Purchasing your car involves a one-time investment, whether you finance it through a loan or divert your investments. However, some expenses, such as car maintenance and insurance, tend to be recurring. Besides, insuring cars in Alberta involves higher premiums than most other provinces in Canada.
Considering the cost factor in this equation, it pays to choose easy-to-insure models. Top insurance brokers can help you find affordable policies in Alberta, Canada. Being smart with your choice of vehicle can
keep the premiums manageable over the years.
In this article, we have discussed the cheapest cars to insure in Alberta. With luxury and high-end vehicles dominating the streets of Calgary, Edmonton, and other cities, it’s wise to be choosy with your model.
How Does the Model of Your Car Determine Insurance Rates?
Car insurers consider a wide range of parameters while calculating the premium. This includes your demographics, driving experience, driving record, age, and type of vehicle. Based on these factors in their equation, insurers determine your risk profile. Accordingly, they fix the premiums that you need to shell out.
Among these factors, the nature and value of your car go a long way in determining the premiums. Expensive models and luxury cars involve high premiums since they need more extensive coverage. On the contrary, vehicles that are not too susceptible to theft involve lower premiums. Now that you are looking for the cheapest cars to insure in Alberta, look out for cars having:
- High safety ratings
- Low record of theft
- Reasonable repair costs
- Easily available components
- Decent resale value
Evidently, the make and model of the car largely define its risk profile. In case the model you choose has a high claim rate due to thefts and accidents, be prepared to fork out higher premiums. The same applies if you choose a model involving high repair costs and poor safety ratings.
For instance, if your car has a poor safety rating, the passengers and drivers are more susceptible to injuries following an accident. This can lead to expensive hospital bills and higher personal injury claims. Naturally, insurers would raise premiums for these high-risk vehicles.
Again, cars having larger engines and four-wheel drive systems invite high insurance costs.
What are the Cheapest Cars to Insure in Alberta?
In Canada, the national average insurance cost is between $1,600 and $1,800. Considering this average, we have recommended some of the cheapest vehicles to insure in the province of Alberta.
- Subaru Outback (Annual insurance cost $1,336)
- Subaru Forester (Annual insurance cost $1,347)
- Honda CR-V (Annual insurance cost $1,359)
- Jeep Wrangler (Annual insurance cost $1,406)
- Hyundai Tucson (Annual insurance cost $1,406)
- Mazda CX-5 (Annual insurance cost $1,412)
- Ford Escape (Annual insurance cost $1,427)
- Honda Pilot (Annual insurance cost $1,442)
- Chevrolet Equinox (Annual insurance cost $1,459)
- Ford F-150 (Annual insurance cost $1,465)
Honda CR-V, Subaru Forester, and Subaru Outlook are some of the safest vehicles plying Canadian streets, as per IIHS. Naturally, purchasing these cars involve shelling out lower premiums each year.
In case you decide to settle with the Subaru cars on our list, you would be paying around $400 lesser than the national average each year. However, if your driving record doesn’t look too impressive or you appear to be a high-risk driver, your premiums would be higher.
Therefore, the list of cheapest cars to insure in Alberta in 2023 also depends on your credibility as a driver. Completing a defensive driving course or using winter tires can also help you reduce your premiums.
How Does Your Car Trim Level Determine Insurance Rates?
Certain trims from some manufacturers come integrated with more sophisticated technologies. While sophistication itself raises the value of the car, some technologies are more susceptible to repairs. This increases the cost of insuring your vehicle.
Again, if you settle with a car with higher engine power, insurers might feel that you are more likely to speed. Even if you uphold sound driving habits, insurers will increase your premiums, fearing an accident. So, even responsible drivers sometimes end up paying high premiums in Alberta.
Usually, carmakers bundle upgrades into different trim levels. So, the insurance premiums keep increasing when you move on from a lower trim to a higher one.
Cars to Avoid to Keep Insurance Affordable!
Car enthusiasts often get carried away with fancy features and high-end models. In the end, they repent paying higher premiums while covering their vehicles. So, when you hunt for the cheapest cars to insure in Alberta in 2023, try and avoid purchasing certain types of vehicles. These include:
1. Cars Susceptible to Theft
Don’t go for cars that are likely to attract jackers and thieves. In case your car gets stolen, you can get compensation under your comprehensive policy to recover the loss. However, purchasing such a car in the first place would involve a higher premium.
2. Sports Cars
The insurance rates for sports cars are among the highest in Canada. This is not solely due to their speed. Young drivers habitually tend to drive sports cars. They are more susceptible to accidents. As a result, purchasing a sports car would shoot your premiums up.
3. Luxury Cars
Luxury cars and high-end models are expensive to cover. These vehicles are luxurious, and replacing them involves compensating a lot more than traditional cars. In case your car gets totaled, your insurers would sustain a greater loss. Therefore, they demand higher premiums for covering luxury cars.
4. Electric Cars
Insuring an electric car can be expensive. Although these vehicles are eco-friendly, they come with higher price tags. Besides, repairing electric cars involves higher costs. The battery of an EV itself costs thousands of dollars. However, if you decide to go with an EV, make sure that the battery comes under at least eight years of warranty.
With this list of the cheapest cars to insure in Alberta, you can make a strategic decision to keep your premiums low. However, insuring your car at an affordable rate can be a challenge in this province. So, reach out to one of the reputed insurance brokers like Surex.
Professional insurance advisors can help you narrow down your options and provide you with custom quotes from multiple insurers. Working with these insurance brokers, you can find affordable policies with adequate coverage for your new car in Alberta.