Auto Insurance

Whenever you get behind the wheel of a car, you are capable of causing damage to other people’s property, and injuring or killing yourself, other drivers, passengers and pedestrians. Because most people don’t have the money to pay for the losses they might cause while driving, governments throughout the developed world require drivers to carry a certain amount of insurance (“Liability”) to cover any losses (property damage, injury, death) they might cause others to experience. Some governments, including those of every province and territory in Canada, also require drivers to carry coverage for their own medical expenses and loss of income resulting from driving-related injuries (“Accident Benefits or "AB”).

There is other insurance that you can purchase voluntarily for your car, including coverage for damage to your car (“Collision”) and protection against theft, vandalism and other perils (“Comprehensive”).

Auto insurance in Alberta is provided by almost 70 private companies that compete for customers by offering a different mix of price, coverage and service. Everyone who wants to drive a car in Alberta must by law buy a minimum amount of insurance (see minimums page) and has the option to buy more to suit their needs.

Having the right auto insurance coverage is essential for everyone who relies on their car to get them around. When Albertans are involved in accidents, their insurance companies help them get better, support them if they are unable to work and protect them financially if they hurt someone else and are sued for it.

In Canada, provincial governments decide which mandatory benefits are included in the auto insurance product. The challenge is finding the right balance between affordable price for all drivers and adequate coverage for those who have to make a claim. For instance, if government makes the product very generous, it could become too expensive for many drivers.

Recent changes to Alberta’s auto insurance system helped improve that balance of affordability and adequate coverage (see auto reforms). But more can be, and is being, done to ensure Albertans are receiving the best coverage for the best possible price.