Compare Prince Edward Island car insurance quotes

Q: What does a PEI license plate cost?

Annual Registration Fees for Miscellaneous Vehicles Type of Vehicle Annual Registration Fee Vehicle with a dealer plate $100 Vehicle with a motorcycle or motorscooter plate $40 Vehicle with a moped plate $20 Truck-tractor used to haul trailer transporting special mobile equipment $150 Vehicle used as a hearse or ambulance $24 Service truck with permanently mounted device, mobile crane and special mobile equipment $68 Motorhome $150 Farm truck (a) two or three axle $10 (b) truck-tractor $10

Q: What are the best insurance companies in PEI?

Auto insurance in PEI is based on many factors, so determining the right company for you can be tricky since each one rates demographics, driving history, and car model differently. Our recommendation is to compare PEI insurance quotes to find the company that will give you the best value for your situation.

Q: Is roadside assistance required in PEI?

No, but it’s best practice to have it in case of a battery failure, tire puncture, or you need a tow. CAA Atlantic memberships start at $80/year.

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

Matt Hands, VP, Insurance and MoneySense

September 18, 2023

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

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.
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.
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.
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 a large corporation, union, or a school alumnus, it could help you get cheaper PEI 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 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?

Annual Registration Fees for Miscellaneous Vehicles
Type of Vehicle	Annual Registration Fee
Vehicle with a dealer plate	$100
Vehicle with a motorcycle or motorscooter plate	$40
Vehicle with a moped plate	$20
Truck-tractor used to haul trailer transporting special mobile equipment	$150
Vehicle used as a hearse or ambulance	$24
Service truck with permanently mounted device, mobile crane and special mobile equipment	$68
Motorhome	$150
Farm truck (a) two or three axle	$10
(b) truck-tractor	$10

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

Safety first. Ensure everyone's ok, call emergency services if not, and, if possible, move your car away from traffic. If, on a rough scan, the damage looks to exceed $2,000, call the police. However, a minor accident should still be reported to your insurance company. Call your PEI insurance broker or insurance provider and go over the accident with them and include as many details as possible. The sooner you call, the faster the claims process will be.

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?

Prince Edward Island uses a demerit point system that are applied to your driving record. Demerit points will negatively impact your car insurance premiums. If you receive the maximum number of demerit points (12), your license could be suspended for 3 months. If you are at 11 points, you may be rewarded 3 merit points upon successful completion of a Canada Safety Council Defensive Driving Course. Demerit points are stricken from the record after 2 years from date of conviction.

Is roadside assistance required in PEI?

Matt Hands, Business Director of Insurance

With 6+ years of experience at Ratehub.ca, 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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