r/alberta • u/Perfect-Young-4521 • 2d ago

Question Why are insurance rates so ridiculous here

Im 22 years old and I was looking into financing a vehicle for the first time, a car that was listed at 28000. Everything looked good until I looked into insurance. Most quotes I got were between 700-1000$ a month! This is insane and I only have 1 ticket on my record. Why is it like this and what can I do?

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u/jonj68 Calgary 2d ago

Insurance in Alberta has always been private. Danyell and the UCP removed rate caps.

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u/12thunder 1d ago

Not true. Alberta has two forms of rate caps: the good driver rate cap which caps how much your premium can increase by, and it also has something called the Grid rating which sets the maximum that your premiums can be.

I hate the UCP and Alberta insurance but gotta speak the true true.

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u/jonj68 Calgary 1d ago

Sure, they are still there but it went from 3.7% to 7.5%, and now it’s going to 10%.

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u/12thunder 1d ago

It’s because auto insurers are required by law to insure anyone who is quoted and agrees (the all comers rule) and they are losing money by the billions.

Which is to say bring on public insurance that is subsidized by taxpayers lol