Nunavut car insurance

How car insurance coverage works in Nunavut

On April 1, 2013 the government of Nunavut took over as the administrator for the territory’s auto insurance. Before that, since 1999, the Northwest Territories had provided these services. In Nunavut, car insurance is mandatory and available for purchase via private insurance companies and brokers. The northern most territory has instituted standards for mandatory coverage that includes $200,000 in third-party liability insurance. This protects drivers in the event they cause injury or death to a third party. You are also required to carry no-fault insurance, meaning you must first deal with your own insurance provider for claims and accident benefits if you’re involved in a crash. It’s recommended you speak to your private insurer to get more coverage. For instance, many drivers in Nunavut 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 Nunavut:

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, Nunavut 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 Nunavut 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 Nunavut auto insurance rates

Drivers in Nunavut pay around the national average for car insurance in Canada. The auto insurance rates are governed by the Department of Economic Development and Transportation. The department will 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 territory’s rising auto insurance 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 Nunavut 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 Nunavut car insurance rates

To find the best car insurance rate in Nunavut, it pays to shop around. Even though insurance applications are fairly standard with many of the same questions, you’ll find that insurance rates can differ between providers due to a few factors. The insurance company determines rates based on who they presently insure, how many active claims are on their current financial accounts, and the underwriter’s overall tolerance for risk. There are several other elements you can’t control that can have a negative effect on an insurance rate estimate. 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 and cost of all claims. 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 Nunavut?

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 Nunavut, rates change often, but lucky for you shopping for rates with us is free.

Stay with your current insurer

Some car insurance companies in Nunavut 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

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. Research which automobiles have a low occurrence of theft to save on auto insurance.

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-Manitoba (which covers Nunavut), 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 Nunavut 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 Nunavut driver's licence

If you are 15 or older, you can apply for a driver’s license in Nunavut from the Motor Vehicles office. Once you’ve passed a few tests, you can apply for a license from any of the Department of Economic Development and Transportation offices.

Learner's permit Class 7 license phase (or level one) eligibility criteria:

  • You need to be at least 15 years of age

  • Provide proof of legal name, date of birth, and signature. (e.g. Passport, birth certificate)

  • Pass a vision test

  • Pass a written test about the rules of the road

  • Pay the associated written test fees

Class5 (or level two) eligibility criteria:

  • You need to be at least 16 years old

  • Have practiced a minimum of 4 weeks

  • Have less than 5 demerit points

  • Book and pass a road test

  • Pay an administrative fee for the road test

  • Pay the upgrade fee for the class 5 license

Frequently Asked Questions about Nunavut auto insurance

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