4 Reasons to Get a Car Insurance Quote in Red Deer
- Compare auto insurance quotes from 10 car insurers
- Save several hundreds of dollars on your Red Deer car insurance
- Invest 5 minutes to find out if you are paying too much today
- Talk to a car insurance professional
Welcome to the complete car insurance guide for Red Deer, the place to find out about average car insurance rates, savings opportunities, car insurance myths, helpful tips, and more. You’ll also have an opportunity to get a car insurance quote from more than 30 Canadian insurers.
What are typical Car Insurance rates in Alberta?
These average car insurance rates will give you an idea of typical premiums in Alberta and Canada. The first chart compares rates across several Canadian provinces, while the second chart compares rates across age brackets. As you can see, the differences can be considerable.
Until late 2019, car insurance rates in and around Red Deer, Lacombe, and Big Valley were around $85 and $110 monthly. In Q4 2019, the Alberta Automobile Insurance Rate Board approved significant rate increases for several auto insurers and since then, Alberta drivers have seen their rates going up.
However, rates are strongly impacted by numerous factors including your driving history, car insurance policy type, car make/model, etc.
Get to know all Car Insurance components
| Insurance component | Description | Type |
|---|---|---|
| Collision insurance | Physical damage to your car from an accident or from colliding with another vehicle is covered by collision insurance. If the car must be written off, collision insurance pays a reasonable cost to replace it. If your car is not too old, it is highly recommended to have this type of coverage. | Not mandatory |
| Liability insurance | Liability insurance covers damages caused to another person or vehicle in an accident. It’s important to get more than just the mandatory coverage level as damages for medical bills, lost earnings, legal fees and more can go into the millions. This mandatory coverage varies across the provinces, but it is not expensive (so be sure to top it up to be better protected). | Mandatory |
| Comprehensive insurance | Purchase comprehensive to protect yourself from non-accident related damages that affect your car, such as extreme weather, flooding, and vandalism. | Not mandatory |
| All perils | This protection is for when someone in your household steals your car, or it is damaged by an additional driver. | Not mandatory |
| Uninsured motorist / Hit-and-run coverage | Some drivers illegally operate without coverage, or flee the scene of an accident (hit and run). This coverage protects you financially from these irresponsible individuals. | Mandatory |
| Accident Benefits | Medical expenses, income replacement, and other such expenses are covered by accident benefits. | Not mandatory |
What cars are the most expensive ones to insure?
The cost to insure cars depends on the type of claims made against them including accident benefits insurance claims, collision insurance claims, comprehensive insurance claims, and direct compensation property damage insurance claims. Here are some examples of cars (model years 2014-2018) that drive high insurance costs:
- BMW X6
- BMW 4th series
- Tesla Model S
- Cayenne
- BMW 3rd series
- Audi Q7
- Mercedes-Benz S series
- Hyundai Genesis
- Audi S5
- Mercedes-Benz CLS
- Mercedes-Benz C series
- Audi A5
- Subaru/Toyota BRZ
- Dodge Charger Ford Mustang
- Lexus IS
Other aspects like your driving habits, age, driving history, location, policy type and coverage impact your insurance rates too. Remember, your car’s model/make alone is not a good indicator of insurance rates.
6 Ways to save on Auto Insurance in Red Deer
- Car Insurance Deductibles: Experienced drivers can lower their premiums by increasing their deductibles. This strategy only works, however, if you can manage a higher initial payout after an accident.
- Drop the Glass Coverage: If it won’t be too expensive to replace your windshield, drop your glass coverage and save that money on your premium.
- Minimal Coverage: Did you know that you can adjust your policy based on the value of your vehicle? While not recommended, you could reduce your policy to liability only, as that is the minimum required by law. This covers you if you damage someone else’s vehicle, but it doesn’t cover damages to your own.
- Short Distance to Work: The closer you live to work, the more money you’ll save on your premium. Consider that when house hunting.
- Annual vs. Monthly Payments: Insurers save processing and admin costs when you pay annually instead of monthly, and they pass those savings on to you.
- Anti-Theft System: An anti-theft system not only lowers your risk, it can lower your premium as well.
Red Deer Auto Insurance quotes, examples
Sample car insurance quote #1:
A male driver, 45 years old, from Red Deer, has no claims in the last three years, no at-fault accidents, and no license suspensions. Vehicle: 2018 Mazda 3 GX, CAA member, comprehensive coverage (including collision). Policy: $1,000 deductible, 3rd party liability – $2,000,000.
$ 112 per month ($1,344 annually)
Sample car insurance quote #2:
A female driver, 52 years old, from Red Deer, has no claims in the last three years, no at-fault accidents, and no license suspensions. Vehicle: 2014 Ford Escape, collision-only coverage (no comprehensive). Policy: $1,000 deductible, 3rd party liability – $1,000,000.
$ 66 per month ($792 annually)
Sample car insurance quote #3:
A female driver, 34 years old, from Red Deer, has no claims in the last three years, no at-fault accidents, and no license suspensions. Vehicle: 2016 Toyota Camry, comprehensive coverage (including collision). Policy: $1,000 deductible, 3rd party liability – $1,000,000.
$ 175 per month ($2,100 annually)
Car casualty rates in Alberta (including Red Deer)
Based on casualty statistics from Transport Canada (2018), Alberta drivers appear less safe than QC or ON drivers. However, Alberta drivers also have less fatalities per 100,000 licensed drivers than SK or NS. Alberta falls in the middle of the pack among Canadian drivers.
| Province | Fatalities per 100,00 licensed drivers | Injuries per 100,00 licensed drivers |
|---|---|---|
| NU | 74.2 | 928.0 |
| YT | 24.1 | 681.1 |
| SK | 15.8 | 517.5 |
| PE | 13.2 | 573.8 |
| NS | 10.2 | 978.9 |
| NB | 9.0 | 484.3 |
| AB | 9.0 | 530.0 |
| BC | 8.0 | 555.7 |
| MB | 7.6 | 1310.0 |
| NT | 7.6 | 382.5 |
| Canada | 7.2 | 575.0 |
| NL | 6.6 | 460.8 |
| QC | 6.4 | 622.1 |
| ON | 5.8 | 491.3 |
Car Insurance in Red Deer – what you must know
- In Red Deer, and in all of Alberta, car insurance is required by law. Alberta is one of the provinces in Canada that uses a tort-based system.
Under a tort-based system, an insurance company can pay for some of your costs but if you are not at fault, you can also sue the other party to get compensation from their insurance company.
- Liability coverage is mandatory. This is the minimal third party liability coverage that is required by law, and it is a part of every car insurance policy. In Alberta, the coverage is $200,000.
- While $1,000,000 in liability coverage is good, it is better to have $2,000,000. Liability expenses can add up quickly.
- The maximum limit for medical benefits is capped at $50,000 per person.
What cars are the least expensive ones to insure?
Some cars are less likely to get into an accident or, if involved, the associated costs and expenses for damages are lower. Here are examples of cars (model years 2014-2018) that cost less than others to insure.
- Smart Fortwo
- Ford F150
- Nissan Frontier
- Chevrolet Tahoe/Yukon
- Chevrolet Silverado/Sierra
- Fiat 500
- Ford Mustang Convertible
- Jeep Wrangler
- Buick Encore
- Honda CR-V
- Jeep Compass
- Chevrolet Equinox/Terrain
- Nissan Xterra
- Honda Pilot
- Hyundai Accent
The car model is just one of the many variables that influence your insurance rates. Your personal driving history impacts your rates far more than the car’s make and model.
5 Car Insurance myths to know
Myth #1: Car insurance rates for cheaper cars are lower
Car insurance is not necessarily cheaper for cheaper cars. Instead, it is driven in part by the history of the car model itself. Honda Civics, for example, typically cost more to insure than some other more expensive models.
Myth #2: You can always be added as a second driver on your parent’s insurance policy
This is insurance fraud called fronting. If you do this in an attempt to lower your rates, your insurer can refuse your claim.
Myth #3: It is more expensive to insure red coloured cars
It’s a longstanding myth, but it is not more expensive to insure red cars. The colour does not impact the rate, so, go ahead and get a blue, black, or even pink or green car!
Myth #4: Insurance works in the same way across all Canadian provinces
Systems vary by province. Some use a no-fault system, some use a tort (at-fault) system. The system used defines whose insurance company pays for a claim and the ability of one side to sue the other. In some provinces only certain insurers can provide insurance. In MB, SK and BC it is MPI, SGI and ICBC respectively.
Myth #5: Damages to your car are always covered
You are not automatically covered. You must pay for collision coverage to protect against damage to your vehicle.
Frequently Asked Questions (FAQ): Car Insurance in Red Deer
Some car brands like Hyundai, Nissan, Ford, Buick, Chevrolet, and Jeep cost less to insure when compared so some series of BMW, Mercedes-Benz, Audi, and Lexus. This makes sense because more expensive cars mean higher repair costs. Look at the tables above for more about these makes and models.
Car insurance costs in Red Deer, AB depend on a variety of factors. Typically, Red Deer drivers can expect to pay between $85 and $110 monthly. In Q4 2019, the Alberta Automobile Insurance Rate Board approved significant rate increases for several auto insurers, leading to some drivers in Alberta drivers seeing rate spikes up to 30%. If you have two violations in the last three years (not including parking tickets) you will pay 20%-35% higher rates; and, if you have a history of serious driving offenses, your rates can double. Young drivers can also expect higher auto insurance rates.
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