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:
Basic auto insurance coverage provided by the Provincial government. This generally includes liability, accident benefits and uninsured motorist coverage.
Auto insurance policies created & sold by private insurance carriers. Though these carriers must still abide by Federal and Provincial regulations.
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.
|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.
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.
|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.
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.
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.
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.
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.
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.
|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%
*Table information sourced from http://www.ibc.ca (2017)
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.
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