Newfoundland car insurance

How car insurance coverage works in Newfoundland and Labrador

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:

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, 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.

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 Newfoundland & Labrador 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: No
Required: No

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.

Available: Yes
Required: No

*Table information sourced from http://www.ibc.ca (2017)

Historical Newfoundland auto insurance rates

Drivers in Newfoundland and Labrador pay some of the highest car insurance rates, on average, in Canada. The auto insurance rates are governed by the Newfoundland and Labrador Board of Commissioners of Public Utilities. They review and report on issues as they relate to car insurance, including why there are increasing claims costs and methods to help reduce these costs. Due to the province’s relatively expensive auto insurances pricing, it is imperative to compare car insurance quotes to ensure you’re getting the best policy to suit your needs. In fact, citizens of Newfoundland and Labrador are encouraged to compare rates and consult with industry experts before finalizing their car insurance policy. Informed consumers help to create a more competitive market, which often leads to both better rates and service from car insurance providers.

Factors that impact your Newfoundland car insurance rates

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.

How to get cheap car insurance in Newfoundland?

Shop and compare

At Ratehub.ca, we generate car insurance quotes using our car insurance calculator 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 Newfoundland and Labrador, rates change often, but lucky for you shopping for rates with us is free.

Stay with your current insurer

Some auto insurance companies will give loyalty discounts to drivers who remain active with them for years. Especially if they add family members or multiple vehicles to their policy.

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.

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. Newfoundland 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-Atlantic, a large corporation, union, or a member of your school alumni, you could 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

You can save up to 5% simply by adding winter tires to your car. With winter driving conditions being so treacherous throughout Newfoundland it pays to be safe!

Install equipment for a more protected drive

Discounts exist for anti-theft devices, winter tire installation, and even using telematics devices. Telematics monitor your driving behavior – km’s driven, how you brake, and how you handle a turn. Insurance companies in Newfoundland and Labrador are only allowed to offer discounts when using telematics; they cannot increase your premium.

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 Newfoundland driver's licence

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

Frequently Asked Questions about Newfoundland auto insurance

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