Collision Frequency, Claim Severity and Your Car Insurance Costs: What Alberta Drivers Should Know

Collision frequency is how often collision claims happen. Claim severity is how much each one costs. Collision frequency in Alberta has gone down about 7.4% since 2021, while the average cost of a collision claim has gone up about 46.9%. This means “fewer but more expensive claims.” Insurance costs follow claims costs. Preventing collisions helps, but this doesn’t promise any quick premium drop.

What Do Frequency and Severity Mean?

Think of pizza. Frequency is how many pizzas get ordered. Severity is how much each pizza costs. You can order fewer pizzas and still spend more if the price of each one jumps.

Car insurance works the same way. We have to look at both the numbers because both shape what insurers pay out.

What Is Happening on Alberta Roads?

AIRB’s Market & Trends 2026 report shows:

• Fewer claims. Collision frequency is down about 7.4% since 2021.
• Bigger bills. Average collision claim cost is up about 46.9% since 2021.

Why Do Claims Cost More?

The newer safety features may reduce collisions, but they also make repairs more complex and costly. The cost of repairing vehicles is a major factor putting upward pressure on insurance premiums.

How Does This Reach My Premium?

Insurers use premiums to pay claims. AIRB reports that in 2025, insurers paid about 84 cents in claims for every dollar of premium earned. When claims cost more, there’s pressure on rates.

How Can Drivers Help Prevent Collisions?

Fewer collisions mean fewer claims, which is good for everyone on the road. It’s advised to:

• Slow down. Posted limits assume ideal conditions.
• Leave space. On slick roads, leave at least three times your normal following distance.
• Stay focused. Put the phone away. Distracted driving carries a $390 fine and 3 demerit points.

Prevention protects people first. It may help keep claims cost in check over time, but your own premium depends on your insurer, vehicle, coverage and driving record.

How Do Claims Look in My Area?

Numbers can differ from one area to the next. Check yours with AIRB’s Premiums and Claims by postal code tool. Just enter your postal code.

Summary

Fewer claims, bigger bills. Knowing that makes your insurance bill less mysterious. Learn more compare rates at airbfordrivers.ca.

Frequently Asked Questions

What is collision frequency? It’s how often collision claims happen. It may be measured as claims per 1,000 vehicles.

What is claim severity? It’s the average cost of each claim.

Are there fewer collision claims in Alberta? According to AIRB, collision frequency has declined about 7.4% since 2021.

How much has the average collision claim cost gone up? According to AIRB, about 46.9% since 2021.

How much does an average collision claim cost in Alberta? In 2025, the average is of about $9,526 for non-electric vehicles, $12,005 for hybrids and $15,353 for electric vehicles.

Why do collision claims cost more now? The newer safety features can make repairs more complex and costly and the cost of repairing vehicles puts upward pressure on premiums.

Will preventing collisions lower my premium? Your premium depends on your insurer, vehicle, coverage choices and driving history. Safer driving helps people first and may help claims costs over time.

Where can I check premiums and claims for my postal code? Use AIRB’s Premiums and Claims by postal code tool at airbfilings-app.alberta.ca. Enter your postal code to see average auto insurance figures for your area.

Does AIRB set my car insurance price? No. Insurers set their rates. AIRB doesn’t provide quotes or sell insurance.