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.

Driver demographics

Age and gender are factors when determining car insurance rates. An older female will pay less than a young male – because females make fewer claims and younger drivers typically carry more risk. Other demographic type factors include the number of kilometres you’re driving, driving convictions on your record, and whether you acquired any driver’s education certification.

Where you live

Each area in Nunavut has a different claims experience due to the different tundra, mountains, and remote villages you may find. Where a Nunavut driver lives makes a difference in the eyes of the insurer. For instance, your comprehensive coverage can go up in urban areas due to a higher chance of theft. A driver in Iqaluit will pay more than someone from Clyde River because of population density.

Vehicle type

It costs more to insure a high-priced vehicle due to exclusive parts making for costly repairs. That’s simple and easy to understand. The type of car you’re driving, its make, model, year, and even the type of engine in the car will affect the driver’s insurance premium on your car.

Driving history

Any driving convictions can lead to an increase in the cost of a car insurance premium. A safer driver will have a cleaner record and therefore a lower premium. Nunavut operates on a demerit point system. You earn demerit points with each conviction. The premium surcharge will be reflected with the number and type of convictions. In Nunavut, your convictions stay on record for 2 years.

Driving activity

The more kilometres you’re driving on the road, the more you will pay in car insurance premiums. How you use your vehicle has an effect on your auto insurance rate, too. It’s so important that you’re honest and up front with your insurer because any omission of details may affect the amount of payout you receive in an accident; even denying your claim altogether.

Type of insurance coverage

Your premium can be affected by the type of insurance coverage you select. For instance, if you opt to pay a higher deductible in case of an accident, your insurer will take that into consideration and may reduce your premium. A large majority of citizens in Nunavut 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’s lots of ways to save money on your car insurance in Nunavut. 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 Nunavut, an anti-theft device can save you money.

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

Do I need auto insurance in Nunavut?

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

Why does car insurance in Nunavut cost so much?

The number of claims, the cost of those claims, fraud, and theft all play a major role in determining the average car insurance rate.

Do I need winter tires in Nunavut?

No, but it is recommended for safe driving and can save you money in car insurance.

Is roadside assistance required in Nunavut?

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. CAA, for instance, starts at $70/year and members can save up to 20% (or roughly $280) on car insurance.

How do I report a claim in Nunavut?

Call your insurance broker or the company from where you purchased your car insurance. It can be found online or on your insurance slip often kept in the glove box. Most insurers are available 24 hours a day for claims. Be as detailed as possible when speaking with them and include all the information you have on hand including car make, license plate, driver’s license information, and your account of what happened. Take photos if possible.

How long do driving offences last on my driving record in Nunavut?

Nunavut operate on a demerit point system. If you earn 12 demerit points your license can be suspended. Points for any offence are automatically removed two years after the date of conviction.

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