Car insurance is a legal requirement in Canada, and Calgary is no exception. While most drivers know they need car insurance, many are unsure about the specifics of their policy or how to choose the right coverage for their needs. In this guide, we'll go over everything you need to know about car insurance in Calgary, from the minimum coverage requirements to the types of coverage available and how to find the best rates.
Calgary is the largest city in Alberta and home to over 1.3 million residents. It's no surprise that with so many drivers on the road, car accidents are a common occurrence. In fact, in 2019, there were over 28,000 reported collisions in Calgary, resulting in over 7,000 injuries and 29 fatalities. That's why having the right car insurance coverage is so important. Not only is it a legal requirement, but it can also protect you financially in the event of an accident.
The Minimum Car Insurance Requirements in Calgary
In Calgary, like the rest of Alberta, drivers are required by law to carry a minimum amount of car insurance. This includes:
| Coverage | Minimum Required Amount |
|---|---|
| Third-party liability | $200,000 |
| Accident benefits | $50,000 |
| Uninsured motorist coverage | $200,000 |
Third-party liability insurance is the most important coverage, as it protects you if you're found to be at fault in an accident and someone else is injured or their property is damaged. Accident benefits coverage provides compensation if you or your passengers are injured in an accident, regardless of who is at fault. Uninsured motorist coverage is also mandatory, as it protects you if you're involved in an accident with an uninsured driver.
Additional Car Insurance Coverage Options
While the minimum coverage requirements in Calgary will keep you legal, they may not provide enough protection in the event of a serious accident. That's why many drivers choose to add additional coverage options to their policy. Here are some of the most common:
Collision Coverage
Collision coverage protects you if your car is damaged in a collision, regardless of who is at fault. It can cover the cost of repairs or the value of your car if it's a write-off. This coverage is especially important if you have a newer or more expensive car.
Comprehensive Coverage
Comprehensive coverage provides protection for non-collision events, such as theft, vandalism, or natural disasters. It can also cover damage from hitting an animal or falling objects. This coverage is also important if you have a newer or more expensive car.
Specified Perils Coverage
Specified perils coverage is similar to comprehensive coverage, but it only covers specific named perils, such as fire, theft, or lightning. It's a more affordable option than comprehensive coverage but offers less protection.
Additional Liability Coverage
While the mandatory minimum amount of third-party liability coverage in Calgary is $200,000, many drivers choose to increase this amount to provide more protection in the event of a serious accident. It's not uncommon for drivers to carry $1 million or more in liability coverage.
Loss of Use Coverage
Loss of use coverage provides compensation for alternate transportation if your car is in the shop for repairs after an accident. This can include the cost of a rental car or public transportation.
How Car Insurance Rates are Calculated in Calgary
Car insurance rates in Calgary are calculated based on a variety of factors. These include:
- Your driving record
- The type of car you drive
- Your age and gender
- Your location
- Your credit score
- The amount of coverage you choose
If you have a clean driving record and drive a safe, reliable car, you'll likely pay less for car insurance than someone with a history of accidents or a flashy sports car. Young drivers and male drivers also tend to pay higher rates than older drivers and female drivers.
To find the best car insurance rates in Calgary, it's important to shop around and compare quotes from multiple providers. You can also take advantage of discounts for things like bundling your home and auto insurance, having a good driving record, or completing a defensive driving course.
How to File a Car Insurance Claim in Calgary
If you're involved in an accident or need to make a claim on your car insurance policy, it's important to follow the proper procedures. Here's what you need to know:
- Report the accident to the police if there are injuries or significant damage.
- Exchange information with the other driver, including names, license plate numbers, and insurance information.
- Contact your insurance provider as soon as possible to report the claim.
- Provide your insurance provider with all the necessary information, including a description of the accident, any injuries or damage, and the names and contact information of any witnesses.
- Follow the instructions provided by your insurance provider, including getting an estimate for repairs and arranging for a rental car if necessary.
If you're unsure about what to do after an accident or how to file a claim, your insurance provider can provide guidance and support.
Common Questions About Car Insurance in Calgary
How can I lower my car insurance rates in Calgary?
There are several ways to lower your car insurance rates in Calgary, including:
- Increasing your deductible
- Bundling your home and auto insurance with the same provider
- Completing a defensive driving course
- Maintaining a clean driving record
- Driving a safe, reliable car
Do I need to purchase additional coverage if I'm already carrying the minimum required by law?
While the minimum coverage requirements in Calgary will keep you legal, they may not provide enough protection in the event of a serious accident. Adding additional coverage options, such as collision or comprehensive coverage, can provide more protection and peace of mind.
What should I do if I'm involved in a hit and run accident in Calgary?
If you're involved in a hit and run accident in Calgary, you should follow these steps:
- Call the police and report the accident.
- Write down as much information as possible about the other vehicle, including the license plate number, make and model, and any distinguishing features.
- Contact your insurance provider to report the accident and provide them with all the information you have.
Even if the other driver is never found, you may still be able to make a claim on your car insurance policy if you have uninsured motorist coverage.
Conclusion
Car insurance is a necessary expense for all drivers in Calgary. While the minimum coverage requirements will keep you legal, it's important to consider additional coverage options to provide more protection in the event of an accident. By shopping around and comparing quotes from multiple providers, you can find the best rates and coverage for your needs.