What Is The Mandatory Car Insurance in Alberta?

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Only buying a new car and driving license is not enough to drive legally in Alberta. In Alberta, a driver must have mandatory car insurance for legal driving.

This article provides a quick guideline about what the mandatory car insurance is in Alberta and what it covers.

What Is Mandatory Car Insurance in Alberta? 

According to Alberta law, to start driving your vehicle, you must have a car insurance coverage of at least $200,000, which is mandatory. Beyond this amount, any insurance coverage you possess is considered optional.

According to the province’s law, to be a car driver, you must fulfill Alberta’s mandatory car insurance criteria.

People often think SEF 44 Alberta to be mandatory insurance coverage. But, it’s an optional coverage rather highly recommended one for the drivers since it is a family protection endorsement.

Let’s get a more clear idea of what the insurance benefits include:

Personal Liability and Property Damage Insurance

Mandatory car insurance provides personal liability and property damage coverage at the very first. Personal liability and property damage often get termed as third-party liability.

Every insurance company must provide this mandatory coverage to all beginner car drivers. There is no option for insurance companies to avoid or deny such liabilities.

New drivers get this coverage when their vehicles get damaged due to another person’s fault or other vehicles. Providing all the new drivers’ third-party liability coverage by the insurance falls under the All-Comers Rule. If any payment issues with previous insurers or any insurance fraud get found, there might be some exceptions to the All-Comers Rule.

Accident Benefits

To drive a car in Alberta, you must have accident benefits coverage from your car insurance policy. Accident benefits coverage covers all the passengers of a car whenever they get injured or die in a car accident. The insurance covers the passengers without considering who is at fault and who is not. 

Accident benefits provide rehabilitation and medical bills, funeral expenses, death benefits, replacement of the victim’s income, and the most important is the coverage for an uninsured motorist. An uninsured motorist coverage means you are covered or protected by the insurance whenever you face an accident with an insured driver.

What are the penalties if you get caught without insurance?

Uninsured driving is strictly prohibited and seen as illegal in Alberta. However, if any driver gets found to have no valid car insurance coverage, they might face the following penalties:

  • For your first-time offence, you might have to pay a fine of a minimum of $2,875 and a maximum of $10,000. In case you fail to pay the fine, you have the option to spend at least 45 days or at most six months in jail. 
  • If you get found with no insurance after five years from the first penalty or offence, your fine will increase from a minimum of $5000 to a maximum of $20,000. Again, if you fail to pay the fine, you will go to jail for a minimum of 60 days and six months.
  • You will not receive any demerit points for your driving offences without valid car insurance. Instead, your insurance rates will significantly get increase.
  • To some extent, the judge possesses the right to suspend your driving license for a certain period or sometimes forever. It means you will lose your right to drive in Alberta again.


The mandatory car insurance in Alberta is a smart and wise decision to have valid car insurance coverage before you start driving. Without insurance coverage, if you face any accident, you must bear all the compensation for bodily and vehicle damages to you and the other party.

Also, you have to face hard penalties when found driving without insurance coverage. So, drive insured and be safe.