What to Know About Mandatory Car Insurance Coverage in Alberta
If you think car insurance is just a great financial product to have in order to reduce your out of pocket costs in case of an accident, theft or damage, you're right. But did you know that it's not an option in some provinces? That's right: if you own or are thinking of purchasing a car in Alberta, car insurance isn't just a good idea. It's mandatory.
How does car insurance work in Alberta?
Regulators have recently made several changes to car insurance rules in Alberta. This includes how the rates are calculated as well as how much private insurance companies can charge clients for insurance premiums.
There have also been changes made to the type of mandatory car insurance coverage that all drivers in the province of Alberta must have when operating a vehicle.
What insurance is mandatory?
Alberta requires that all drivers have a basic amount of car insurance, which covers property damage in case of an accident, death of drivers and passengers when tragedies are fatal, as well as liability insurance.
Although collision and comprehensive coverage are not mandatory for drivers in the province of Alberta, it's a good idea to purchase both. The more extensive your Alberta car insurance policy is the more coverage you have and therefore the lower your out of pocket expenses will be in case of an unforeseen event.
Why should I buy additional car insurance?
Mandatory car insurance in Alberta only covers the basic scenarios mentioned above -- and those are also the worst case scenarios where property and people are injured. It's a good idea to buy additional collision and comprehensive car insurance to cover everyday mishaps such as minor accidents where your car is damaged, as well as vandalism or theft.
What happens if I don't buy car insurance?
Car insurance in Alberta is required for all motorized vehicles including (but not limited to) cars, trucks and motorcycles. The province is very strict when it comes to enforcing the mandatory car insurance laws.
According to Calgary Legal Guidance "You could be fined no less than $2,500 for the first offence of driving without insurance and if you are charged a second time within 1 year, you will receive a mandatory jail sentence of at least 30 days and possibly up to 6 months. Without insurance, you are also personally responsible for the damages to the other person and their property if you are in a motor vehicle accident that is your fault."
Those fees and fines can add up to a lot of money. It's a much smarter financial idea to abide by the required insurance laws.
The good news about all this is with the vast amount of car insurance required in Alberta the marketplace is flooded with several insurance companies for you to choose from. If you need car insurance in Alberta, it’s best to get several and find the best insurance policy for your needs.