The Essential Car Insurance Facts for Calgary

In Calgary, driving isn't always easy. Drivers must brave weather that can change quickly, and heavy rush hour traffic. Regardless, you'll always need car insurance, whether you are daily commuter, weekend adventurer, or an occasional driver.

Average Car Insurance Costs in Calgary and Alberta 

Although Alberta has a private insurance market, the insurance rates themselves are still regulated by the provincial government. There are two agencies in Alberta that oversee car insurance rates: The Automobile Insurance Rate Board and the Office of the Superintendent of Insurance.

In 2004, Alberta implemented a premium grid on auto insurers, settings maximum premium levels for basic coverage. The grid takes into account where you live, the number of years you've been licensed, the number of claims you've had in the last six years, and how many driving convictions you have on your record. But it is still important to shop around because even with the premium grid, auto insurance rates vary wildly within Alberta.

If you are aged 25 or under in Alberta, you are considered young and will pay around $187/month for Alberta car insurance. However, as you get older your premiums will go down. For example, you'll pay around $152/month at ages 31-35, about $122/month at ages 46-50, and around $100/month at ages 56-60.

Auto insurance rates in Alberta are determined by a variety of factors:

Your gender and age

Your driving experience

Type of vehicle you drive

Location and use of your vehicle

Your driving record

The amount of coverage you've selected

How to get the Cheapest Auto Insurance in Alberta

1.Compare rates among various companies and don't feel like you must stick with the insurers your parents used. There are many insurance providers available, and often they use competitive pricing, meaning different providers may offer the same policies at greatly different prices. Talk to a broker (who compares auto insurance rates in Calgary for you) or use online tools to see where you can get the best rate for the coverage that is right for you. As well, reading auto insurance reviews will help you avoid unexpected issues. Search online for opinions using blogs and forums.

2.Sometimes you can get better rates if you bypass the broker or agent and deal with a direct insurer, like Belairdirect or TD Insurance.

3.Use rate tools and calculators. For instance, if your credit card includes rental car protection, you can save 20 per cent by paying with it. You can use a credit card navigator tool to assist you in finding insurance for a rental car compatible with the value add-ons on your credit card. You can also use an insurance price comparison tool to compare insurance premiums.

4.Bundle your car insurance in Calgary with other policies. For example, if you have multiple vehicles and a home to insure, you can bundle them with one insurance company to get a bundle discount. Insurance companies reward their customers for giving them more business.

5.If you got your policy you were a smoker and can prove you have quit smoking since then and have not returned to it for at least one year, they will reduce your insurance premiums. Smokers typically pay double the amount for premiums!

6.Invest in driving a hybrid vehicle. By purchasing a hybrid, you may save on more than just gas! Inquire with your insurance company to see if they offer discounts for hybrid vehicles.Save money hybrid vehicles.

No Flood Coverage Home Insurance In Calgary

The High wood River are rivers waiting to flood you out! Alberta found that out for sure in June of 2013. The entire province will pay for the tragic loss of life and property for a long time. So, then why is there no flood coverage for home insurance in Calgary?

 There Are Over 5 Billion Reasons!

There were tremendous losses to bother personal and public property due to the unprecedented amounts of water that descended on southern Alberta. If you allow Alberta the 3,645,257 people estimated in a 2011 census, the $5 billion overall recovery estimate equals almost $13.7 thousand per citizen. Of course, we are not personally on the hook for costs, and that amount will be divided between provincial, federal and municipal governments along with insurance agencies, it points to the enormous expense involved in cleaning up after a flood.

There is no flood insurance in Alberta simply because only those people who live in flood-prone zones would be likely to purchase it. Hence, there would be a small amount of people among whom to spread the cost of claims. Therefore, the cost of flood insurance would be so high that it would become unaffordable.

How Bad Is It?

Well, Canada is the only G8 country where homeowners simply cannot buy insurance against overland water. A business may be able to find a source of insurance and be willing to pay the price, but no citizen can buy private insurance against flooding.

It is called overland flooding because it refers to the water that enters a residence as a result of swollen streams, lakes, or rivers. Home insurance in Calgary may protect you against sewer backup to burst pipes - but not from overland flooding.

This leaves Alberta's and all Canadians exposed, and there is no relief in the near future. Climate change may or may not be behind the Alberta floods, but flooding is increasing in frequency and severity. There were also floods in Toronto, Quebec, and Manitoba, and so without legislation the Canadian insurance industry is unlikely to take the risk. 

The entire insurance industry is focused on the flooding issue, and the June floods have cost insurance companies $2.25-billion for commercial and governmental claims.

Solution?

Under Canada's Disaster Financial Assistance Arrangements, the provincial and federal governments fill in the gaps in financial recovery. The insurance bureau of Canada (IBC) looks back to design the future, and without a comprehensive analysis of flood plains throughout Canada - and the U.S. for that matter, it has to look to present options. This includes increased deductibles, new products, and engineered payouts. The future does not appear to include flood coverage in home insurance policies for Canadians.

Lane's Insurance is a customer oriented, matter-of-fact insurance brokerage that believes service is still important to people. As proud members of the Independent Insurance Brokers Association of Alberta, Lane's works with numerous carriers to meet your insurance needs while maintaining competitive pricing. The buy private insurance against flooding. 

Home Insurance In Calgary And Alberta to Rise

Nasty weather our way and it is potentially causing home insurance rates in Calgary to rise, and coverage to change. As these storms increase in their intensity and the damage they cause, it is instigating insurance companies to pay billions of dollars more in compensation every year. As is to be expected, these additional costs are being passed on to consumers in the form of higher premiums and deductibles and changes in coverage.

In 2012, 62 per cent of all canadian claims originated in alberta and totaled roughly $730 million in claims. That's a hefty number and insurance companies immediately took note of their losses. Even before the devastating floods of June 2013, Calgarians and Albertans were braced for changes.

Why Rates Are Increasing

• Homes are larger and more expensive to repair - The average sized home in Alberta is now over 1,900 square feet.

• Finished basements are being used as living space - Basements that were once used for storage and occasional entertaining are now being filled with everything from extra bedrooms to home theaters.

• Construction costs are rising - It now costs upwards of $100/sq. ft. to build a home in Calgary, and these costs are expected to go much higher in the future.

Protecting Your Policy

There are some ways you can weather the upcoming rate increases and changes that are expected to come in 2014. Most are simple, and all of them can make a big difference in the premiums you can expect to pay each and every month.

• Install an alarm system to protect your home from intrusions, fire, and CO poisoning

• Increase your deductible

• Research and apply for discounts

• Bundle your home, auto, life, and other insurance policies together with the same insurance provider

• Flood-proof your home if you live in a flood-susceptible area

• Fire-proof your property by removing excess plants and dead organic matter from your property and installing sprinklers

Don't Rely On The Government

Authorities and government agencies across Alberta are taking great steps to repaired mitigate flood damage. They are investing billions to build beams, clear forests, and protect homeowners from catastrophe. However, you shouldn't rely solely on these efforts to protect your home. The more proactive you are in protecting your home the better off you will be in the event of a weather emergency, and the more money you will save in your Calgary home insurance premiums.

Bow Valley Insurance understands that you can't predict the weather, but that you can protect yourself from whatever Mother Nature might throw your way. That is why we have developed a dependable network of insurance agents and companies throughout Alberta who can cover your home more completely than anyone else.