New Brunswick car insurance

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How car insurance coverage works in New Brunswick

New Brunswick car insurance is mandatory and provided by private insurance companies and brokers. If a high-risk driver can’t access car insurance, they would turn to the Facility Association. The Facility Association is funded by all insurance companies in NB and operates as the insurer of last resort. New Brunswick’s mandatory coverage includes $200,000 in third-party liability insurance, which protects drivers in the event they cause injury or death to a third party. Accident benefits and uninsured automobile coverage are also mandatory. It’s recommended you speak to your private insurer about additional coverage options, such as collision and comprehensive.

Here is an overview of the available car insurance coverages in New Brunswick:

Coverage Description
Public Insurance

Basic auto insurance coverage provided by the Provincial government. This generally includes liability, accident benefits and uninsured motorist coverage.

Available: No
Required: No

Private Insurance

Auto insurance policies created & sold by private insurance carriers. Though these carriers must still abide by Federal and Provincial regulations.

Available: Yes
Required: Yes

No-fault insurance

Having no-fault insurance doesn’t mean you can’t be found at fault. This coverage means you must first deal with your own insurance company for all claims, whether you’re at fault or not. But, New Brunswick will allow a no-fault driver to sue an at-fault driver for additional damages and costs that are not covered by their accident benefits.

Available: Yes
Required: Yes

Third-party Liability Insurance

Protects against damage caused by you while driving and includes injury and death to others and property damage. This is the only insurance coverage that is mandatory across Canada. Minimum coverage for New Brunswick is $200,000.

Available: Yes
Required: Yes

Accident Benefits

Covers your medical benefits if you’re injured in a crash, whether you’re at fault or not. The coverage includes your medical costs, while also paying for additional recovery costs, such as rehab, income replacement, and payment for and attendant care, if needed.

Available: Yes
Required: Yes

Direct Compensation-Property Damage (DCPD)

Covers damage to your vehicle and its contents, and for the loss of use of your vehicle when damaged – if another person was at fault. This coverage only applies if the crash occurs in a province where DCPD is mandatory, if two or more insured vehicles are involved, and if both insurers are licensed within that DCPD province.

Available: Yes
Required: Yes

Uninsured Motorist

Uninsured motorist coverage protects against injuries you and your family members sustain in a crash caused by an uninsured motorist. It can also cover your vehicle damages, if the uninsured driver is able to be identified.

Available: Yes
Required: Yes

Collision Insurance

Protects against damages sustained in a collision. This insurance covers you if your car is damaged in a crash – in both cases whether you crash into another other car or whether you crash into a stationary object.

Available: Yes
Required: No

Comprehensive Insurance

Protects against any losses a car owner may suffer, from events not related to driving. Such losses could include theft or damage from attempted theft; vandalism; environmental damage to a car from floods, fallen trees, and hail, etc.

Available: Yes
Required: No

Specified Perils

Covers your financial losses for damage caused specific perils – but only for perils chosen specifically for your policy. Available coverages are for theft; fire; damage from hail, lightning, wind, or flooding; earthquakes; explosions; riots; aircraft crash damage; and damage sustained during any transportation relocation.

Available: Yes
Required: No

All Perils

This combines the coverages you get with collision and comprehensive insurance. Additionally, all-perils also covers you if an employee, or someone who drives or services your car, steals it. It also covers you if someone you live with steals your vehicle.

Available: Yes
Required: No

Emergency roadside assistance

This service covers you for roadside callouts for emergencies such as dead batteries, towing, flat tires, keys locked in your car, empty gas tank, etcetera. Many insurance companies offer roadside assistance either included or in addition to other coverages. New Brunswick has the lowest roadside assistance membership of any province at 21%

Available: Yes
Required: No

*Table information sourced from (2017)

Historical New Brunswick auto insurance rates

All car insurance rate changes are approved by the New Brunswick Insurance Board (NBIB). NBIB ensures all New Brunswick drivers’ auto insurance rates are fair and reasonable. Even though drivers in New Brunswick pay some of the lowest car insurance rates in Canada, it still makes sense to compare car insurance quotes. Informed consumers help to keep rates competitive and as a citizen of New Brunswick, they are encouraged to shop around. Competition often leads to both better rates and service from car insurance providers. Reforms in car insurance have led to New Brunswick’s “First Chance Discount” offering new drivers’ credit for three years of driving experience and increasing to six if the new driver successfully completed a driver education course. This action alone led to significant reductions in car insurance premiums.

Factors that impact your New Brunswick car insurance quote

To find the best car insurance rate in New Brunswick, it pays to shop around. Yes, an insurance application is pretty standard and ask the same questions to determine your rate, but you’ll find that insurance rates can vary between providers. The variance is due to a few factors like who the insurance provider presently insures, the number of active claims on their current financial statements, and their overall tolerance for risk. There are also several other factors out of your control that can have a negative impact on insurance rate calculations. For example, history has shown that the frequency of claims decreases with age for both men and women, so older, more experienced drivers are rewarded with cheaper premiums. The average premium in a given area is the result of claims frequency and the average cost per claim, which means if you live in a densely populated area, you’ll likely pay more.

Here are 7 factors that determine your New Brunswick car insurance premium.

How to get cheap car insurance in New Brunswick?

Shop and compare

The NBIB wants you to shop around because it helps all citizens pay less for car insurance in New Brunswick. At, we generate car insurance quotes from Canada’s top providers all from one easy-to-use form. Research which car insurance company provides the best value for you and your car. In New Brunswick, rates change often, but lucky for you shopping for rates with us is free.

Stay with your current insurer

Some New Brunswick car insurance companies hand out loyalty discounts to drivers who remain active on their plans for years.

Bundle Your Policies

If you use the same insurance company for both your home and auto insurance needs, your insurer will often thank you with a dip in premiums.

Get a multi car discount research your vehicle

If you have multiple drivers and vehicles in the same household, by putting them all on one policy can save you money.

Research your vehicle

The model of car you drive, its safety rating, its price, the amount of times it gets stolen – all affect your automobile premium. New Brunswick uses the CLEAR table, a national project looking at all vehicles and the number of claims incurred with each. You can use it to pick the car with the cheapest auto insurance rate.

Increase your deductible

Your deductible is the portion you pay when settling a claim before your insurer will pay the rest. If you’re willing to double your deductible, it could save you money.

Ask about discounts

If you’re a member of CAA, a large corporation, union, or a school alumnus, it could help you get cheaper car insurance in New Brunswick.

Pay premiums annually, instead of monthly

Paying monthly adds administrative costs to your insurer, so if you’re able to pay in full annually you can lower your premiums.

Maintain a good driving record

If you’re a safe driver, obey the rules of the road and drive according to road conditions you can reduce your chances of an accident. Car crashes stay on your insurance record for up to ten years and can result in higher premiums.

Install winter tires or an anti-theft device

You can save by adding winter tires or anti-theft protection to your car. With winter driving conditions being so treacherous throughout New Brunswick it pays to be safe!

Keep track of your driving

You can even install a telematics device to collect driving data. With user-based insurance (UBI) you can earn discounts based on not driving far or often, and on advanced stats like how carefully you brake and accelerate.

Take a course

If you’re new to driving, a driver’s education course will save money. Your car insurance provider will think of you as a safer driver if you’ve been trained by professionals.

How to get an New Brunswick driver's licence

New Brunswick uses a graduated license program (GLP). This system requires each driver to progress through a 3-step educational program in order to be considered a fully licenced driver. Once you’ve successfully completed the program, you can legally operate a car as a class 5 driver. To drive a truck, bus, ambulance or taxi requires a different license class. Let’s take a quick look at graduated license program approach:

Class 7 learner's licence (or level one) eligibility criteria:

  • You need to be at least 16 years of age

  • Have the consent of your parents, or legal guardian, if you are under 18

  • Provide three official pieces of ID (one with photo) from this list

  • Pass a vision test

  • Pass a written test about the rules of the road

  • Pass a road test

  • Pay the associated written test fees

  • Can't drive between midnight and 5am

  • Can’t consume alcohol and drive

  • Must be accompanied by an eligible class 5 licenced driver

Class 7 licence (or level two) eligibility criteria:

  • Successfully hold level one for 12 months (or 8 months with a driver’s education course)

  • Book and pass your level two road test

  • You must pay an administrative fee for the road test

  • You can drive between midnight and 5 a.m. if accompanied by an experienced driver

  • Can’t consume alcohol and drive

Class 5 regular licence (or full license) eligibility criteria:

  • Held Level 1 license for 12 months

  • Held level 2 license for 12 months

Frequently Asked Questions about New Brunswick auto insurance

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