Buying a New Car in Alberta? Here is How to Insure It

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on October 7, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated October 7, 2024

Visit author page

3 minute read

Article Contents

Purchasing a new car in Alberta is an exciting experience, but it also comes with the responsibility of ensuring it is properly insured. Knowing how to purchase car insurance in Alberta is important, whether you’re buying your very first car or adding another one to your garage. Read on to find out how much insurance you need and exactly how to insure your new car.

Insuring a New Car In Alberta at a Glance

  • A brand-new car usually costs more to insure than a used one.
  • Adding optional coverage and endorsements on your insurance policy is a good way to protect yourself against most damage.
  • Alberta’s auto insurance premiums have been rising steadily for the past few years.

Is Insurance Required Before You Drive?

In Alberta, having car insurance is not just a good idea – it’s the law. To legally drive your new vehicle, you must have at least the minimum required coverage, which is $200,000 in third-party liability coverage. This protects you if you’re responsible for damages or injuries to others. This minimum required insurance also includes accident benefits coverage, which provides essential medical and rehabilitation benefits in case of an accident.

While collision and comprehensive coverage are optional, they can be very beneficial, especially if you have a new or high-value vehicle.

Transferring Insurance to Your New Car

After purchasing your new vehicle, you have a 14-day grace period to transfer your license plate and registration from your old car to the new one. During the registration transferral process, you can put your existing license plate onto your new car.

However, you must ensure your existing insurance is still valid for the new vehicle during this time. If you’re switching cars, contact your insurance provider to transfer your existing insurance policy or take out a new one before hitting the road.

Step-by-Step Guide to Insuring Your New Car

Insuring your new car can be a bit intimidating, especially if you’re not familiar with the process. Here’s a straightforward guide to help you navigate the insurance process for your new vehicle in Alberta:

Step 1: Gather Necessary Documents

Before you start shopping for insurance, make sure you have the following documents ready:

  • Bill of Sale or Lease Agreement: This proves your ownership of the vehicle. You can get this from the dealership or person you bought the car from.
  • Driver’s Licenses: You’ll need the licenses for all drivers who will be listed on the policy. If you plan to have a student driver, you’ll need their G1 license as well.
  • Vehicle Registration: If you’re transferring an existing vehicle’s registration, have that information available.
  • Inspection Report: If your vehicle is over 12 years old, you’ll need a passing inspection report issued within the last 14 days. For new cars, this shouldn’t be an issue.

Step 2: Assess Your Coverage Needs

Consider your driving habits, the value of your vehicle, and your financial situation. If you have a new or high-value car, all-perils coverage might be worth the investment. On the other hand, if you have an older vehicle, you might opt for just the mandatory coverages.

Step 3: Shop Around for Quotes

Contact multiple insurance providers to get quotes. MyChoice offers online tools to help you compare rates along with a car insurance calculator to help you determine how much your insurance rates will come out to. Be sure to ask your insurance company about discounts for safe driving, bundling policies, or completing driver education courses.

Step 4: Review Policy Details

Once you receive quotes, review the details of each policy carefully. Consider what kind of coverage you need, the deductibles available, exclusions, available endorsements, and additional benefits of each policy. These details will play a large part in determining how much protection your policy will provide, as well as how much you’ll be paying for it. It’s important to understand exactly what is included with your auto insurance policy, so don’t be afraid to ask your insurance provider any questions that will help you make an informed decision.

Step 5: Finalize Your Insurance

After selecting a policy that fits your needs, contact the insurance provider to finalize the paperwork. You will need to provide the documents gathered in Step 1. Ensure you receive proof of insurance, which you will need to register your vehicle.

Step 6: Register Your Vehicle

With your insurance in place, you can now register your vehicle with the Alberta government. You will need to provide the following documents:

  • Proof of insurance
  • Bill of sale or lease agreement
  • Identification

After following these steps, you’ll have your Alberta auto insurance policy ready to go. Make sure to keep your proof of insurance with you in your vehicle whenever you’re driving.

Choosing the Right Coverage

Alberta’s insurance laws require certain coverages, but you also have options to enhance your protection. Here’s a quick breakdown of available auto insurance coverage types:

The legally required minimum insurance you need to be able to drive. If you’re found at fault for an accident, this will help you pay for any damages to other vehicles or property.

Covers damage to your vehicle from collisions, regardless of fault.

Protects against non-collision-related incidents like theft, fire, or vandalism.

The most all-encompassing type of coverage. This covers vehicle damage from incidents caused by collisions and other kinds of incidents.

Given that Alberta has a high rate of vehicle theft – accounting for 30% of Canada’s total despite having only 11% of the population – comprehensive coverage is particularly advisable, especially if you live in urban areas like Calgary.

Key Advice from MyChoice

  • Before you can drive your new car, you need to have at least the minimum required liability insurance.
  • Shop around and compare policies to find the cheapest auto insurance rates in Alberta.
  • You can temporarily use your old license plate for 14 days when transferring your vehicle registration from an old car to your new one.

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