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Compare Prince Edward Island car insurance quotes

Learn about how auto insurance works in PEI and compare personal car insurance quotes from top Canadian providers, for free.

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How car insurance in PEI works

Prince Edward Island (PEI) car insurance is mandatory and provided by private insurance companies and brokers. The Office of the Superintendent of Insurance regulates the business of insurance granting licenses to insurers, agents, and adjusters operating in the province.

PEI is a no-fault province meaning that you'll only ever deal with your insurer, regardless of who's at fault following an accident.

Some car insurance coverage is mandatory, but there are optional coverages to further protect yourself. 

Mandatory PEI auto insurance coverage includes (full descriptions below)

  • Third-party liability
  • Accident benefits 
  • Uninsured automobile insurance
  • Direct Compensation Property Damage (DCPD)

Optional PEI car insurance coverage includes (full descriptions below)

  • Collision insurance
  • Comprehensive car insurance
  • Specified perils
  • All perils

There are also Optional Policy Change Forms (OPCF) which are endorsements you can add to your coverage. Here are 3 common Ontario endorsements. 

  • OPCF 20 - covers the cost of a rental vehicle while yours is being repaired or replaced
  • OPCF 27 - Ports your existing insurance to a rental car or car you borrow
  • OPCF 43 - Removes depreciation in calculating the value of your car when settling a claim

Finally, a high-risk driver – someone with a number of convictions on their record, or a DUI, may find it difficult to afford their premiums. If so, they can use The Facility Association who work with insurance companies to guarantee coverage for those in need. 

A brief history of PEI car insurance rates

The Island Regulatory and Appeals Commission (IRAC) reviews, approves, and enforces car insurance rates.

In late 2003, Prince Edward Island made significant changes to auto insurance including an introduction of rate regulation. It mandated all car insurance providers to seek IRAC authorization for any rate increases (or decreases). Now, each insurer must file its rates for review once a year.

Rates subsequently decreased approximately 10% the following year. Between 2004 and 2006 some insurers dropped their rates by as much as 30%. Now, residents of PEI pay the second lowest car insurance rates in the country. The average rate calculation for any region is the result of how many claims are submitted there and the costs of those claims.

The average price for car insurance in PEI for 2020 is $816. 

Mandatory coverage for auto insurance in PEI

Mandatory insurance is mostly about protecting you from damage you may cause to others and their property. Protecting you car is in optional coverages.

Third-party liability

Accident benefits

Uninsured motorist

Direct Compensation Property Damage (DCPD)

Optional car insurance coverage in PEI

You can personalize your coverage with these common additions that protect your car.

Collision insurance

Comprehensive insurance

Emergency roadside assistance

Specified perils

All perils

Are you getting the best price for PEI auto insurance?

In less than five minutes, you can compare multiple car insurance quotes from PEI's top providers, for free.

How to get cheap car insurance in PEI

  1. Shop and compare

    Research which company provides cheap car insurance in PEI, and also the best value for you and your vehicle. Rates may change up to four times a year, but lucky for you comparing car insurance quotes with us is free.

  2. Stay with your current insurer

    Some PEI car 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.

  3. 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.

  4. 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.

  5. 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.

  1. Ask about discounts

    If you’re a member of a large corporation, union, or a school alumnus, it could help you get cheaper PEI car insurance.

  2. 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.

  3. 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.

  4. Install winter tires

    You can save up to 3-5% simply by adding winter tires to your car.

Hot to get a PEI driver's licence

As a new driver, before you buy car insurance in PEI, you need to apply to their Graduated Driver Licensing (GDL) Program. It’s a three-year program that must be completed in order to get your full Class 5 driver’s license and it all starts with your Instruction Driver’s Permit. All license and registration services are processed through Access PEI. Let’s take a quick look at graduated license program approach to get a drivers license in PEI:

G1 licence (or level one) eligibility criteria:

Stage 2 or Class G licence (or level two) eligibility criteria:

Stage 3 or G licence (or level three) eligibility criteria:

Full licence or Class 5 eligibility criteria:

Are you looking for the best PEI home insurance rate?

In less than 5 minutes, you can compare multiple home insurance quotes from Canada's top providers for free. Comparing rates online could save you hundreds of dollars.

Frequently asked questions about PEI auto insurance

What does a PEI license plate cost?

What happens if you're in an accident in PEI?

How much is car insurance in PEI?

What are the best insurance companies in PEI?

How long do driving offences stay on my driving record in PEI?

Is roadside assistance required in PEI?

Matt Hands, Business Director of Insurance

With 6+ years of experience at, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio

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