If you insure a car in Alberta, your renewal notice probably looks different this fall. Policies that start on or after January 1, 2027 fall under Alberta's new Care-First system, and renewal notices priced under it started going out on November 1, 2026.
For many Calgary households, the renewal is the moment to ask a harder question: what about the second car? The one that sits in the driveway in Saddle Ridge or the garage in Mahogany most of the week, gets driven twice a month and costs money every month. This guide explains what Care-First changes, how to read what your second car really costs you, and how to decide whether to keep it, cut its coverage or sell it.
What Care-First Changes
Care-First is mainly about injury coverage. According to the Government of Alberta:
- People injured in a collision get treatment and benefits through their own insurer, without needing to sue.
- Medical and rehabilitation coverage rises from $50,000 over two years to unlimited for eligible expenses over your lifetime.
- Income replacement rises to a maximum of 90% of net income, payable until age 65.
- Lawsuits are allowed only in very limited circumstances.
- A rate cap applies: insurers can't raise average rates by more than 5%, and average drivers' premiums are capped at a 10% increase at renewal.
Fault still matters. At-fault collisions and convictions stay on your record and still affect your premium. Vehicle damage claims when you're not at fault have gone through your own insurer since January 1, 2022, under a system called direct compensation for property damage. You can read the full details on the government's Alberta automobile insurance reform page.
Will Care-First Make Your Second Car Cheaper?
Possibly. Alberta's insurance rate board projected an average saving of about $297 per private passenger vehicle, or 13.7%, based on insurers' filed rates. But the board stresses that these are averages, not promises. Your actual renewal depends on your driving record, where you live, the vehicle and the coverage you choose.
Even if the premium drops, the bigger question is whether the car is worth the money it costs you each year. A cheaper premium on a car you barely use is still money spent on a car you barely use.
Read Your Renewal Car by Car
Most Calgary households insure both cars on one policy, so the cost of the second car can hide in the total. Look for the premium listed for each vehicle, and check which coverages it carries:
| Coverage | Required? | What it pays for |
|---|---|---|
| Third-party liability | Yes | Damage or injury you cause to others |
| Accident benefits | Yes | Treatment and income support for injuries, expanded under Care-First |
| Collision | No | Damage to your own car when you're at fault |
| Comprehensive or all perils | No | Hail, theft, fire, vandalism and animal strikes |
Collision and comprehensive coverage on a car worth a few thousand dollars can cost a large share of the car's value every year. That's often where the savings are hiding.
Do the Real Math
Insurance is only part of what a second car costs. Add up a year of:
- Insurance premium for that vehicle
- Registration renewal
- Repairs and maintenance, including winter tires, batteries and brakes
- Parking, whether it's a condo stall, a permit or a spot you could rent out
- Depreciation, since an old car loses value every year it sits
Then compare the total with how often the car is actually used. For example, if a second car costs you $3,000 a year all in and gets driven twice a month, each trip costs about $125. A taxi, a rideshare or a borrowed car is often cheaper.
Your Options at Renewal
1. Keep it fully insured
This makes sense if two people in the house commute at the same time, the car is reliable and the coverage is affordable.
2. Reduce its coverage
On an older car, dropping collision coverage is common, and some owners drop comprehensive too. Before you change anything, ask your broker how it affects your policy. The government warns that adjusting your coverage, adding a driver or changing vehicles can cost you the rate cap protection on your renewal.
3. Park it with reduced coverage
Some insurers offer reduced coverage for a vehicle that's stored and not driven, such as comprehensive only. It protects against hail and theft while the car sits, but the car can't be driven on the road with that coverage. It's a reasonable short-term step if you're deciding what to do.
4. Sell it
If the car is old, needs repairs or hardly gets used, selling ends every one of those costs at once.
Signs It's Time to Sell the Second Car
- It's driven less than once a week.
- Its yearly cost is more than it's worth.
- It needs a repair you keep putting off.
- It has hail damage you never fixed.
- It sits outside through Calgary winters and chinook freeze-thaw cycles.
- A teen who used to drive it has moved out.
- You're only keeping it "just in case."
Sell First, Then Cancel
The order matters. Keep the car insured until it's sold and gone, so you're covered if anything happens while it's still yours. Once it's sold:
- Remove your licence plate before the car leaves. In Alberta the plate belongs to you, not the car.
- Keep your signed bill of sale.
- Call your insurer to remove the vehicle, and ask about any refund for the unused part of the term.
- Transfer the plate to another vehicle or cancel the registration at a registry agent.
Our guide on transferring licence plates when you sell a car in Alberta walks through the plate step in detail.
What Your Second Car Is Worth
An old second car is often worth more than people expect, even if it doesn't run well. Its value depends on its weight in steel, its catalytic converter and any parts that are in demand. A complete car is worth more than one with parts missing, and trucks and SUVs usually earn more than small cars.
Junk A Car Calgary buys second cars in any condition, from the minivan nobody drives anymore to the sedan with a check engine light. You get a firm offer, free towing anywhere in Calgary and payment on the spot by cash or Interac e-Transfer. When the numbers point to selling, you can get cash for cars in Calgary in a single call.
Frequently Asked Questions
Does Care-First lower the premium on every car?
Not necessarily. The projected savings are averages. Each vehicle is priced on its own factors, so check the amount listed for each car on your renewal.
Can I keep a car registered without insurance?
You need valid insurance to drive a vehicle on Alberta roads. If you stop insuring the car, it can't be driven, so plan to sell it, store it properly or move to coverage designed for a parked vehicle.
Will removing a car from my policy affect my rate?
It can. Changes to your vehicles or coverage can affect the rate cap protection on your renewal. Ask your broker before you make the change.
Should I sell before or after my renewal date?
Selling before renewal avoids paying for another term. If your renewal has already started, ask your insurer how a mid-term cancellation and refund would work.
Turn the Second Car Into Cash
Your renewal is the easiest time to make this call. If the second car costs more than it gives you, send us the year, make, model and condition. You'll get a firm offer, and we can often pick it up the same day.