How Much Does Insurance Usually Cost for A New Driver in Alberta?

If you've recently earned your driver's licence, you're probably eager to hit the open road. And who can blame you? However, as excited as you may be, there are a number of tasks that you need to take care of before you can enjoy your newfound freedom. 

One of the essential things that you need to do is invest in an auto insurance policy from an insurance company in Alberta.

If you're a new driver, you may not know how much money you should put aside for your auto insurance needs. This leads us to today's question, "how much is insurance for a new driver in Alberta?".

This is a difficult question to answer, as there are a number of variables that can influence a new driver's insurance rates.

That being said, taking the time to familiarize yourself with the factors that affect the insurance costs for new drivers in Alberta can help you make an informed decision when you purchase a car insurance policy. 

Want to get started? Be sure to continue reading!

How much is insurance for a new driver in Alberta? — An expert guide

Unfortunately, there isn't a concrete "average" auto insurance rate for new motorists in Alberta. Car insurance companies in Alberta take a wide variety of factors into consideration (we'll touch on these later on) while determining a motorist's insurance rates. 

Additionally, young, new drivers tend to be scrutinized more than old, new drivers, which can make it even more challenging to pinpoint an exact average.

That being said, even though we can't provide you with the average insurance cost in Alberta for a new driver, we can say that new drivers can expect to pay anywhere from $1,500 to $7,000 (annually) for auto insurance coverage in Canada.

Although this is a relatively wide range, new drivers can use it as a general reference while comparing auto insurance quotes for the first time.

3 factors that affect the cost of new driver insurance in Alberta

Each car insurance company assesses a variety of different factors while determining a driver's auto insurance rates (new or otherwise). However, most (if not all) car insurance companies in Alberta take the following factors into consideration while determining a motorist's rates:

• The age of the driver
• The location of the driver
• The type of car the driver wishes to insure

How does age affect insurance costs for a new driver in Alberta?

A driver's age plays a massive part in determining their insurance rates. Generally, young drivers (motorists under the age of 25) tend to pay more for auto insurance coverage than older drivers that live in the same area/drive the same type of vehicle. This is primarily due to the fact that young drivers are more likely to make risky decisions than older motorists. 

Additionally, younger drivers aren't as mentally developed, which makes it more difficult for them to make quick, in-the-moment decisions (especially in life-or-death situations). Because of this, young drivers are at a higher risk of accidents, collisions, etc., which results in more payouts for car insurance companies.

However, if you complete the required classes and in-car hours at a driver's training school, you can earn a three year credit certificate which can help you reduce your insurance rates.

How does the driver's location affect insurance rates in Alberta?

Alberta is a vast province that's home to a variety of communities ranging from small, rural towns to large, densely-populated cities. Most people know that their location affects their home insurance rates, but many forget that it influences their car insurance rates as well.

For instance, drivers that live in highly-populated cities tend to pay more for coverage than motorists (with similar levels of driving experience, driving history, etc.) that live in a rural setting. 

This is due to the fact that drivers in large cities are more prone to accidents, theft, etc. than drivers in rural areas. In turn, these drivers are more likely to make a claim, which results in higher/more consistent payouts for insurance companies, which can be costly in the long run. To make up for the losses, car insurance companies need to charge drivers in large cities more for coverage.

How does the make/model of a vehicle affect the cost of insurance for a new driver in Alberta?

Regardless of whether you're a brand-new driver or have been driving for decades, the make/model of the vehicle you want to insure has a substantial impact on your insurance rates.

Generally, the more expensive a vehicle is, the more it will cost to insure. This is once again due to the fact that insurance companies will have to cover a larger amount when the driver files a claim (in comparison to a driver with a modestly-priced vehicle).

Additionally, as beneficial as they are for the environment, owning an electric vehicle can affect your insurance rates as well. Electric vehicles are composed of a variety of expensive, high-end parts which (in some cases) require specialized mechanics to repair or replace. So, if you get into an accident and damage your electric vehicle, your insurance company will most likely need to pay more than they would have if you damaged a gas-powered vehicle.

However, Canada is planning on banning the sale of gas-powered vehicles within the next decade or so, which means that electric vehicles will become the norm. Learn more about the upcoming ban on gas-powered vehicles in Canada.

Save up to 25% when you bundle multiple insurance policies with the help of a Surex insurance advisor

As a new driver, you probably know that finding affordable insurance can be quite a challenge. Thankfully, it's far from impossible; all you need to do is team up with your personal Surex insurance advisor.

Whether you have questions like, “how much is insurance for a new driver in Alberta?”, or want to jump right into comparing quotes, your Surex insurance advisor is here to help. With the help of your advisor, you can start comparing some of the cheapest insurance quotes in ten minutes or less.

Contact your personal Surex insurance advisor today to learn how we can help you team up with a top-rated insurance company. Don't forget to ask your advisor about any bundling options that are available! Bundling is a fantastic way to reduce your premium by a substantial amount, sometimes as high as 25%!