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. A driver with a number of convictions on their record may find it difficult to afford their premiums and can turn to The Facility Association who guarantees availability of automobile insurance to those eligible. PEI’s 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. In PEI, you are also required to have uninsured coverage in case you’re in an accident with an uninsured driver. However, you’ll want to speak with a private insurer to determine which additional car insurance coverage might best suit your protection needs. For instance, most people in PEI increase their third-party liability coverage to at least $1 million.
Here is an overview of the available car insurance coverages in Prince Edward Island:
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, Prince Edward Island 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 Prince Edward Island 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 PEI, it pays to shop around for car insurance quotes. An insurance application is fairly standard, with each provider asking a similar set of questions to determine your rate. Though you’ll find that insurance rates can vary between providers. The differences in rates reflect a few factors, such as: who that company presently insures, the number of active claims they are currently processing, and the insurers own tolerance for risk. There are several other factors out of your control that can impact your rate calculation, such as age. Usually the frequency of claims goes down with age – and that’s true for both men and women, and therefore an older, more experienced driver, will be rewarded with a cheaper premium.
Here are seven factors that help to determine your car insurance premium.
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:
G1 licence (or level one) eligibility criteria:
You need to be at least 16 years of age
Parent or legal guardian consent for drivers under the age of 18
Bring Valid ID and 2 other pieces that have your name and address
Pass a vision test
Pass a written test about the rules of the road
Pay the associated written test fees
Display the “L” decal
Can’t consume alcohol and drive
Must be accompanied by an eligible licenced driver
Only immediate family members are allowed in the car
If you are under 21, you can’t drive between 1 a.m. and 5 a.m.
Stage 2 or Class G licence (or level two) eligibility criteria:
Have held the Instruction Driver’s Permit for 365 days (reduced to 275 days if enrolled in a driver education program)
Book and pass your level two road test
You must pay an administrative fee
Display “G” decal in the window
Only one non-family member is permitted as a passenger
You can’t drive between 1 a.m. and 5 a.m. unless you apply for work exemption
Can’t consume alcohol and drive
Stage 3 or G licence (or level three) eligibility criteria:
Drive for one full year with Stage 2 license
Display the “G” decal
Can’t consume alcohol and drive
Full licence or Class 5 eligibility criteria:
Pass a behind-the-wheel road test for your full driver’s license