive optional coverages. Higher deductibles mean lower premiums, while lower deductibles will cause higher premiums.
Loss of Use: This coverage provides funds for a rental vehicle or alternative transportation if your vehicle is unavailable to use due to a claim under either collision or comprehensive coverage.
Waiver of Depreciation: Available to brand new vehicles, this coverage makes up the difference between your purchase price and the depreciated value of your vehicle at the time of a loss – usually this is available for 3 years from the date of purchase.
Endorsement 13d (limited glass): This endorsement is applied to your comprehensive coverage, and removes coverage for vandalism to the front glass (windshield) Applying this endorsement can reduce the amount you pay for the comprehensive coverage.
Do You Need Collision and/or Comprehensive Coverage?
These coverages are optional and can be quite expensive (especially collision). Generally speaking, if the value of your vehicle is less than $4,000 it would make sense to pass on these coverages, as the premiums paid will likely exceed the recoverable damage to your vehicle. As with all insurance it is a choice between the loss you are willing or able to sustain and the premium you can afford to pay.
Controlling Costs of Auto Insurance
There are many factors that determine auto insurance premiums in Alberta, here are some things you can do to help control those costs
- Choose a larger vehicle if you are able, larger vehicles withstand collisions better and often have lower collision premiums
- Declare your kilometers travelled annually, as well as your commute distance to work these factors can impact your rating
- Drive Safe, having a good driving record makes a huge difference to your auto premiums
No at fault accidents
No convictions (speeding tickets, stop sign tickets etc.)
- Take a higher deductible, taking a larger deductible (especially on collision coverage) will bring premiums down
- Maintain and provide proof of your auto insurance, if you can provide proof of continuous auto insurance (even from out of province or country) it will have a huge impact on premiums. Discounts for continuous auto insurance can save you a lot of money!
- Look at discounts for things such as:
Multi-Line (have your tenant or home insurance with the same company as your auto)
Install anti-theft devices
Insure all your vehicles on one policy for multi-vehicle discounts
Make sure you have the renewal or loyalty discounts you are entitled to