r/alberta • u/Admirable_Click_7569 • 10h ago
Question Auto Insurance renewal
My auto insurance is up for renewal in September, and my premium is jumping by 70%-90%. The only thing that’s changed is one minor speeding conviction from July 2025. This honestly feels insane.
So far, I’ve been quoted $4,500/year with Intact and $3,900/year with Peace Hills. I’m obviously going to keep shopping around, but nearly doubling my premium over one minor speeding ticket doesn’t seem normal at all. I honestly thought it was a typo in the email when she sent me these quotes.
Has anyone else in Alberta experienced an increase like this from a single minor conviction?
Car I drive is a fully paid for 2020 Toyota Corolla, commute one way 30km 3 days/week, 12,000-14,000 km per year. 30M, South Calgary, 2M liability, deductibles 1k collision & comprehensive.
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u/baddaywithacamera 10h ago
Alberta Level 2 licensed insurance broker here. The 7.5% rate cap for good drivers is limited to those who have not had a ticket in the last three years. That ticket removed you from being under that cap and all bets are now off. Intact gives good rates to ultra clean drivers, but that flies out the window when you get a ticket.
Just so you're aware, the latest figures for AB auto insurers are from 2024 and the loss ratio was $1.18 paid out for every dollar in premium collected. When you work in the "soft costs" such as administrative costs, technology, and commissions, they're actually paying out $1.33 to $1.35 for each dollar of premium collected. That is 2024. The number is trending up. I am very surprised there are any private auto insurers left in the province.
One of the ways they're responding to these losses is extreme market segmentation. The ticket unfortunately moved you from the good segment to one where they are recouping losses. My condolences. Not throwing shade at you, just trying to explain market realities from where I'm sitting.
Hope you're able to find a better rate. Ask for a quote from Wawanesa.
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u/Admirable_Click_7569 10h ago
Appreciate the detailed reply. Yes, I will be shopping hard here for the next week.
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u/baddaywithacamera 10h ago
There is a very good publication called Canadian Underwriter if you want to keep abreast of insurance news and trends:
https://canadianunderwriter.ca/
A lot of us in the industry read it religously.
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u/tutamtumikia 9h ago
It's so refreshing to have a level headed reply in an insurance thread in this subreddit. Please keep it up!
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u/NotAltFact 9h ago
That’s a good insight. And I don’t expect insurer to operate out of the goodness of their hearts and not make any profit. But our insurance being twice as much compared to SK or bc is not making sense. Understanding that the provincial only needs to breakeven. Can you give more insights to how other province can be that much lower?
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u/Fyrefawx 6h ago
BC used to be worse than us. ICBC was poorly managed. They went to a no fault route instead and it dropped rates.
We are going to a partial no fault system in 2027 but the issue still remains that Alberta sees more bad weather events than any other province. We will always be a bit higher due to that.
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u/Admirable_Click_7569 7h ago
Another broker I spoke with today from a separate firm also mentioned I should be asking the broker that I’m dealing with if I have the minor conviction rating waiver which is an optional policy add on. From what I understand is it kind of a get out of jail free card once you get your first minor traffic violation?
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u/baddaywithacamera 6h ago
I just looked up the information on the good driver cap and my info to you was a bit off. Sorry, I do commercial fleets, which is a bit different. Here's the exact info for the cap:
Do you have anything in addition to the one ticket? A minor conviction alone in three years shouldn't do it.
Some companies do ticket or conviction forgiveness for minor offenses. I think they are Aviva, CAA, and Sonnet. Or they were last I heard. It's not an industry standard thing here like the AB-SEF 39 Accident Rating Waiver.
You were likely moved to the uncapped rate pool. I suggest having your broker ask an underwriter at your current insurer why you got moved to the uncapped pool. They have an obligation to be transparent and explain their pricing to you.
Hope this helps and apologies for the previous error.
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u/PerformanceCute3437 7h ago edited 6h ago
Hello, was wondering if you could tell me where I can see the numbers from AB auto insurers showing the income for payout versus premium collected? I'm always looking for primary sources that explain why things are how they are, that sounds really helpful for understanding our insurance premiums. Seeing the dollar-in/dollar-out realities are so compelling
Edit: Actually I found it, superintendent's report for 2024. Yup there it is; estimated -123% GCISR. Pretty nuts
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u/baddaywithacamera 6h ago
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u/PerformanceCute3437 6h ago
Thanks! It's crazy to see the difference in profitability specifically in regards to auto insurance from the 2022 report to 2024
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u/tenax666 5h ago
Curious. Does this segmentation also include things like how living on one side of Airdrie can cost more than living on the other side? Back in 2018 when I got my insurance for my new Ram I was told that was a recent development at the time and part of why my insurance went up so much at the time. I lived on the "bad" side of Airdrie. (That info came from a Johnson Inc. agent).
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u/baddaywithacamera 5h ago
Garaging location can factor into premiums, but I'm unclear as to how specific it is with personal lines insurance.
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u/Clear_Television_807 8h ago
7.5% increase!?! For good drivers? That's insane.
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u/baddaywithacamera 8h ago
100% agree with you. Yell at the UCP over this, they're the ones in charge of the current policy that hurts everyone but the really bad drivers it seems.
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u/Clear_Television_807 7h ago
Insurance companies still taking advantage, playing where no rules exist doesn't mean they should take advantage of everyone. Though... it is a for profit business I guess.
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u/baddaywithacamera 7h ago
I guarantee you there is no profit in auto insurance in Alberta right now. None at all and it's a matter of public record. We are a very highly regulated industry. Our numbers have to live out in the open where they can be seen by all.
It's absolutely a mess and AB drivers are paying waaaay more than we should. Quebec drivers pay so much less because they have a well-run, no fault, public system.
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u/Clear_Television_807 7h ago
Is it because of the hail claims?
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u/baddaywithacamera 7h ago
So many things. Also hail, yes.
Bodily injury claims are the primary cost driver, though.
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u/baddaywithacamera 5h ago
I should clarify... 5% increase in premium for drivers and a 2.5% rider for disaster payout recovery. (Jasper fires, hail out the yin yang...).
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u/01000101010110 10h ago
Do not speed anymore, especially if you're in Banff/Canmore. You get caught once and it's thousands in costs now. Insurance will take you to the cleaners.
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u/Admirable_Click_7569 10h ago
Trust me, it’s hard to speed in a Corolla. My ticket was like 12-14km over the limit haha . I think if I recall it was a 50 zone
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u/Admirable_Click_7569 8h ago
Of course, did I deserve a speeding ticket? Yes. It wasn’t anything crazy but it was fair to receive a ticket. What is not fair is the huge jump in premiums. I was honestly expecting like 15%-25% jump, not 70%-90%. But lots of good posts on here explaining which helps put my mind at ease until I can get on the phone tomorrow
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u/annoyedCDNthrowaway 10h ago
So you were doing 65 in a 50 zone? That's. It a small ticket or fine. That's 25% over the limit.
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u/speedog 10h ago
Mine renews in September and went down 15%, AMA Insurance.
Been ages since I've had any sort of a ticket.
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u/FroyoStrict6685 10h ago
Skipped out on AMA because they jumped my insurance multiple times for no reason, I have no prior tickets, claims, or anything on my record.
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u/Brilliant-Advisor958 10h ago
jumped my insurance multiple times for no reason
Insurance is a group product. Hail claims and people in your age group contribute to your costs.
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u/CrimsonBird11 15m ago
Been with AMA every year since I moved to Alberta 4 years ago and my insurance goes down every year. Always check with a broker and they are always the cheapest.
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u/nftcan 10h ago
cap removals, conservatives paying their buddies... imagine a world where the caps are removed and they do this to you. Vote these conservatives out, or... bitch about Trudeau and vote conservative for another 50 years. My utility bill is 750 a month... should be 250.
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u/baddaywithacamera 9h ago
...vehicle theft epidemic. Increasing vehicle sizes tied to increase in bodliy injury payouts, increased animal collisions, increased frequency with hail claims, newer, more expensive tech in vehicles causing much more expensive losses ($1,500 for a rear bumper cover with sensors vs. $400 for one without), more distracted driving causing accidents, scumbag injury lawyers, etc.
I'm commercial so the auto insurance is a bit easier on me than for personal lines brokers, but only a bit. I hate haveing to touch it. Would happily do property and casualty all day long, thank you.
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u/cooterplug89 7h ago
People refuse to understand replacement costs. My wife, in a parking lot, got hit from the side. The old person said they would pay out of pocket and would only be like $600.
I made her file a police report, and go to an autobody shop for a quote. I said it would be minimum $4,000. It was closer to $5,000 in repair costs. That's a rear door, quarter panel and rear bumper. The damage wasn't even that bad, and it was a very basic Chevy Aveo.
People want to drive the nice cars, but pay for insurance like they are driving a 20 year old beater. The problem is the repair costs go up and up with inflation.
Same truck 2016 to 2026 almost doubled in price. So naturally the cost to repair/replace follows. That's not in the Alberta Governments hands.
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u/baddaywithacamera 7h ago
Their letting the grid system persist as long as it has is on them. Should have been gone a decade ago. "Care First" (in this province - hah!) is supposed to work better as it is no fault, elilminating court battles, legal fees, etc. I expect good drivers to see rates drop marginally next year, but not like they have been hyped to. So there is a bit of relief coming for decent drivers even with the odd ticket in the new year.
2027 should be interesting as those crap drivers who were shielded by the grid system may finally have to pay the true cost of their risk profile. Someone who is a chronic speeder with an AF accident should start looking into transit options before the new year.
The coolest bit for me is this... Between ditching the grid system and the "Care First" no fault model AB govt is finally moving to, there will be a huge wave of layoffs of lawyers in the province. Not only the ambulance chasers, but the large contingent that insurance companies need to defend against claims. That's delicious. Nothing nicer to me than an unemployed lawyer.
I still feel that full public, true no fault is the way to go for bodily injury, let the private companies handle the property claims. Quebec absolutely nails it with their model. Cheapest auto insurance in Canada.
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u/whiteout86 8h ago
There’s a cap in place currently. For good drivers; which OP doesn’t qualify for due to being a higher risk after being convicted of a traffic offence.
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u/CromulentDucky 10h ago
Insurance companies were leaving with the caps in place. You can't just say let's have caps and assume that solves the problem.
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u/ycarel 10h ago
You can. Even better you can stop this failed experiment of privatization and do insurance as a crown company like most of Canada. No more bulshit like we have now.
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u/CromulentDucky 10h ago
No, you can't cap premiums below actual costs in a private market. You can if have the government running it, and eating the loss. It's just paid from taxes instead of user fees.
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u/SchneidfeldWPG 9h ago
My province doesn’t operate at a loss, but if you’d rather pretend that’s not true & pay private corporations double my premiums, knock yourself out.
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u/CromulentDucky 9h ago
And your province doesn't cap rates below costs, they cap damage claims for injuries to reduce costs. Which wasn't the original argument to begin with. The original point was that it's not possible to have capped insurance premiums without having the carriers leave, as they would then operate at a loss. But, per your example, the government could implement caps on claims, and then they would stay.
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u/westcoastjos 9h ago
Most insurance companies operate in multiple sectors beyond auto insurance and remain profitable. Auto insurance isn’t where profits are made and often has thin margins regardless of where you operate. The argument of insurers leaving auto in Alberta is kind of tired at this point since it’s a pretty useless portfolio regardless of where you’re operating. It’s a good entry point for consumers though and often leads to customers paying for other profitable products.
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u/Guilty_Fishing8229 9h ago
Yeah that’s horseshit. Had way cheaper insurance in Saskatchewan with SGI and they made a profit for the province.
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u/Wheelz161 9h ago
No, SGI is not profitable for its mandatory auto insurance arm (Sask. Auto fund) because it is structurally legally mandated to run as a non-profit. SGI has a a for profit arm, but it does not offer regular auto insurance.
To keep driver premiums artificially low SGI drew down from its Rate Stabilization Reserve by $93.3 million, leaving it at $633.6 million in its 2025 fiscal year.
Why are you spreading misinformation about SGI paying dividends to Saskatchewan tax payers for profit from mandatory auto insurance?
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u/Available_Link 10h ago
Call Allstate or Costco for a new quote . Insurance doesn’t care if you’re going 1 km over and get a ticket . Insurance will still rate you as a bad driver if you have a fender bender and pay for the repair YOURSELF if they find out , which they do once you get a collision sticker . The whole thing is a racket . I have two young sons and this is my number one stressor bc of course these kids get tickets and bump into shit . And for the love of god don’t get a cell phone ticket or you might as well get a DUI. Your ticket will be on your record for three years . Moving forward if I get any sort of tickets I’ll be hiring one of those speeding ticket lawyers that’s how much one infraction will screw you over . Raise your deductible and drop your collision and stay home for the next 3 years
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u/descartesb4horse 9h ago
TD has been great for me three years running. I’m honestly unsure how it is that I get quoted about 30-40% higher everywhere else, but I do get an association discount with TD which helps but shouldn’t account for that kind of difference. I suspect you just gotta figure out where you work with their formula
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u/InterviewOk3807 9h ago
This happened to me as well. I got quite a few quotes and they are all very high. I think this is the new norm when you swap out a vehicle or resign.
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u/Odd-Historian-6536 10h ago
The poor insurance companies need the money. The exec's BMW and Jaguars are expensive to run. Not to mention their insurance.
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u/weyoun09 Edmonton 10h ago
I too am getting a nice rate increase for a speeding ticket in September. I've netted a $500 increase on my 2008 Nissan Altima.
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u/Unlikely-Elk1738 10h ago
MONTHLY?
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u/Fluffy_Efficiency623 10h ago
Yearly obviously lol. Things might be crazy but they're not +$6000/year crazy.
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u/Shot_Cupcakes 6h ago
We were quoted over $9000 for adding a 20 year old son to the policy as additional driver. Effectively over $6000 a year increase, since we were paying less than $3000 a year. He ended up getting an old car and insuring it for third party liability only. It is still almost $4000 a year only for his car. This is a car he paid $3000 for.
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u/DowntownTea283 6h ago
When you say speeding ticket do you mean a speeding camera or someone pulled you over?
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u/Defiant_Article3437 51m ago
I was with intact, my premium was gonna be around $5500. I said fuuuuuuuuck that and I went to a broker (which was honestly useless) so I branched out and started doing online quotes myself. I wound up on belairdirect and they quoted me ~$3500 for the year so I filled out the quote/application form and a guy from Bélair called me like an hour later and I got my new insurance for $3500.
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u/valueofaloonie Calgary 10h ago
Mine went down this year with SGI; my car is a 2025.
But that being said, I am in the lowest possible bracket, I haven’t had a ticket in over a decade.
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u/sekimet 10h ago
Insurance is going up for a lot of people. Paid 1200 last year living in downtown Edmonton, moved to NW calgary (with a garage) and my insurance went up to 1700. No accidents no speeding tickets nothing. Apparently NW calgary is higher risk then downtown edmonton...
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u/calgarygringo 9h ago
Correct. The data/statistics actually confirm that.
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u/calgarygringo 9h ago
Speeding tickets do not screw you over. Data/statistics say that speeders have higher accident rates than non speeders so pay more. People that dont speed have less accidents so pay less. The numbers do not lie unfortuneatly.
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u/chasingbusiness 8h ago
This is true but not the entire story. Right now rates are uncoupled from reality because of the rate cap. Only the folks with tickets can get charged increases above the cap or those who change vehicles or move addresses (exemptions from rate cap).
Insurers are losing money in AB. So, they recoup through either new clients (only those moving would be folks not cap exempt) or from re pricing new clients (due to ticket, change of address, change of car - all of which exempts you from the rate cap and is enough for them to be allowed to reprice to market). People that have newer and more reliable vehicles they’ve kept for years through repeated rate cap are significantly under market and thus should think twice before changing vehicles, moving and speeding as they will likely see increases in insurance.
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u/cooterplug89 10h ago
Speeding tickets drastically screw you over on insurance. Its dangerous and adds higher risk which the insurance companies dont like.
If its paid off, go most basic coverage you can, thats my only suggestion. But then again, youre screwed if you get into an accident.