In Newfoundland and Labrador car insurance is mandatory and provided by private insurance companies and brokers. The province has instituted standards for 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. You are also required to carry uninsured and unidentified coverage protecting you if you’re involved in an accident with a driver who is uninsured or one that cannot be identified. It’s recommended you speak to your private insurer to get more coverage. For instance, many Newfoundlanders will opt for comprehensive and collision insurance to better protect themselves and their vehicle.
Here is an overview of the available car insurance coverages in Newfoundland:
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, Newfoundland 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 Newfoundland & Labrador 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.
*Table information sourced from http://www.ibc.ca (2017)
To find the best car insurance rate in Newfoundland, it pays to shop around. Insurance applications are pretty standard and generally ask the same questions, but you’ll find that insurance rates can vary by provider. This is due to a few factors, including: who the insurance provider presently insures, how many active claims are on their current financial statements, and the companies’ overall tolerance for risk. There are several other factors beyond your control that can have a negative impact on an insurance rate calculation. For instance, age has historically led to a lower frequency of claims for both men and women. Older, more experienced drivers are rewarded with cheaper premiums. The average premium in any given area is the result of the amount claims and the average cost per claim. If you live in a densely populated area, you’ll likely pay more.
Here are 7 factors that determine your car insurance premium.
Since 1999, Newfoundland has used a Graduated License Program (GLP). The system requires each driver to progress through two educational phases in order to be considered a fully licenced driver. Once you’ve successfully completed the program, you can legally operate a car. Let’s take a quick look at graduated license program approach:
Learner's Class 5 license phase (Novice/level one) eligibility criteria:
You need to be at least 16 years of age
If you are under 19, consent is required from a parent or legal guardian
Proof of age and ID with original documentation
Pass a written test about the rules of the road
Pass a vision test
Pay the associated test fees
Display novice driver sign in conspicuous positionn at rear of vehicle
Can't consume alcohol and drive
Must be accompanied by an eligible class 5 licenced driver
Can't drive between midnight and 5am
Novice Driver (Class 5/level two) eligibility criteria:
Held a Learner’s license until your 17th birthday (or be 16 years 8 months if you pass a long-course driver training program)
Book and pass a road test
You must pay an administrative fee
You can drive between midnight and 5am, if accompanied by an experienced driver
Can’t consume alcohol and drive
Class 5 regular licence (or full license/level three) eligibility criteria:
Must spend 12 months at level 2