Buying a New Car: Insurance Grace Period in Alberta

Whether you’re looking for your very first vehicle or are thinking about adding another ride to your collection, buying a new car is always an exciting process. There are countless makes and models that drivers can choose from, which can make the process feel overwhelming at times.

While you’re searching for your dream car, you should take a few moments to familiarize yourself with some of the car insurance basics.

As you likely know, car insurance is meant to financially protect drivers from unforeseen events that can occur on and off of the road. If you get into an accident and don’t have valid car insurance, you will receive no third-party financial aid.

One of the typical car insurance questions that our team receives is, “what is the insurance grace period when you buy a new car in Alberta?”.

Continue reading to learn the answer to this question and many more.

Buying a new car insurance grace period Alberta — what is it?

Yes, there is a 14-day grace period for car insurance in Alberta. However, there are several rules that apply to said grace period. For instance, the insurance will only go by what the insured currently has (the lowest possible coverage option). Drivers in Alberta are required to have the mandatory provincial level of liability coverage. Currently, the compulsory level of liability coverage in Alberta is $200,000.

$200,000 may seem like a lot of money, and in most cases, it is. However, regarding car insurance, $200,000 barely scratches the surface.

If you get into a severe car crash that results in death or an injury, $200,000 will most likely not cover all of the related expenses.

That’s why we suggest that drivers in Alberta purchase $1,000,000 to $2,000,000 in liability coverage. Doing this can give you additional confidence behind the wheel and lessen the financial burden if you happen to get into an accident.

Can you buy a vehicle without car insurance in Alberta?

Yes, you can buy a car in Alberta as long as you can afford the vehicle and meet the other requirements.

However, driving your car without insurance is a very different story. As mentioned above, drivers in Alberta are legally required to have sufficient car insurance coverage. This means that if you’re caught driving without valid insurance, you can face serious consequences, including a fine ranging from $2,875 to $10,000 (for your first offence).

The fines and penalties for driving without car insurance increase with each subsequent offence. You can contact your car insurance provider or advisor if you have questions about these consequences.

Bonus — Check out this blog to learn more about buying insurance for a used car.

Are you looking for affordable car insurance coverage in Alberta?

Finding cheap car insurance in Alberta can feel like an uphill battle, regardless of how long you’ve been driving. It’s not uncommon for drivers to spend hours on the phone chatting with providers or comparing potential policies.

What if we told you that you could skip the hassle? It’s true — all you need to do is team up with Surex!

At Surex, insurance is kind of “our thing”. So, when you have questions about getting car insurance in Alberta, we’re always happy to answer.

Whether you’re thinking about changing providers or simply want to include an endorsement in your policy, our team can help. By the way, if you’re looking for ways to save on car insurance, you’re in luck. We can help you save over 25% on car insurance (ask one of our advisors about our bundling options).

Contact us today to receive several insurance quotes for various markets in ten minutes or less!

Do you need to inform your insurance company about your new car?

Yes, you should inform your car insurance provider about your recent purchase right away. This is a crucial step, as it’s the best way to guarantee that you’re covered in the event of an accident in Alberta. Doing this also gives your provider the opportunity to supply you with a car insurance binder.

An insurance binder is a document that acts as a form of temporary proof of insurance.

If you happened to get pulled over in your new vehicle, you could show the authorities your insurance binder. Doing this will prevent the authorities from charging you with driving without valid insurance.

As a reminder, you do not have the ability to transfer your insurance by installing your existing license plates onto your new vehicle.

Speaking of license plates in Alberta…

Registering a car in Alberta

You may be asking yourself questions like — “how long do you have to register a new car in Alberta?”.

When you buy a brand new car in Alberta, you, as the owner, have two options: install your existing plate on the vehicle or purchase a new plate and register the vehicle.

Using your existing plate

Drivers can temporarily use their existing license plate and registration for a maximum of 14 days in Alberta. During this time, you must have a copy of your proof of ownership and proof of insurance on hand.

*This does not apply to commercial vehicles and insurance documents in Alberta*

Buying a new license plate and registration

You can buy a new license plate or registration immediately after buying the vehicle or within the 14-day registration grace period.

To register a car in Alberta, you’ll need the following:

• Proof of ownership
• Proof of insurance
• Identification
• Pay applicable fees

Feel free to click this link if you’d like to learn more about the ins and outs of registering a vehicle in the province of Alberta.

Do you have any questions about the buying a new car insurance grace period in Alberta?

As a final reminder, there is no new car insurance grace period for drivers in the province of Alberta.

Driving a car without insurance is extremely risky, as you won’t receive any financial coverage if you happen to get into an accident (even if you’re technically not at-fault). Additionally, driving without insurance can land you in hot water (legally speaking) as you can face serious penalties and fines.

If you have any unanswered questions about car insurance in Alberta, don’t hesitate to reach out to a Surex insurance advisor at your earliest convenience. We’re always more than happy to answer your car insurance questions.