New Brunswick car insurance

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 http://www.ibc.ca (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 rates

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 car insurance premium.

Driver demographics

The longer a driver holds a license should mean a lower possibility of a claim being made. Gender and age play an important role in determining a driver’s car insurance premium. Young men, aged 25 and under, historically get into more car accidents and will pay higher premiums. Auto insurance companies look at historical data to understand their risk and price it with this knowledge. Other demographic type factors include the amount of time spent driving, driving convictions, and whether you have any driver training.

Where you live

Each area in New Brunswick has a different claim experience due to varying local conditions in weather, its effect on the roads, and the mix of vehicles you’ll find in that area. In 2007, the number of territories was increased from 4 to 11 in order to deliver more accurate pricing. Where a New Brunswick driver lives makes a difference in the eyes of the insurer. Comprehensive coverage can go up in urban areas due to a higher chance of theft and vandalism. Moncton, Saint John, and Fredericton are territories unto themselves and elsewhere in the province are divided by general region to deliver more accurate rates. Living close to major roads and intersections means you probably live in an area with more cars on the road and a higher risk of accidents thus raising your insurance.

Vehicle type

It costs more to insure a vehicle with expensive parts. That’s simple and easy to understand. The type of car, the make, model, year, its value, and even the type of engine inside will affect your driver’s insurance premium. In New Brunswick, there is a classification system that ranks vehicles by their claims experience. The better the claims experience (the fewer the claims) on any particular model will result in lower premiums. In New Brunswick, driving a Hybrid vehicle may get you a discount.

Driving history

Any driving convictions can lead to an increase in the cost of a car insurance premium. The safer the driver, the cleaner the record, the lower the premium. A driving conviction can be classified as minor, major, or criminal code. The premium surcharge will be reflected with the number and type of convictions. The rating program in New Brunswick considers minor and major convictions in the past three years and any criminal code violations will stay active within the past 3-4 years.

Driving activity

If you drive a lot, you will pay a higher car insurance premium. The use of a vehicle has an effect on your auto insurance rate. Be honest and up front with your insurer otherwise your omission may affect the amount of payout you receive in an accident; maybe even denying your claim altogether. Tell them if you’re driving for pleasure, commuting to and from work, and if you use your car for businesses, as they will all result in a different premium. You can save on auto insurance by reducing the number of kilometres driven, by using public transit, biking, or walking.

Type of insurance coverage

The chosen coverage, and your choice of deductible, can affect your premium. For instance, if you opt to pay a higher deductible in case of an accident, your insurer will look at this favourably and may reduce your premium. A large majority of citizens opt for a higher third-party liability coverage to at least $1 million which may cost a little more now but save you big if you need to access it.

Applicable discounts

There are lots of ways to save money on your car insurance in New Brunswick. Start by being a better driver, get a clean record, and you will save in car insurance. If you have more than one vehicle insured with the same company, it could reduce your premiums. In New Brunswick, an anti-theft device saves you money.

How to get cheap car insurance in New Brunswick?

Shop and compare

The NBIB wants you to shop around because it helps all New Brunswick citizens pay less for car insurance. At Ratehub.ca, 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 car insurance companies in New Brunswick 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 an New Brunswick faction of CAA, a large corporation, union, or a school alumnus, it could help you get cheaper car insurance.

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

Do I need auto insurance in New Brunswick?

Yes, everyone in New Brunswick who drives a car is required to buy auto insurance. There are mandated minimums but most people up their minimums for more coverage.

Does my insurance cover me if I drive for Uber or Lyft?

Uber and Lyft have not yet entered the Market in New Brunswick as disputes continue between ride sharing services and taxi companies.

Why is car insurance cheaper in New Brunswick?

Much of the credit for cheap car insurance in New Brunswick goes to the provincial government. In the early 2000’s car insurance premiums were on a dramatic rise causing some drivers to cancel their insurance altogether. The province put reforms in place offering more choice to consumers. Now, drivers can pick from 65 different car insurance companies and a big variety of options therein. Due to the high level of competition, the more the people of New Brunswick get auto insurance quotes the cheaper their car insurance rates.

Do I need winter tires in New Brunswick?

No, you don’t need winter tires on your vehicle, but it can save you up to 5% on insurance. Winter tires are also a great safety measure - they’re softer proving a stronger grip on ice and snow.

Is roadside assistance required in New Brunswick?

No, but it can save you money on car insurance. It’s also great for peace of mind in case of a battery failure, tire puncture, or you need a tow.

How do I report a claim in New Brunswick?

Call your private insurance company. You can use the internet to find their number or their contact details are often on the insurance slip people usually keep in the glove box. Make sure you’re ready when you call and have as many details available as you can - driver’s license numbers, the make of the cars and the license plates. If someone is injured or hurt, or a car cannot be moved, it’s best to call the local police.

How long do driving offences last on my driving record in New Brunswick?

New Brunswick operates on a rating program which considers minor and major convictions in the past three years and any criminal code violations will stay active within the past 3-4 years

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