Auto Insurance Alberta - Car Insurance 101.

Auto insurance refers to the type of property insurance that involves the protection and the safeguarding of policyholder finances against financial losses caused by automobile damage, loss, or theft. The basics of auto insurance in Alberta involves a mandatory insurance of all vehicles. In Alberta, you need to secure a public liability insurance policy before you can register your automobile. It is illegal to drive uninsured and unregistered automobiles in Alberta.

Like the other provinces in Canada, Alberta also offers a no-fault insurance to victims of vehicular accidents. A no-fault insurance is a type of insurance contract that allows the policyholder to make reimbursements of financial benefits without proof of fault. Both parties involved in the vehicular accident are required to pay for the car damages and injury treatment via their insurances in regardless of who is at fault. The inclusion of a no-fault insurance in auto insurance policies caused the expensiveness of auto insurance policies in Alberta.

The auto insurance business in Alberta is regulated by the Automobile Insurance Rate Board and the Office of the Superintendent of Insurance. They regulate premium levels, reviews rate plans, evaluate third party liabilities, and monitor additional coverage.

The three basic types of auto insurance in Alberta:

* Liability insurance

Liability insurance covers the cost of automobile reparation or replacement and the cost of injury treatment or therapy. The difference between liability insurance and no-fault insurance is that the former will only grant reimbursements if the policyholder is the one at fault during the vehicular accident.

* Collision insurance

Collision insurance, as the name suggests, covers automobile reparation or replacement cost if the policyholder's automobile gets involve in a vehicle collision.

* Comprehensive insurance

The comprehensive insurance type of auto insurance covers the reparation or replacement fees for the policyholder's automobile that was damaged or lost due to factors other than vehicular accidents. These factors include fire, explosions, theft, calamities, or vandalism.