Comparing car insurance between Alberta and Ontario requires considering various factors like average rates, regulations, and coverage requirements. Here’s a side-by-side comparison of car insurance in Alberta vs. Ontario:

1. Average Premiums:

• Alberta:
  • Alberta has relatively high car insurance premiums in Canada, but they are typically lower than those in Ontario.
  • The average annual car insurance premium in Alberta was around CAD 1,300 to CAD 1,500.
• Ontario:
  • Ontario usually has the highest car insurance rates in Canada.
  • The average annual car insurance premium in Ontario was around CAD 1,500 to CAD 1,800.

2. Regulation:

Both Alberta and Ontario have regulatory bodies and frameworks that oversee and govern the car insurance industry in their respective provinces. Here’s a comparison of the regulation in both provinces:

Alberta:

1. Regulatory Bodies:
   • Automobile Insurance Rate Board (AIRB): This body is responsible for regulating automobile insurance rates in Alberta. Insurers must get approval from AIRB before they can implement any rate changes.
   • Office of the Superintendent of Insurance: Oversees the licensing and regulation of insurance companies, agents, and adjusters in Alberta.
2. Framework:
   • Private Insurance Model: Car insurance is provided by private insurance companies.
   • Insurers can determine individual premiums based on their approved risk classification system, but any rate changes must be approved by AIRB.
   • The province uses an “at-fault” system, meaning the driver who caused the accident is primarily responsible for the damages.

Ontario:

1. Regulatory Bodies:
   • Financial Services Regulatory Authority of Ontario (FSRAO): This body oversees the regulation of car insurance rates in Ontario. It took over the role from the Financial Services Commission of Ontario (FSCO) in 2019. Insurers must submit proposed rate changes to FSRAO for review and approval.
2. Framework:
   • Private Insurance Model: Like Alberta, car insurance in Ontario is provided by private insurance companies.
   • Rates are determined based on a grid system that considers factors such as at-fault accidents and traffic convictions. However, insurers can apply for exceptions or changes with the FSRAO.
   • Ontario operates under a “no-fault” insurance system. This means that, regardless of who is at fault in an accident, each individual deals with their own insurance company for claims. However, the term “no-fault” can be misleading – fault is still determined after an accident, and it can influence premium adjustments.

Key Differences:

• Regulatory Bodies: While both provinces have their regulatory bodies, they are distinct entities with their own sets of rules and processes.
• Fault System: Alberta uses an “at-fault” system, while Ontario uses a “no-fault” system.
• Rate Approval Process: Both provinces require insurance companies to seek approval for rate changes, but the specific processes, criteria for approval, and timelines may differ.

3. Coverage Requirements:

Car insurance coverage requirements differ between provinces in Canada. Both Alberta and Ontario mandate certain basic coverages for drivers to legally operate a vehicle. Here’s a side-by-side comparison of the mandatory car insurance coverages in Alberta and Ontario:

Alberta:

1. Third-Party Liability Coverage:
   • Covers costs if you are deemed responsible for an automobile accident that causes injury or damage to another party.
   • Minimum coverage required: CAD 200,000.
2. Accident Benefits Coverage:
   • Provides benefits that you, certain family members, and passengers are entitled to receive if injured or killed in an automobile accident. This can include medical treatments, rehabilitation, funeral expenses, and more.
3. Uninsured Automobile Coverage:
   • Provides protection if you’re involved in an accident with an uninsured driver or if you’re involved in a hit-and-run situation and cannot identify the at-fault driver.

Ontario:

1. Third-Party Liability Coverage:
   • Similar to Alberta, this covers you if someone else is killed or injured, or their property is damaged.
   • Minimum coverage required: CAD 200,000.
2. Accident Benefits Coverage:
   • Provides benefits to you, certain family members, and passengers regardless of who caused the accident. Benefits can include income replacement, medical and rehabilitation treatment, attendant care, and more.
3. Direct Compensation-Property Damage (DCPD) Coverage:
   • Covers damage to your vehicle and its contents and for the loss of use of your vehicle or its contents, if another driver was at fault for the accident.
   • It is called “Direct Compensation” because even though someone else causes the damage, you collect directly from your own insurer.
4. Uninsured Automobile Coverage:
   • Similar to Alberta, this coverage protects you if you’re in an accident with an uninsured driver or in a hit-and-run.

Key Differences:

• Direct Compensation-Property Damage (DCPD): This is unique to Ontario and some other provinces and is a result of the “no-fault” insurance system. In Alberta, damages to your vehicle caused by another party would typically be claimed under the at-fault party’s third-party liability coverage.
• Both provinces offer additional optional coverages, such as collision and comprehensive coverages, which can provide further protection but are not legally required.

4. Fault System:

The fault system is a critical aspect of auto insurance, dictating how claims are handled and how fault is determined and assigned after an accident. Here’s a comparison between the fault systems in Alberta and Ontario:

Alberta:

• At-Fault System:
  • Alberta operates under an “at-fault” system, also known as a “tort-based” system.
  • Under this system, after an accident, fault is determined, and the insurance company of the driver found at fault pays for the damages caused to the other party.
  • If you’re deemed at fault, your insurance company will pay for the other party’s damages under your third-party liability coverage. For your own damages, you’d need optional collision coverage.
  • Drivers who are found not at fault can claim from the at-fault driver’s insurance or claim from their own policy if they have the appropriate coverage, without impacting their premiums.
  • Individuals also retain the right to sue the at-fault party for pain, suffering, and other losses above the insurance payout.

Ontario:

• No-Fault System:
  • Ontario operates under a “no-fault” insurance system.
  • The term “no-fault” can be a bit misleading. It doesn’t mean that fault isn’t determined after an accident. In fact, fault is still assigned after an accident using the “Fault Determination Rules” set out in the Insurance Act.
  • What “no-fault” really means is that each driver deals with their own insurance company regardless of who was at fault in the accident.
  • If you get into an accident, your own insurance company pays for your medical treatments and any damage to your car (if you have the appropriate coverages). This is supposed to speed up the claims process since you don’t have to wait for the insurance companies to argue over who was at fault.
  • Despite the no-fault system, significant at-fault accidents can still lead to an increase in your insurance premiums.
  • The ability to sue for pain and suffering is limited in Ontario compared to tort-based systems, but it is still possible under certain circumstances.

Key Differences:

• Claims Process: In Alberta’s at-fault system, you might claim from the at-fault driver’s insurance for damages, while in Ontario’s no-fault system, you claim from your own insurance regardless of fault.
• Legal Recourse: While both provinces allow for legal action after an accident, the no-fault system in Ontario has more restrictions on when and how much you can sue for, especially concerning pain and suffering.

5. Impact of Demerits:

Demerit points are used in both Alberta and Ontario as part of their respective driver licensing systems to keep track of traffic violations and to encourage safe driving. The impact of demerit points on car insurance in these provinces is a nuanced topic. Here’s a comparison:

Alberta:

1. Demerit System:
   • Alberta operates a demerit point system where drivers accumulate points on their license for specific traffic violations.
   • New drivers start with zero points, and points are added for traffic violations. The number of points depends on the severity of the violation.
   • Accumulating too many points can lead to license suspensions.
2. Impact on Insurance:
   • While the demerit points themselves don’t directly impact your insurance rate, the traffic violations associated with them do.
   • Insurance companies in Alberta generally focus on your driving record rather than the number of demerit points you’ve accumulated.
   • Traffic violations can result in increased premiums. Severe or multiple infractions, especially within a short period, can lead to a significant rise in insurance rates.

Ontario:

1. Demerit System:
   • Like Alberta, Ontario has a demerit point system. Points are added for specific traffic offenses, and the number of points varies depending on the violation’s severity.
   • New drivers and fully licensed drivers have different thresholds for how many points lead to interventions, ranging from warning letters to license suspensions.
2. Impact on Insurance:
   • Similar to Alberta, demerit points in Ontario don’t directly affect insurance premiums. Instead, the convictions or violations tied to those points are what insurers look at.
   • A driver with multiple traffic convictions or with severe infractions will likely see an increase in their insurance rates.
   • Insurance companies have their own methods for assessing risk and determining premiums, and they might emphasize certain traffic violations more than others.

Key Takeaways:

• In both Alberta and Ontario, it’s the traffic violations and convictions, rather than the demerit points themselves, that influence car insurance rates.
• Drivers should be aware that while demerit points can fall off your driving record after a certain period, convictions might impact your insurance rates for a longer duration.
• Always consult with your insurance provider about any potential impacts on your premiums after receiving traffic violations.

6. Rate Determinants:

Both Alberta and Ontario, like other jurisdictions, use several factors to determine car insurance rates. However, the emphasis on certain factors may vary between provinces and among individual insurers. Here’s a comparison of the rate determinants in Alberta and Ontario:

Alberta:

1. Driving Record: This includes at-fault accidents, traffic violations, and claims history.
2. Age: Younger drivers, especially those under 25, are often deemed higher risk and therefore might face higher premiums.
3. Gender: Historically, gender has been a factor in rate determination, with young male drivers often facing higher premiums. However, this is becoming less common due to evolving regulations and societal views on gender-based pricing.
4. Location: Urban areas with more traffic congestion, like Calgary or Edmonton, might have higher rates than rural areas.
5. Vehicle Type: The make, model, and year of a car can influence rates. High-performance or luxury vehicles typically cost more to insure.
6. Usage: How the vehicle is used, whether for commuting, business, or pleasure, can impact rates.
7. Coverage Type & Deductibles: Opting for additional coverages like collision or comprehensive and the chosen deductibles will influence the premium.
8. Loyalty and Multi-policy Discounts: Being with the same insurer for several years or bundling multiple insurance policies might qualify drivers for discounts.
9. Driver Training: New drivers who have taken approved driver training courses might receive discounts.

Ontario:

1. Driving Record: Like in Alberta, this includes at-fault accidents, traffic violations, and overall claims history.
2. Age: Younger drivers generally face higher premiums due to their inexperience.
3. Gender: As in Alberta, gender has traditionally played a role, but its significance is decreasing.
4. Location: Areas with high traffic or theft rates, like Toronto, often have higher insurance rates.
5. Vehicle Type: Premiums can vary based on the make, model, and year of the vehicle.
6. Usage: The distance driven annually and the purpose (e.g., commuting vs. pleasure) can affect rates.
7. Coverage Type & Deductibles: Selection of additional coverages and deductible amounts will influence the rate.
8. Insurance History: Lapses in coverage or a history of policy cancellations might impact rates.
9. Driver Training: Approved driver training can lead to discounts for new drivers.
10. Credit Score: Unlike Alberta, where using credit scores for determining insurance rates is prohibited, some insurers in Ontario might consider the credit score, although this practice can be controversial.

Key Differences:

• Credit Score: One of the notable differences is the potential use of credit scores in Ontario, while in Alberta, it’s not a permitted factor for determining car insurance rates.
• The weight given to each determinant can vary among insurers, and while the above lists are comprehensive, they aren’t exhaustive. Other factors might also come into play, depending on individual circumstances and specific insurance providers.

When seeking insurance in either province, it’s beneficial to shop around, get multiple quotes, and consult directly with insurance providers or brokers to understand how these factors impact your individual rate.

7. Optional Coverages:

Both Alberta and Ontario offer a range of optional car insurance coverages. While the basic concepts of these coverages are similar across the two provinces, costs, specific policy terms, and availability might differ. Here’s a comparison of optional car insurance coverages in Alberta and Ontario:

Alberta:

1. Collision or Upset Coverage:
   • Covers damage to your vehicle caused by a collision with another vehicle or object, or by your vehicle rolling over.
2. Comprehensive Coverage:
   • Covers non-collision related damage, such as theft, vandalism, fire, hail, or impact with animals.
3. Specified Perils:
   • Protects your car from specific perils named in your policy, such as theft, fire, or natural disasters. It’s a narrower coverage than comprehensive.
4. All Perils:
   • Combines both collision/upset and comprehensive coverage. It also covers theft by someone who lives in your house or by someone you’ve hired to drive, service, or repair your vehicle.
5. Loss of Use:
   • Provides a rental car or alternate transportation means while your vehicle is being repaired due to a covered loss.
6. Limited Waiver of Depreciation:
   • If your new vehicle is written off in an accident, this coverage ensures that you receive the full original purchase price rather than the depreciated value.
7. Family Protection Endorsement (SEF 44):
   • Extends your coverage if you’re involved in an accident with an uninsured or underinsured motorist.

Ontario:

1. Collision or Upset Coverage:
   • Similar to Alberta, this covers damage to your car resulting from a collision with another object, including another vehicle, or from a roll-over.
2. Comprehensive Coverage:
   • Covers damages to your car caused by events other than collisions, such as theft, vandalism, or natural disasters.
3. Specified Perils:
   • Protects against certain named perils like fire or theft, but not all potential hazards.
4. All Perils:
   • A combination of both collision/upset and comprehensive coverage, providing broad protection.
5. Loss of Use:
   • Covers the cost of alternative transportation (e.g., rental car) while your vehicle is being repaired after a covered loss.
6. Limited Waiver of Depreciation:
   • For new vehicles, if your car is a total loss within a certain time from purchase, you get reimbursed the full purchase price rather than the depreciated value.
7. Family Protection Endorsement (OPCF 44R):
   • Similar to Alberta’s SEF 44, this covers the difference between the policy limits and the amount awarded if you’re in an accident with an underinsured motorist.

Key Similarities:

• Both provinces offer very similar optional coverages, allowing drivers to tailor their insurance policies based on their specific needs and concerns.

Key Differences:

• The cost and specific terms of these optional coverages can vary between provinces and among individual insurers.
• Naming conventions and specific policy endorsements might differ, even if the core coverage is the same.

It’s essential to consult with an insurance professional in the respective province to understand the nuances and select the best coverages for your needs.

Average Car Insurance in Alberta

Here are some examples of the average cost of auto insurance in Alberta per year and per month for 10 major cities, based on a sample driver profile:

1. Calgary

• Average annual cost: $1,216
• Average monthly cost: $101
• Driver profile: 35-year-old male, clean driving record, driving a 2016 Honda Civic

2. Edmonton

• Average annual cost: $1,217
• Average monthly cost: $101
• Driver profile: 30-year-old female, clean driving record, driving a 2017 Toyota Corolla

3. Red Deer

• Average annual cost: $1,129
• Average monthly cost: $94
• Driver profile: 40-year-old male, clean driving record, driving a 2018 Ford Escape

4. Lethbridge

• Average annual cost: $1,093
• Average monthly cost: $91
• Driver profile: 25-year-old female, one at-fault accident, driving a 2015 Chevrolet Malibu

5. Medicine Hat

• Average annual cost: $1,056
• Average monthly cost: $88
• Driver profile: 45-year-old male, clean driving record, driving a 2019 Kia Sportage

6. Fort McMurray

• Average annual cost: $1,506
• Average monthly cost: $126
• Driver profile: 35-year-old male, one speeding ticket, driving a 2014 Ford F-150

7. Grande Prairie

• Average annual cost: $1,327
• Average monthly cost: $111
• Driver profile: 40-year-old female, one at-fault accident, driving a 2016 Mazda CX-5

8. Airdrie

• Average annual cost: $1,141
• Average monthly cost: $95
• Driver profile: 30-year-old male, clean driving record, driving a 2018 Volkswagen Golf

9. Spruce Grove

• Average annual cost: $1,172
• Average monthly cost: $98
• Driver profile: 35-year-old female, clean driving record, driving a 2017 Hyundai Santa Fe

10. Lloydminster

• Average annual cost: $1,245
• Average monthly cost: $104
• Driver profile: 40-year-old male, one at-fault accident, driving a 2013 Dodge Grand Caravan

Average Car Insurance Ontario

Here are some examples of the average cost of auto insurance in Ontario per year and per month for 10 major cities, based on a sample driver profile:

1. Toronto

• Average annual cost: $1,832
• Average monthly cost: $153
• Driver profile: 35-year-old male, clean driving record, driving a 2016 Honda Civic

2. Ottawa

• Average annual cost: $1,219
• Average monthly cost: $102
• Driver profile: 30-year-old female, clean driving record, driving a 2017 Toyota Corolla

3. Mississauga

• Average annual cost: $2,086
• Average monthly cost: $174
• Driver profile: 40-year-old male, clean driving record, driving a 2018 Ford Escape

4. Brampton

• Average annual cost: $2,266
• Average monthly cost: $189
• Driver profile: 25-year-old female, one at-fault accident, driving a 2015 Chevrolet Malibu

5. Hamilton

• Average annual cost: $1,337
• Average monthly cost: $111
• Driver profile: 45-year-old male, clean driving record, driving a 2019 Kia Sportage

6. London

• Average annual cost: $1,201
• Average monthly cost: $100
• Driver profile: 35-year-old male, one speeding ticket, driving a 2014 Ford F-150

7. Kitchener

• Average annual cost: $1,177
• Average monthly cost: $98
• Driver profile: 40-year-old female, one at-fault accident, driving a 2016 Mazda CX-5

8. Windsor

• Average annual cost: $1,306
• Average monthly cost: $109
• Driver profile: 30-year-old male, clean driving record, driving a 2018 Volkswagen Golf

9. Markham

• Average annual cost: $1,681
• Average monthly cost: $140
• Driver profile: 35-year-old female, clean driving record, driving a 2017 Hyundai Santa Fe

10. Vaughan

• Average annual cost: $1,855
• Average monthly cost: $155
• Driver profile: 40-year-old male, one at-fault accident, driving a 2013 Dodge Grand Caravan

Car insurance Alberta VS Ontario by age

Important Points:

• Younger drivers, especially those under 25, typically face the highest rates due to their inexperience and perceived higher risk.
• As drivers age and hopefully accumulate years of safe driving, their premiums generally decrease.
• Other factors such as driving record, type of vehicle, and location within each province can influence rates significantly. For example, urban areas with more traffic typically have higher rates than rural areas.
• These are general estimates and can vary based on the insurance provider and any changes in the regulatory environment. Always consult with multiple insurance providers to get the most accurate quotes for your situation.