A new report has found that Albertans are paying more than the national average for auto insurance. (Photo: Zimmytws | Dreamstime.com)

By David Opinko

Report: Auto insurance rates in Alberta above national average

Dec 12, 2022 | 3:39 PM

LETHBRIDGE, AB – Drivers in Alberta are paying more for their vehicle insurance than in other provinces.

That is according to a new report from Ernst & Young, which compared how much drivers of different categories paid in each province.

One example in the report involved a 22-year-old man in Edmonton who has been fully licensed for six years, drives a 2008 Honda Civic, and was in a collision in 2019. He is expected to pay $4,376 annually for insurance, which is higher than the national median rate of $3,009.

Another shows a 30-year-old woman from Calgary who has been fully licensed for 14 years, drives a 2019 Ford F-350, and was in a collision in 2021. She is expected to pay $5,042 annually for insurance, surpassing the national median rate of $2,892.

In both of the above examples, the Albertan driver paid the highest rate out of those in 30 cities across Canada.

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

Alberta NDP Finance Critic Shannon Phillips, also the MLA for Lethbridge-West, says Albertans are getting “gouged” as they struggle to keep their car on the road and food on the table.

A media release from the NDP states that after the UCP lifted the auto insurance rate cap that was implemented by the NDP, premiums increased by as much as 30 percent for some drivers, even for those who drove less than they normally would during the COVID-19 pandemic.

“They’re paying thousands of dollars more per year than other provinces for the same level of insurance. This is highway robbery, but rather than addressing it, the UCP is allowing big insurance companies to charge as much as they want,” says Phillips.

A statement from the Alberta Treasury Board & Finance (TBF), however, claims that the higher auto insurance rates in the province are the NDP’s fault.

“The NDP rate cap hurt Albertans, Alberta businesses and insurers. When the NDP government brought in a rate cap of 5% in 2018, premiums went up by 5%,” reads the statement from TBF.

According to the provincial government, annual auto insurance premiums have increased by 2.4% as of November 2022.

The statement from TBF continues, “In addition to increased premiums, the NDP rate cap caused many drivers to pay a full year’s premium up-front, rather than monthly, and many were denied collision and comprehensive coverage.”

The full report from Ernst & Young can be accessed on the ICBC website.

READ MORE: Lethbridge News Now

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.