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Newfoundland and Labrador Car Insurance

Photo of the Newfoundland and Labrador flag on a map

Newfoundland and Labrador requires all vehicles on its roads to carry a minimum amount of car insurance. This protects you financially in case you cause damage or injury to another driver or their vehicle. Having the right auto insurance in Newfoundland and Labrador can give you peace of mind every time you get behind the wheel.

This guide will provide an overview of car insurance in Newfoundland and Labrador. We’ll discuss average costs, what impacts your premiums, minimum coverage requirements, additional options, how insurance companies calculate rates, tips for savings, major providers, the claims process, laws and regulations, high-risk drivers, accident statistics, and specialty vehicle insurance.

By the end, you’ll understand everything you need to know to make smart decisions when shopping for auto insurance in Newfoundland and Labrador. With this knowledge, you can find the right policy at the best possible price.

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Why You Need Car Insurance in Newfoundland

Car insurance is mandatory by law in Newfoundland and Labrador. Under the province’s Highway Traffic Act, all vehicles driven on public roads must carry a minimum amount of liability coverage. Failure to have active auto insurance can result in fines, license suspension, and impoundment of your vehicle.

Beyond being legally required, car insurance provides important financial protection in the event of an accident. It covers damage you may cause to other people’s vehicles and property, as well as injuries to other drivers, passengers, and pedestrians. Without coverage, you would be personally responsible for these costs, which could amount to hundreds of thousands of dollars. Insurance helps shield you from potentially devastating expenses.

Insurance also covers damage to your own vehicle from collisions, theft, vandalism, natural disasters, and more. Repairing or replacing a car can be very costly. Insurance significantly reduces your own out-of-pocket repair bills and provides peace of mind that you’ll be covered in the case of an unexpected incident on the road.

 

Average Cost of Car Insurance

Car insurance rates in Newfoundland and Labrador are among the highest in Canada. On average, Newfoundland drivers pay approximately $1,168 per year for car insurance. This works out to about $97 per month.

Here’s a look at average car insurance premiums in Newfoundland based on age:

 

– Drivers under 25 years old: $2,526 per year ($211 per month)

– Drivers 25-34 years old: $1,392 per year ($116 per month)

– Drivers 35-44 years old: $1,104 per year ($92 per month)

– Drivers 45-54 years old: $912 per year ($76 per month)

– Drivers 55-64 years old: $864 per year ($72 per month)

– Drivers over 65 years old: $792 per year ($66 per month)

 

As you can see, younger drivers pay significantly more for car insurance than other age groups. Rates start coming down around age 25 and continue to decrease incrementally until age 65.

Compared to other provinces, car insurance rates in Newfoundland and Labrador are among the highest. Only Ontario and British Columbia have higher average premiums. Here’s how Newfoundland stacks up against other provinces:

 

– Ontario: $1,316 per year ($110 per month)

– British Columbia: $1,832 per year ($153 per month)

– Alberta: $1,316 per year ($110 per month)

– Newfoundland and Labrador: $1,168 per year ($97 per month)

– Nova Scotia: $922 per year ($74 per month)

– New Brunswick: $868 per year ($72 per month)

– Prince Edward Island: $611 per year ($51 per month)

– Saskatchewan: $985 per year ($82 per month)

– Manitoba: $1,082 per year ($90 per month)

– Quebec: $793 per year ($66 per month)

 

Factors That Affect Your Premiums

Your car insurance premium is calculated based on several factors. The main ones that affect your rate are:

 

Age

Drivers under 25, especially teenage drivers, pay the highest premiums. Insurance companies consider younger drivers more likely to take risks and get into accidents. As you get older and gain more experience behind the wheel, insurers see you as less of a risk and your premiums will decrease. However, premiums start to rise again after age 65.

 

Gender

Statistically, men get into more serious accidents than women. As a result, young male drivers typically pay more for insurance than young female drivers.

 

Driving Record

Your driving history is a major factor in determining your premium. Getting tickets for speeding, running red lights, reckless driving and being involved in at-fault accidents will increase your premium substantially. However, a clean record with no violations will earn you discounts.

 

Location

Where you live plays a big role in your rate. If you live in a dense urban area where the risk of accidents and theft is higher, you will pay more. Drivers in rural areas generally pay less.

 

Minimum Coverage Requirements

All drivers in Newfoundland must carry a minimum amount of car insurance coverage in order to legally operate a vehicle. The mandatory minimums are set by the province and required by law. Failing to carry proper insurance can lead to fines, loss of license, and impoundment of your vehicle.

The minimum liability coverage required in Newfoundland is:

 

  • $200,000 for third-party liability
  • $200,000 for direct compensation property damage
  • $200,000 for uninsured/unidentified motorist coverage

 

Liability coverage protects you if you cause damage, injury, or death to another driver, their passengers, or their property in an at-fault accident. It covers the costs of repairing or replacing the other party’s vehicle and pays for medical bills and lost income for injured parties up to the coverage limit.

Direct compensation property damage covers damage to your own vehicle if you are not at fault in an accident. It allows you to make a claim through your own insurer rather than trying to collect from the at-fault driver.

Uninsured/unidentified motorist coverage protects you if you are in an accident caused by a hit-and-run driver or someone without insurance. This coverage pays for your vehicle repairs and medical costs in such situations.

In addition to liability, Newfoundland requires drivers to carry a minimum of $25,000 in accident benefits coverage. This pays for medical care, rehabilitation, loss of income, and funeral costs for you and your family if injured in an accident, regardless of fault.

 

Additional Coverage Options

In addition to the minimum coverage required by law, there are other optional coverage types you may want to consider adding to your policy:

 

Collision Coverage

Collision coverage pays to repair or replace your vehicle if it’s damaged in an accident with another car or object, regardless of who is at fault. This coverage protects you from financial loss if your car is totalled or sustains significant damage. Without it, you’d have to pay those costs out of pocket.

 

Comprehensive Coverage

Comprehensive coverage helps pay for vehicle damage from non-collision-related incidents like theft, vandalism, fire, hail, flood, striking an animal, or falling objects. It provides protection beyond collision coverage for things that could happen to your car outside of an accident.

 

Rental Reimbursement

Rental reimbursement coverage can help pay for a rental car while your vehicle is being repaired after an accident. It reimburses you for transportation expenses up to a daily limit. This keeps you mobile while your car is in the shop.

Carefully review each option with your insurer or agent. Adding more coverage will increase your premium, but may be worth it for the peace of mind and financial protection.

 

How Insurance Companies Calculate Your Rate

Insurance companies use sophisticated risk assessment models to calculate premiums based on a variety of factors. The biggest determinants are:

 

Driving Record

Your driving history has a major impact on your rate. Expect to pay higher premiums if you have multiple speeding tickets, at-fault accidents, license suspensions or a DUI on your record. Clean records generally get the best rates.

 

Credit History

Insurers have found a correlation between credit scores and the likelihood of filing a claim. Poor credit will drive your rates up, while good credit can lower your premiums.

 

Coverage Usage

The amount of insurance you buy also affects your rate. Higher limits for liability, collision and comprehensive coverage mean higher premiums. Reduce your coverage to lower your costs.

 

Vehicle

Insurers classify vehicles into different “rate classes” based on repair costs, accident rates, theft rates and other factors. Expect higher premiums for luxury cars and sports cars. New and expensive vehicle models also tend to have higher rates.

 

Discounts

Most companies offer discounts that can lower your premiums. Look for savings if you’re a student, took a defensive driving course, have multiple policies with the same provider, have anti-theft devices installed or are insuring a low-mileage vehicle. Ask your insurer what discounts are available.

 

How to Get the Best Rate

Getting the best car insurance rate in Newfoundland requires some effort on your part. Here are some tips to help you save:

 

Shop Around

Get quotes from multiple providers. Rates can vary widely between insurance companies, so check with at least 3-4 to find the best deal.

 

Maintain Good Driving Record

Drivers with clean records save the most on car insurance. Avoid accidents, traffic violations and drunk driving. Take a defensive driving course – insurers may provide a discount.

 

Adjust Coverage

Raise your deductibles and drop collision/comprehensive coverage on older vehicles. Remove extras you may not need. But don’t skimp on liability.

Comparing quotes and policies takes time, but the savings are worthwhile. With some smart moves, you can secure the lowest possible auto insurance rate.

 

Major Car Insurance Providers in Newfoundland

There are several major insurance providers that offer car insurance in Newfoundland. Here are some of the top options to consider:

 

TD Insurance

TD Insurance, powered by TD Bank, is one of the largest insurance providers in Canada. They offer a range of coverage options and discounts for Newfoundland drivers. TD Insurance has over 60 locations across Atlantic Canada to serve customers.

 

PC Financial Insurance

President’s Choice Financial, also known as PC Financial, provides affordable coverage options from coast to coast. PC Financial offers usage-based insurance plans and discounts for members. They have an easy online quoting and claims process.

 

Westland Insurance

Westland Insurance is one of Canada’s leading property and casualty insurers. They offer car insurance across Newfoundland with options for savings and budget-friendly payment plans. Westland Insurance has strong financial backing and exceptional claims service.

 

Wedgwood Insurance

Wedgwood Insurance provides personalized coverage options for residents and businesses in Newfoundland. They are based in St. John’s and have over 50 years of experience serving the province. Wedgwood represents over 20 top-rated insurance companies.

 

Anthony Insurance

Anthony Insurance is one of the largest independent brokers in Atlantic Canada. They offer car insurance from national and regional providers with flexible payment options. Anthony Insurance has locations across Newfoundland to serve local communities.

 

Filing a Claim

If you get into an accident, it’s important to know what to do and what to expect when filing an insurance claim in Newfoundland. Here are some key steps:

 

Report the Accident

Notify the police right away if anyone is injured, there is significant damage, or the other driver leaves the scene. The police report will be important for your claim. You’ll also need to call your insurance provider as soon as possible to start your claim.

 

Work with the Adjuster

A claims adjuster will be assigned to your case. They will investigate the accident details, assess damages, and determine fault. Cooperate fully by providing them any evidence like photos of the accident scene, police reports, and medical documentation if you were injured.

 

Get Your Vehicle Appraised

Your adjuster will arrange an appraisal to evaluate the cost of repairs for your vehicle. You can get a separate estimate yourself from a trusted body shop.

 

Receive a Settlement Offer

Once your adjuster has all the necessary information, they will present you with a settlement offer. Negotiate if you feel it is too low before accepting.

 

Get Your Vehicle Repaired

Take your vehicle to an authorized repair shop once you accept the settlement. The shop will handle coordinating payment with the insurance company.

The claims process can take weeks or months depending on factors like claim complexity and delays getting police reports. Stay persistent and proactive throughout the process to get the best resolution.

 

Laws and Regulations

Insurance laws and regulations in Newfoundland and Labrador are governed by the province’s Department of Service NL. All drivers are required to carry a minimum level of auto insurance in order to operate a vehicle legally. The minimum liability coverage required by law is $200,000 for bodily injury or death to one person, $200,000 total for bodily injury or death to two or more people, and $200,000 for damage to property.

Recent changes to auto insurance laws include an increase in the minimum required third party liability coverage, which went up from $200,000 to $500,000 in 2015. This change helps ensure victims of collisions are adequately compensated.

Enforcement of insurance laws is carried out in a few ways. Police can request proof of valid insurance during a traffic stop. Drivers caught without proper coverage may face fines up to $5,000 for a first offense. Their vehicle registration and license plates may also be suspended until proper insurance is obtained. Additionally, Service NL and the Royal Newfoundland Constabulary conduct periodic spot checks around the province to verify drivers have proper documentation.

Overall, staying up-to-date on insurance requirements and maintaining continuous coverage is crucial for all drivers in Newfoundland and Labrador. Proper insurance not only meets legal obligations, but also provides critical protection in the event of an accident.

 

High Risk Drivers

Some drivers are considered high risk by insurance companies, which means they will pay higher premiums. This includes young drivers, drivers with DUI convictions, and those with past accidents.

 

Young Drivers

In Newfoundland and Labrador, drivers under 25 years old are considered high risk. This is because statistically young drivers are more likely to get into accidents, file claims, and commit driving infractions. As a result, teens and young adults pay much higher premiums.

On average, drivers under 25 in NL pay $236 a month for car insurance. This is nearly double the provincial average. Rates don’t start to go down until about age 25, assuming the driver has a clean record.

 

DUI Convictions

A DUI conviction will also result in much higher car insurance premiums in Newfoundland and Labrador. Some insurers may refuse to provide any coverage at all after a DUI. On average, rates go up by $408 a month after a first-offense DUI.

It takes about 3 years for rates to start decreasing again after a DUI conviction. Maintaining a clean record is important. Additional DUIs will spike rates even higher.

 

At-Fault Accidents

Drivers who cause accidents are also labeled high risk. Even a single at-fault accident can increase your car insurance premiums substantially. Rates can go up by hundreds of dollars a month.

It takes about 3 years after an at-fault accident for your premiums to start decreasing. During this time it’s important to maintain a clean driving record. Multiple accidents will keep rates high for even longer.

 

Accident Statistics

Newfoundland and Labrador has some of the highest rates of collisions between vehicles and wildlife in Canada. This is due to the large population of moose, caribou, and other animals. On average, there are over 700 moose-vehicle collisions reported in the province every year.

Winter driving conditions also contribute to accident rates in Newfoundland and Labrador. Icy, snowy, and slippery roads account for a significant portion of crashes from November through April. Drivers should be extra cautious during the winter months.

Some of the most common types of collisions include:

 

  • Single vehicle collisions – Running off the road or hitting stationary objects.
  • Rear-end collisions – Usually caused by following too closely.
  • Sideswipe collisions – When two vehicles travelling in the same direction make contact.
  • Head-on collisions – Very serious as the combined speed makes the impact worse.

 

Being aware of these frequent accident types and driving defensively can help reduce your risk. But it’s still important to have proper insurance coverage in case an unavoidable collision occurs.

 

Insurance for Specialty Vehicles

In addition to regular cars, there are other specialty vehicles that require insurance coverage in Newfoundland. This includes classic cars, ATVs (all-terrain vehicles), and snowmobiles.

Insuring classic cars can be more expensive than regular vehicles since they are rare and parts can be difficult to find. Specialty classic car insurance provides agreed value coverage, spared parts coverage, and flexible usage options. Companies like Aviva, Hagerty, and Intact offer this type of coverage.

ATVs and snowmobiles need liability coverage in case an accident occurs. Since they are used off-road, collision and comprehensive are optional. Providers like TD Insurance, Belairdirect, and Westland Insurance offer ATV and snowmobile insurance options. Discounts may apply for club memberships and safety training.

It’s important to check local regulations, talk to an agent, and compare quotes when finding specialty vehicle coverage. Factors like driving history, vehicle use, safety features, and claims experience can impact premiums. Proper insurance helps protect against losses for unique vehicles.

 

Conclusion

In summary, having proper car insurance coverage is essential for all drivers in Newfoundland. Make sure you understand the minimum requirements, additional options, and factors that impact your rates. Shop around with different providers to find the best value. Consider usage-based insurance or bundling policies if available. Follow safe driving practices, maintain a good driving record, and check for discounts to keep your premiums low. With the right preparation and choices, you can get the coverage you need at a price you can afford.

Final tips include: comparing quotes regularly as rates change over time, asking about discounts, maintaining continuous coverage to avoid lapses, taking advantage of online account access to manage your policy, and filing claims promptly and accurately when needed. With the proper coverage, savvy shopping, and safe driving habits, you can have effective car insurance protection in Newfoundland.

Newfoundland and Labrador Auto Insurance​ Questions

The average cost of car insurance in Newfoundland is $1,075 per year, or about $90 per month. Rates can vary widely depending on factors like your driving record, vehicle, coverage limits, and more. Shop around to find the best rate.

Your car insurance rate in Newfoundland depends on several factors like your age, driving experience, vehicle, driving record, insurance company, coverage limits, deductibles, and where you live. Getting quotes from multiple insurers can help find the best rate based on your risk profile.

As a new driver in Newfoundland without any driving experience, expect to pay higher car insurance premiums. Average annual rates for new drivers can range from $2,500 – $4,000 depending on age, gender, location, vehicle and other factors. Taking a driver training course can help lower costs.

The cheapest car insurance company in Newfoundland can vary depending on your personal risk profile. On average, some of the most affordable insurers include PC Financial, Belair Direct, and Coachman Insurance. Make sure to get quotes from several companies to find the best rate for your situation.

Yes, having a minimum level of car insurance coverage is required by law in Newfoundland. All vehicles on public roads must carry at least $200,000 third party liability, $200,000 direct compensation property damage, and $200,000 of uninsured/unidentified motorist coverage. Fines apply for driving uninsured.

As a G2 licensed driver in Newfoundland, expect to pay higher auto insurance premiums than more experienced drivers. Average car insurance costs for G2 drivers range from $3,000 – $5,500 per year. Getting your full G license can save you up to 25% on car insurance.

Common car insurance discounts available in Newfoundland include multi-vehicle, multi-policy, winter tire, alarm system, driver training course, good student, group association, low mileage and more. Ask your insurer what discounts you may qualify for to save money.

Car insurance rates are generally a bit cheaper in St. John’s compared to Mount Pearl. St. John’s tends to have lower risk of accidents and claims frequency. Make sure to compare quotes for your situation as prices can vary between insurers. Location is one factor among many affecting premiums.

The best way to compare quotes for Newfoundland car insurance is to use an online insurance comparison tool. You enter your details once, and it will provide quotes from multiple top insurance providers in just a few minutes. This allows you to easily compare rates side-by-side.

Newfoundland requires all vehicles to carry a minimum of $200,000 third party liability, $200,000 direct compensation property damage (DCPD), and $200,000 of uninsured/unidentified motorist bodily injury and property damage coverage. Higher limits are recommended for better protection.

If you cause an at-fault accident in Newfoundland, your car insurance premiums can increase by 50-75% on average. Rate hikes after accidents may vary depending on severity, insurer, policyholder history and other considerations. Maintaining a clean driving record saves you money.

The company with the best car insurance rates in Newfoundland really depends on your personal situation including your vehicle, driving record, location, coverage amounts and other risk factors. On average, some top affordable options include PC Financial, Belair Direct and Coachman Insurance.

Insuring a new car in Newfoundland costs around $2,400 per year on average. However, premiums can range much higher or lower depending on the make, model, value of the vehicle and coverage amounts carried. Shop quotes from multiple top insurers to find the best new car insurance rate.

The penalties for driving uninsured in Newfoundland include fines up to $5,000 for a first offence, up to $10,000 for subsequent offences, and potential license suspension. Your vehicle registration may also be suspended until proper insurance is obtained. Always maintain continuous coverage.

Yes, you can get short-term or temporary Newfoundland car insurance policies ranging from 1 day to 6 months in length. This allows you to have coverage for situations like borrowing or renting a vehicle or driving a newly purchased car while you shop for annual insurance.

In Newfoundland, 16 year old drivers can expect to pay very high car insurance premiums due to lack of experience. Average annual quotes range from $5,000 – $8,000 for teen drivers depending on location. Taking driver training can help lower costs somewhat.

The most effective ways to lower car insurance premiums in Newfoundland include maintaining a clean driving record, choosing higher deductibles, asking about discounts, comparing quotes regularly, limiting coverage to essential needs, improving your credit score and taking advanced driver training courses.

The cheapest months for car insurance in Newfoundland are typically March, July and December when fewer drivers are on the roads. Renewing or starting a policy during these low risk months can yield some savings on your auto insurance costs. Avoid renewal in high traffic months if possible.

 

Why You Need Car Insurance in Newfoundland

Car insurance is mandatory by law in Newfoundland and Labrador. Under the province’s Highway Traffic Act, all vehicles driven on public roads must carry a minimum amount of liability coverage. Failure to have active auto insurance can result in fines, license suspension, and impoundment of your vehicle.

Beyond being legally required, car insurance provides important financial protection in the event of an accident. It covers damage you may cause to other people’s vehicles and property, as well as injuries to other drivers, passengers, and pedestrians. Without coverage, you would be personally responsible for these costs, which could amount to hundreds of thousands of dollars. Insurance helps shield you from potentially devastating expenses.

Insurance also covers damage to your own vehicle from collisions, theft, vandalism, natural disasters, and more. Repairing or replacing a car can be very costly. Insurance significantly reduces your own out-of-pocket repair bills and provides peace of mind that you’ll be covered in the case of an unexpected incident on the road.

 

Average Cost of Car Insurance

Car insurance rates in Newfoundland and Labrador are among the highest in Canada. On average, Newfoundland drivers pay approximately $1,168 per year for car insurance. This works out to about $97 per month.

Here’s a look at average car insurance premiums in Newfoundland based on age:

 

– Drivers under 25 years old: $2,526 per year ($211 per month)

– Drivers 25-34 years old: $1,392 per year ($116 per month)

– Drivers 35-44 years old: $1,104 per year ($92 per month)

– Drivers 45-54 years old: $912 per year ($76 per month)

– Drivers 55-64 years old: $864 per year ($72 per month)

– Drivers over 65 years old: $792 per year ($66 per month)

 

As you can see, younger drivers pay significantly more for car insurance than other age groups. Rates start coming down around age 25 and continue to decrease incrementally until age 65.

Compared to other provinces, car insurance rates in Newfoundland and Labrador are among the highest. Only Ontario and British Columbia have higher average premiums. Here’s how Newfoundland stacks up against other provinces:

 

– Ontario: $1,316 per year ($110 per month)

– British Columbia: $1,832 per year ($153 per month)

– Alberta: $1,316 per year ($110 per month)

– Newfoundland and Labrador: $1,168 per year ($97 per month)

– Nova Scotia: $922 per year ($74 per month)

– New Brunswick: $868 per year ($72 per month)

– Prince Edward Island: $611 per year ($51 per month)

– Saskatchewan: $985 per year ($82 per month)

– Manitoba: $1,082 per year ($90 per month)

– Quebec: $793 per year ($66 per month)

 

Factors That Affect Your Premiums

Your car insurance premium is calculated based on several factors. The main ones that affect your rate are:

 

Age

Drivers under 25, especially teenage drivers, pay the highest premiums. Insurance companies consider younger drivers more likely to take risks and get into accidents. As you get older and gain more experience behind the wheel, insurers see you as less of a risk and your premiums will decrease. However, premiums start to rise again after age 65.

 

Gender

Statistically, men get into more serious accidents than women. As a result, young male drivers typically pay more for insurance than young female drivers.

 

Driving Record

Your driving history is a major factor in determining your premium. Getting tickets for speeding, running red lights, reckless driving and being involved in at-fault accidents will increase your premium substantially. However, a clean record with no violations will earn you discounts.

 

Location

Where you live plays a big role in your rate. If you live in a dense urban area where the risk of accidents and theft is higher, you will pay more. Drivers in rural areas generally pay less.

 

Minimum Coverage Requirements

All drivers in Newfoundland must carry a minimum amount of car insurance coverage in order to legally operate a vehicle. The mandatory minimums are set by the province and required by law. Failing to carry proper insurance can lead to fines, loss of license, and impoundment of your vehicle.

The minimum liability coverage required in Newfoundland is:

 

  • $200,000 for third-party liability
  • $200,000 for direct compensation property damage
  • $200,000 for uninsured/unidentified motorist coverage

 

Liability coverage protects you if you cause damage, injury, or death to another driver, their passengers, or their property in an at-fault accident. It covers the costs of repairing or replacing the other party’s vehicle and pays for medical bills and lost income for injured parties up to the coverage limit.

Direct compensation property damage covers damage to your own vehicle if you are not at fault in an accident. It allows you to make a claim through your own insurer rather than trying to collect from the at-fault driver.

Uninsured/unidentified motorist coverage protects you if you are in an accident caused by a hit-and-run driver or someone without insurance. This coverage pays for your vehicle repairs and medical costs in such situations.

In addition to liability, Newfoundland requires drivers to carry a minimum of $25,000 in accident benefits coverage. This pays for medical care, rehabilitation, loss of income, and funeral costs for you and your family if injured in an accident, regardless of fault.

 

Additional Coverage Options

In addition to the minimum coverage required by law, there are other optional coverage types you may want to consider adding to your policy:

 

Collision Coverage

Collision coverage pays to repair or replace your vehicle if it’s damaged in an accident with another car or object, regardless of who is at fault. This coverage protects you from financial loss if your car is totalled or sustains significant damage. Without it, you’d have to pay those costs out of pocket.

 

Comprehensive Coverage

Comprehensive coverage helps pay for vehicle damage from non-collision-related incidents like theft, vandalism, fire, hail, flood, striking an animal, or falling objects. It provides protection beyond collision coverage for things that could happen to your car outside of an accident.

 

Rental Reimbursement

Rental reimbursement coverage can help pay for a rental car while your vehicle is being repaired after an accident. It reimburses you for transportation expenses up to a daily limit. This keeps you mobile while your car is in the shop.

Carefully review each option with your insurer or agent. Adding more coverage will increase your premium, but may be worth it for the peace of mind and financial protection.

 

How Insurance Companies Calculate Your Rate

Insurance companies use sophisticated risk assessment models to calculate premiums based on a variety of factors. The biggest determinants are:

 

Driving Record

Your driving history has a major impact on your rate. Expect to pay higher premiums if you have multiple speeding tickets, at-fault accidents, license suspensions or a DUI on your record. Clean records generally get the best rates.

 

Credit History

Insurers have found a correlation between credit scores and the likelihood of filing a claim. Poor credit will drive your rates up, while good credit can lower your premiums.

 

Coverage Usage

The amount of insurance you buy also affects your rate. Higher limits for liability, collision and comprehensive coverage mean higher premiums. Reduce your coverage to lower your costs.

 

Vehicle

Insurers classify vehicles into different “rate classes” based on repair costs, accident rates, theft rates and other factors. Expect higher premiums for luxury cars and sports cars. New and expensive vehicle models also tend to have higher rates.

 

Discounts

Most companies offer discounts that can lower your premiums. Look for savings if you’re a student, took a defensive driving course, have multiple policies with the same provider, have anti-theft devices installed or are insuring a low-mileage vehicle. Ask your insurer what discounts are available.

 

How to Get the Best Rate

Getting the best car insurance rate in Newfoundland requires some effort on your part. Here are some tips to help you save:

 

Shop Around

Get quotes from multiple providers. Rates can vary widely between insurance companies, so check with at least 3-4 to find the best deal.

 

Maintain Good Driving Record

Drivers with clean records save the most on car insurance. Avoid accidents, traffic violations and drunk driving. Take a defensive driving course – insurers may provide a discount.

 

Adjust Coverage

Raise your deductibles and drop collision/comprehensive coverage on older vehicles. Remove extras you may not need. But don’t skimp on liability.

Comparing quotes and policies takes time, but the savings are worthwhile. With some smart moves, you can secure the lowest possible auto insurance rate.

 

Major Car Insurance Providers in Newfoundland

There are several major insurance providers that offer car insurance in Newfoundland. Here are some of the top options to consider:

 

TD Insurance

TD Insurance, powered by TD Bank, is one of the largest insurance providers in Canada. They offer a range of coverage options and discounts for Newfoundland drivers. TD Insurance has over 60 locations across Atlantic Canada to serve customers.

 

PC Financial Insurance

President’s Choice Financial, also known as PC Financial, provides affordable coverage options from coast to coast. PC Financial offers usage-based insurance plans and discounts for members. They have an easy online quoting and claims process.

 

Westland Insurance

Westland Insurance is one of Canada’s leading property and casualty insurers. They offer car insurance across Newfoundland with options for savings and budget-friendly payment plans. Westland Insurance has strong financial backing and exceptional claims service.

 

Wedgwood Insurance

Wedgwood Insurance provides personalized coverage options for residents and businesses in Newfoundland. They are based in St. John’s and have over 50 years of experience serving the province. Wedgwood represents over 20 top-rated insurance companies.

 

Anthony Insurance

Anthony Insurance is one of the largest independent brokers in Atlantic Canada. They offer car insurance from national and regional providers with flexible payment options. Anthony Insurance has locations across Newfoundland to serve local communities.

 

Filing a Claim

If you get into an accident, it’s important to know what to do and what to expect when filing an insurance claim in Newfoundland. Here are some key steps:

 

Report the Accident

Notify the police right away if anyone is injured, there is significant damage, or the other driver leaves the scene. The police report will be important for your claim. You’ll also need to call your insurance provider as soon as possible to start your claim.

 

Work with the Adjuster

A claims adjuster will be assigned to your case. They will investigate the accident details, assess damages, and determine fault. Cooperate fully by providing them any evidence like photos of the accident scene, police reports, and medical documentation if you were injured.

 

Get Your Vehicle Appraised

Your adjuster will arrange an appraisal to evaluate the cost of repairs for your vehicle. You can get a separate estimate yourself from a trusted body shop.

 

Receive a Settlement Offer

Once your adjuster has all the necessary information, they will present you with a settlement offer. Negotiate if you feel it is too low before accepting.

 

Get Your Vehicle Repaired

Take your vehicle to an authorized repair shop once you accept the settlement. The shop will handle coordinating payment with the insurance company.

The claims process can take weeks or months depending on factors like claim complexity and delays getting police reports. Stay persistent and proactive throughout the process to get the best resolution.

 

Laws and Regulations

Insurance laws and regulations in Newfoundland and Labrador are governed by the province’s Department of Service NL. All drivers are required to carry a minimum level of auto insurance in order to operate a vehicle legally. The minimum liability coverage required by law is $200,000 for bodily injury or death to one person, $200,000 total for bodily injury or death to two or more people, and $200,000 for damage to property.

Recent changes to auto insurance laws include an increase in the minimum required third party liability coverage, which went up from $200,000 to $500,000 in 2015. This change helps ensure victims of collisions are adequately compensated.

Enforcement of insurance laws is carried out in a few ways. Police can request proof of valid insurance during a traffic stop. Drivers caught without proper coverage may face fines up to $5,000 for a first offense. Their vehicle registration and license plates may also be suspended until proper insurance is obtained. Additionally, Service NL and the Royal Newfoundland Constabulary conduct periodic spot checks around the province to verify drivers have proper documentation.

Overall, staying up-to-date on insurance requirements and maintaining continuous coverage is crucial for all drivers in Newfoundland and Labrador. Proper insurance not only meets legal obligations, but also provides critical protection in the event of an accident.

 

High Risk Drivers

Some drivers are considered high risk by insurance companies, which means they will pay higher premiums. This includes young drivers, drivers with DUI convictions, and those with past accidents.

 

Young Drivers

In Newfoundland and Labrador, drivers under 25 years old are considered high risk. This is because statistically young drivers are more likely to get into accidents, file claims, and commit driving infractions. As a result, teens and young adults pay much higher premiums.

On average, drivers under 25 in NL pay $236 a month for car insurance. This is nearly double the provincial average. Rates don’t start to go down until about age 25, assuming the driver has a clean record.

 

DUI Convictions

A DUI conviction will also result in much higher car insurance premiums in Newfoundland and Labrador. Some insurers may refuse to provide any coverage at all after a DUI. On average, rates go up by $408 a month after a first-offense DUI.

It takes about 3 years for rates to start decreasing again after a DUI conviction. Maintaining a clean record is important. Additional DUIs will spike rates even higher.

 

At-Fault Accidents

Drivers who cause accidents are also labeled high risk. Even a single at-fault accident can increase your car insurance premiums substantially. Rates can go up by hundreds of dollars a month.

It takes about 3 years after an at-fault accident for your premiums to start decreasing. During this time it’s important to maintain a clean driving record. Multiple accidents will keep rates high for even longer.

 

Accident Statistics

Newfoundland and Labrador has some of the highest rates of collisions between vehicles and wildlife in Canada. This is due to the large population of moose, caribou, and other animals. On average, there are over 700 moose-vehicle collisions reported in the province every year.

Winter driving conditions also contribute to accident rates in Newfoundland and Labrador. Icy, snowy, and slippery roads account for a significant portion of crashes from November through April. Drivers should be extra cautious during the winter months.

Some of the most common types of collisions include:

 

  • Single vehicle collisions – Running off the road or hitting stationary objects.
  • Rear-end collisions – Usually caused by following too closely.
  • Sideswipe collisions – When two vehicles travelling in the same direction make contact.
  • Head-on collisions – Very serious as the combined speed makes the impact worse.

 

Being aware of these frequent accident types and driving defensively can help reduce your risk. But it’s still important to have proper insurance coverage in case an unavoidable collision occurs.

 

Insurance for Specialty Vehicles

In addition to regular cars, there are other specialty vehicles that require insurance coverage in Newfoundland. This includes classic cars, ATVs (all-terrain vehicles), and snowmobiles.

Insuring classic cars can be more expensive than regular vehicles since they are rare and parts can be difficult to find. Specialty classic car insurance provides agreed value coverage, spared parts coverage, and flexible usage options. Companies like Aviva, Hagerty, and Intact offer this type of coverage.

ATVs and snowmobiles need liability coverage in case an accident occurs. Since they are used off-road, collision and comprehensive are optional. Providers like TD Insurance, Belairdirect, and Westland Insurance offer ATV and snowmobile insurance options. Discounts may apply for club memberships and safety training.

It’s important to check local regulations, talk to an agent, and compare quotes when finding specialty vehicle coverage. Factors like driving history, vehicle use, safety features, and claims experience can impact premiums. Proper insurance helps protect against losses for unique vehicles.

 

Conclusion

In summary, having proper car insurance coverage is essential for all drivers in Newfoundland. Make sure you understand the minimum requirements, additional options, and factors that impact your rates. Shop around with different providers to find the best value. Consider usage-based insurance or bundling policies if available. Follow safe driving practices, maintain a good driving record, and check for discounts to keep your premiums low. With the right preparation and choices, you can get the coverage you need at a price you can afford.

Final tips include: comparing quotes regularly as rates change over time, asking about discounts, maintaining continuous coverage to avoid lapses, taking advantage of online account access to manage your policy, and filing claims promptly and accurately when needed. With the proper coverage, savvy shopping, and safe driving habits, you can have effective car insurance protection in Newfoundland.

Newfoundland and Labrador Auto Insurance​ Questions

The average cost of car insurance in Newfoundland is $1,075 per year, or about $90 per month. Rates can vary widely depending on factors like your driving record, vehicle, coverage limits, and more. Shop around to find the best rate.

Your car insurance rate in Newfoundland depends on several factors like your age, driving experience, vehicle, driving record, insurance company, coverage limits, deductibles, and where you live. Getting quotes from multiple insurers can help find the best rate based on your risk profile.

As a new driver in Newfoundland without any driving experience, expect to pay higher car insurance premiums. Average annual rates for new drivers can range from $2,500 – $4,000 depending on age, gender, location, vehicle and other factors. Taking a driver training course can help lower costs.

The cheapest car insurance company in Newfoundland can vary depending on your personal risk profile. On average, some of the most affordable insurers include PC Financial, Belair Direct, and Coachman Insurance. Make sure to get quotes from several companies to find the best rate for your situation.

Yes, having a minimum level of car insurance coverage is required by law in Newfoundland. All vehicles on public roads must carry at least $200,000 third party liability, $200,000 direct compensation property damage, and $200,000 of uninsured/unidentified motorist coverage. Fines apply for driving uninsured.

As a G2 licensed driver in Newfoundland, expect to pay higher auto insurance premiums than more experienced drivers. Average car insurance costs for G2 drivers range from $3,000 – $5,500 per year. Getting your full G license can save you up to 25% on car insurance.

Common car insurance discounts available in Newfoundland include multi-vehicle, multi-policy, winter tire, alarm system, driver training course, good student, group association, low mileage and more. Ask your insurer what discounts you may qualify for to save money.

Car insurance rates are generally a bit cheaper in St. John’s compared to Mount Pearl. St. John’s tends to have lower risk of accidents and claims frequency. Make sure to compare quotes for your situation as prices can vary between insurers. Location is one factor among many affecting premiums.

The best way to compare quotes for Newfoundland car insurance is to use an online insurance comparison tool. You enter your details once, and it will provide quotes from multiple top insurance providers in just a few minutes. This allows you to easily compare rates side-by-side.

Newfoundland requires all vehicles to carry a minimum of $200,000 third party liability, $200,000 direct compensation property damage (DCPD), and $200,000 of uninsured/unidentified motorist bodily injury and property damage coverage. Higher limits are recommended for better protection.

If you cause an at-fault accident in Newfoundland, your car insurance premiums can increase by 50-75% on average. Rate hikes after accidents may vary depending on severity, insurer, policyholder history and other considerations. Maintaining a clean driving record saves you money.

The company with the best car insurance rates in Newfoundland really depends on your personal situation including your vehicle, driving record, location, coverage amounts and other risk factors. On average, some top affordable options include PC Financial, Belair Direct and Coachman Insurance.

Insuring a new car in Newfoundland costs around $2,400 per year on average. However, premiums can range much higher or lower depending on the make, model, value of the vehicle and coverage amounts carried. Shop quotes from multiple top insurers to find the best new car insurance rate.

The penalties for driving uninsured in Newfoundland include fines up to $5,000 for a first offence, up to $10,000 for subsequent offences, and potential license suspension. Your vehicle registration may also be suspended until proper insurance is obtained. Always maintain continuous coverage.

Yes, you can get short-term or temporary Newfoundland car insurance policies ranging from 1 day to 6 months in length. This allows you to have coverage for situations like borrowing or renting a vehicle or driving a newly purchased car while you shop for annual insurance.

In Newfoundland, 16 year old drivers can expect to pay very high car insurance premiums due to lack of experience. Average annual quotes range from $5,000 – $8,000 for teen drivers depending on location. Taking driver training can help lower costs somewhat.

The most effective ways to lower car insurance premiums in Newfoundland include maintaining a clean driving record, choosing higher deductibles, asking about discounts, comparing quotes regularly, limiting coverage to essential needs, improving your credit score and taking advanced driver training courses.

The cheapest months for car insurance in Newfoundland are typically March, July and December when fewer drivers are on the roads. Renewing or starting a policy during these low risk months can yield some savings on your auto insurance costs. Avoid renewal in high traffic months if possible.

 

Why You Need Car Insurance in Newfoundland

Car insurance is mandatory by law in Newfoundland and Labrador. Under the province’s Highway Traffic Act, all vehicles driven on public roads must carry a minimum amount of liability coverage. Failure to have active auto insurance can result in fines, license suspension, and impoundment of your vehicle.

Beyond being legally required, car insurance provides important financial protection in the event of an accident. It covers damage you may cause to other people’s vehicles and property, as well as injuries to other drivers, passengers, and pedestrians. Without coverage, you would be personally responsible for these costs, which could amount to hundreds of thousands of dollars. Insurance helps shield you from potentially devastating expenses.

Insurance also covers damage to your own vehicle from collisions, theft, vandalism, natural disasters, and more. Repairing or replacing a car can be very costly. Insurance significantly reduces your own out-of-pocket repair bills and provides peace of mind that you’ll be covered in the case of an unexpected incident on the road.

 

Average Cost of Car Insurance

Car insurance rates in Newfoundland and Labrador are among the highest in Canada. On average, Newfoundland drivers pay approximately $1,168 per year for car insurance. This works out to about $97 per month.

Here’s a look at average car insurance premiums in Newfoundland based on age:

 

– Drivers under 25 years old: $2,526 per year ($211 per month)

– Drivers 25-34 years old: $1,392 per year ($116 per month)

– Drivers 35-44 years old: $1,104 per year ($92 per month)

– Drivers 45-54 years old: $912 per year ($76 per month)

– Drivers 55-64 years old: $864 per year ($72 per month)

– Drivers over 65 years old: $792 per year ($66 per month)

 

As you can see, younger drivers pay significantly more for car insurance than other age groups. Rates start coming down around age 25 and continue to decrease incrementally until age 65.

Compared to other provinces, car insurance rates in Newfoundland and Labrador are among the highest. Only Ontario and British Columbia have higher average premiums. Here’s how Newfoundland stacks up against other provinces:

 

– Ontario: $1,316 per year ($110 per month)

– British Columbia: $1,832 per year ($153 per month)

– Alberta: $1,316 per year ($110 per month)

– Newfoundland and Labrador: $1,168 per year ($97 per month)

– Nova Scotia: $922 per year ($74 per month)

– New Brunswick: $868 per year ($72 per month)

– Prince Edward Island: $611 per year ($51 per month)

– Saskatchewan: $985 per year ($82 per month)

– Manitoba: $1,082 per year ($90 per month)

– Quebec: $793 per year ($66 per month)

 

Factors That Affect Your Premiums

Your car insurance premium is calculated based on several factors. The main ones that affect your rate are:

 

Age

Drivers under 25, especially teenage drivers, pay the highest premiums. Insurance companies consider younger drivers more likely to take risks and get into accidents. As you get older and gain more experience behind the wheel, insurers see you as less of a risk and your premiums will decrease. However, premiums start to rise again after age 65.

 

Gender

Statistically, men get into more serious accidents than women. As a result, young male drivers typically pay more for insurance than young female drivers.

 

Driving Record

Your driving history is a major factor in determining your premium. Getting tickets for speeding, running red lights, reckless driving and being involved in at-fault accidents will increase your premium substantially. However, a clean record with no violations will earn you discounts.

 

Location

Where you live plays a big role in your rate. If you live in a dense urban area where the risk of accidents and theft is higher, you will pay more. Drivers in rural areas generally pay less.

 

Minimum Coverage Requirements

All drivers in Newfoundland must carry a minimum amount of car insurance coverage in order to legally operate a vehicle. The mandatory minimums are set by the province and required by law. Failing to carry proper insurance can lead to fines, loss of license, and impoundment of your vehicle.

The minimum liability coverage required in Newfoundland is:

 

  • $200,000 for third-party liability
  • $200,000 for direct compensation property damage
  • $200,000 for uninsured/unidentified motorist coverage

 

Liability coverage protects you if you cause damage, injury, or death to another driver, their passengers, or their property in an at-fault accident. It covers the costs of repairing or replacing the other party’s vehicle and pays for medical bills and lost income for injured parties up to the coverage limit.

Direct compensation property damage covers damage to your own vehicle if you are not at fault in an accident. It allows you to make a claim through your own insurer rather than trying to collect from the at-fault driver.

Uninsured/unidentified motorist coverage protects you if you are in an accident caused by a hit-and-run driver or someone without insurance. This coverage pays for your vehicle repairs and medical costs in such situations.

In addition to liability, Newfoundland requires drivers to carry a minimum of $25,000 in accident benefits coverage. This pays for medical care, rehabilitation, loss of income, and funeral costs for you and your family if injured in an accident, regardless of fault.

 

Additional Coverage Options

In addition to the minimum coverage required by law, there are other optional coverage types you may want to consider adding to your policy:

 

Collision Coverage

Collision coverage pays to repair or replace your vehicle if it’s damaged in an accident with another car or object, regardless of who is at fault. This coverage protects you from financial loss if your car is totalled or sustains significant damage. Without it, you’d have to pay those costs out of pocket.

 

Comprehensive Coverage

Comprehensive coverage helps pay for vehicle damage from non-collision-related incidents like theft, vandalism, fire, hail, flood, striking an animal, or falling objects. It provides protection beyond collision coverage for things that could happen to your car outside of an accident.

 

Rental Reimbursement

Rental reimbursement coverage can help pay for a rental car while your vehicle is being repaired after an accident. It reimburses you for transportation expenses up to a daily limit. This keeps you mobile while your car is in the shop.

Carefully review each option with your insurer or agent. Adding more coverage will increase your premium, but may be worth it for the peace of mind and financial protection.

 

How Insurance Companies Calculate Your Rate

Insurance companies use sophisticated risk assessment models to calculate premiums based on a variety of factors. The biggest determinants are:

 

Driving Record

Your driving history has a major impact on your rate. Expect to pay higher premiums if you have multiple speeding tickets, at-fault accidents, license suspensions or a DUI on your record. Clean records generally get the best rates.

 

Credit History

Insurers have found a correlation between credit scores and the likelihood of filing a claim. Poor credit will drive your rates up, while good credit can lower your premiums.

 

Coverage Usage

The amount of insurance you buy also affects your rate. Higher limits for liability, collision and comprehensive coverage mean higher premiums. Reduce your coverage to lower your costs.

 

Vehicle

Insurers classify vehicles into different “rate classes” based on repair costs, accident rates, theft rates and other factors. Expect higher premiums for luxury cars and sports cars. New and expensive vehicle models also tend to have higher rates.

 

Discounts

Most companies offer discounts that can lower your premiums. Look for savings if you’re a student, took a defensive driving course, have multiple policies with the same provider, have anti-theft devices installed or are insuring a low-mileage vehicle. Ask your insurer what discounts are available.

 

How to Get the Best Rate

Getting the best car insurance rate in Newfoundland requires some effort on your part. Here are some tips to help you save:

 

Shop Around

Get quotes from multiple providers. Rates can vary widely between insurance companies, so check with at least 3-4 to find the best deal.

 

Maintain Good Driving Record

Drivers with clean records save the most on car insurance. Avoid accidents, traffic violations and drunk driving. Take a defensive driving course – insurers may provide a discount.

 

Adjust Coverage

Raise your deductibles and drop collision/comprehensive coverage on older vehicles. Remove extras you may not need. But don’t skimp on liability.

Comparing quotes and policies takes time, but the savings are worthwhile. With some smart moves, you can secure the lowest possible auto insurance rate.

 

Major Car Insurance Providers in Newfoundland

There are several major insurance providers that offer car insurance in Newfoundland. Here are some of the top options to consider:

 

TD Insurance

TD Insurance, powered by TD Bank, is one of the largest insurance providers in Canada. They offer a range of coverage options and discounts for Newfoundland drivers. TD Insurance has over 60 locations across Atlantic Canada to serve customers.

 

PC Financial Insurance

President’s Choice Financial, also known as PC Financial, provides affordable coverage options from coast to coast. PC Financial offers usage-based insurance plans and discounts for members. They have an easy online quoting and claims process.

 

Westland Insurance

Westland Insurance is one of Canada’s leading property and casualty insurers. They offer car insurance across Newfoundland with options for savings and budget-friendly payment plans. Westland Insurance has strong financial backing and exceptional claims service.

 

Wedgwood Insurance

Wedgwood Insurance provides personalized coverage options for residents and businesses in Newfoundland. They are based in St. John’s and have over 50 years of experience serving the province. Wedgwood represents over 20 top-rated insurance companies.

 

Anthony Insurance

Anthony Insurance is one of the largest independent brokers in Atlantic Canada. They offer car insurance from national and regional providers with flexible payment options. Anthony Insurance has locations across Newfoundland to serve local communities.

 

Filing a Claim

If you get into an accident, it’s important to know what to do and what to expect when filing an insurance claim in Newfoundland. Here are some key steps:

 

Report the Accident

Notify the police right away if anyone is injured, there is significant damage, or the other driver leaves the scene. The police report will be important for your claim. You’ll also need to call your insurance provider as soon as possible to start your claim.

 

Work with the Adjuster

A claims adjuster will be assigned to your case. They will investigate the accident details, assess damages, and determine fault. Cooperate fully by providing them any evidence like photos of the accident scene, police reports, and medical documentation if you were injured.

 

Get Your Vehicle Appraised

Your adjuster will arrange an appraisal to evaluate the cost of repairs for your vehicle. You can get a separate estimate yourself from a trusted body shop.

 

Receive a Settlement Offer

Once your adjuster has all the necessary information, they will present you with a settlement offer. Negotiate if you feel it is too low before accepting.

 

Get Your Vehicle Repaired

Take your vehicle to an authorized repair shop once you accept the settlement. The shop will handle coordinating payment with the insurance company.

The claims process can take weeks or months depending on factors like claim complexity and delays getting police reports. Stay persistent and proactive throughout the process to get the best resolution.

 

Laws and Regulations

Insurance laws and regulations in Newfoundland and Labrador are governed by the province’s Department of Service NL. All drivers are required to carry a minimum level of auto insurance in order to operate a vehicle legally. The minimum liability coverage required by law is $200,000 for bodily injury or death to one person, $200,000 total for bodily injury or death to two or more people, and $200,000 for damage to property.

Recent changes to auto insurance laws include an increase in the minimum required third party liability coverage, which went up from $200,000 to $500,000 in 2015. This change helps ensure victims of collisions are adequately compensated.

Enforcement of insurance laws is carried out in a few ways. Police can request proof of valid insurance during a traffic stop. Drivers caught without proper coverage may face fines up to $5,000 for a first offense. Their vehicle registration and license plates may also be suspended until proper insurance is obtained. Additionally, Service NL and the Royal Newfoundland Constabulary conduct periodic spot checks around the province to verify drivers have proper documentation.

Overall, staying up-to-date on insurance requirements and maintaining continuous coverage is crucial for all drivers in Newfoundland and Labrador. Proper insurance not only meets legal obligations, but also provides critical protection in the event of an accident.

 

High Risk Drivers

Some drivers are considered high risk by insurance companies, which means they will pay higher premiums. This includes young drivers, drivers with DUI convictions, and those with past accidents.

 

Young Drivers

In Newfoundland and Labrador, drivers under 25 years old are considered high risk. This is because statistically young drivers are more likely to get into accidents, file claims, and commit driving infractions. As a result, teens and young adults pay much higher premiums.

On average, drivers under 25 in NL pay $236 a month for car insurance. This is nearly double the provincial average. Rates don’t start to go down until about age 25, assuming the driver has a clean record.

 

DUI Convictions

A DUI conviction will also result in much higher car insurance premiums in Newfoundland and Labrador. Some insurers may refuse to provide any coverage at all after a DUI. On average, rates go up by $408 a month after a first-offense DUI.

It takes about 3 years for rates to start decreasing again after a DUI conviction. Maintaining a clean record is important. Additional DUIs will spike rates even higher.

 

At-Fault Accidents

Drivers who cause accidents are also labeled high risk. Even a single at-fault accident can increase your car insurance premiums substantially. Rates can go up by hundreds of dollars a month.

It takes about 3 years after an at-fault accident for your premiums to start decreasing. During this time it’s important to maintain a clean driving record. Multiple accidents will keep rates high for even longer.

 

Accident Statistics

Newfoundland and Labrador has some of the highest rates of collisions between vehicles and wildlife in Canada. This is due to the large population of moose, caribou, and other animals. On average, there are over 700 moose-vehicle collisions reported in the province every year.

Winter driving conditions also contribute to accident rates in Newfoundland and Labrador. Icy, snowy, and slippery roads account for a significant portion of crashes from November through April. Drivers should be extra cautious during the winter months.

Some of the most common types of collisions include:

 

  • Single vehicle collisions – Running off the road or hitting stationary objects.
  • Rear-end collisions – Usually caused by following too closely.
  • Sideswipe collisions – When two vehicles travelling in the same direction make contact.
  • Head-on collisions – Very serious as the combined speed makes the impact worse.

 

Being aware of these frequent accident types and driving defensively can help reduce your risk. But it’s still important to have proper insurance coverage in case an unavoidable collision occurs.

 

Insurance for Specialty Vehicles

In addition to regular cars, there are other specialty vehicles that require insurance coverage in Newfoundland. This includes classic cars, ATVs (all-terrain vehicles), and snowmobiles.

Insuring classic cars can be more expensive than regular vehicles since they are rare and parts can be difficult to find. Specialty classic car insurance provides agreed value coverage, spared parts coverage, and flexible usage options. Companies like Aviva, Hagerty, and Intact offer this type of coverage.

ATVs and snowmobiles need liability coverage in case an accident occurs. Since they are used off-road, collision and comprehensive are optional. Providers like TD Insurance, Belairdirect, and Westland Insurance offer ATV and snowmobile insurance options. Discounts may apply for club memberships and safety training.

It’s important to check local regulations, talk to an agent, and compare quotes when finding specialty vehicle coverage. Factors like driving history, vehicle use, safety features, and claims experience can impact premiums. Proper insurance helps protect against losses for unique vehicles.

 

Conclusion

In summary, having proper car insurance coverage is essential for all drivers in Newfoundland. Make sure you understand the minimum requirements, additional options, and factors that impact your rates. Shop around with different providers to find the best value. Consider usage-based insurance or bundling policies if available. Follow safe driving practices, maintain a good driving record, and check for discounts to keep your premiums low. With the right preparation and choices, you can get the coverage you need at a price you can afford.

Final tips include: comparing quotes regularly as rates change over time, asking about discounts, maintaining continuous coverage to avoid lapses, taking advantage of online account access to manage your policy, and filing claims promptly and accurately when needed. With the proper coverage, savvy shopping, and safe driving habits, you can have effective car insurance protection in Newfoundland.

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Newfoundland and Labrador Auto Insurance​ Questions

The average cost of car insurance in Newfoundland is $1,075 per year, or about $90 per month. Rates can vary widely depending on factors like your driving record, vehicle, coverage limits, and more. Shop around to find the best rate.

Your car insurance rate in Newfoundland depends on several factors like your age, driving experience, vehicle, driving record, insurance company, coverage limits, deductibles, and where you live. Getting quotes from multiple insurers can help find the best rate based on your risk profile.

As a new driver in Newfoundland without any driving experience, expect to pay higher car insurance premiums. Average annual rates for new drivers can range from $2,500 – $4,000 depending on age, gender, location, vehicle and other factors. Taking a driver training course can help lower costs.

The cheapest car insurance company in Newfoundland can vary depending on your personal risk profile. On average, some of the most affordable insurers include PC Financial, Belair Direct, and Coachman Insurance. Make sure to get quotes from several companies to find the best rate for your situation.

Yes, having a minimum level of car insurance coverage is required by law in Newfoundland. All vehicles on public roads must carry at least $200,000 third party liability, $200,000 direct compensation property damage, and $200,000 of uninsured/unidentified motorist coverage. Fines apply for driving uninsured.

As a G2 licensed driver in Newfoundland, expect to pay higher auto insurance premiums than more experienced drivers. Average car insurance costs for G2 drivers range from $3,000 – $5,500 per year. Getting your full G license can save you up to 25% on car insurance.

Common car insurance discounts available in Newfoundland include multi-vehicle, multi-policy, winter tire, alarm system, driver training course, good student, group association, low mileage and more. Ask your insurer what discounts you may qualify for to save money.

Car insurance rates are generally a bit cheaper in St. John’s compared to Mount Pearl. St. John’s tends to have lower risk of accidents and claims frequency. Make sure to compare quotes for your situation as prices can vary between insurers. Location is one factor among many affecting premiums.

The best way to compare quotes for Newfoundland car insurance is to use an online insurance comparison tool. You enter your details once, and it will provide quotes from multiple top insurance providers in just a few minutes. This allows you to easily compare rates side-by-side.

Newfoundland requires all vehicles to carry a minimum of $200,000 third party liability, $200,000 direct compensation property damage (DCPD), and $200,000 of uninsured/unidentified motorist bodily injury and property damage coverage. Higher limits are recommended for better protection.

If you cause an at-fault accident in Newfoundland, your car insurance premiums can increase by 50-75% on average. Rate hikes after accidents may vary depending on severity, insurer, policyholder history and other considerations. Maintaining a clean driving record saves you money.

The company with the best car insurance rates in Newfoundland really depends on your personal situation including your vehicle, driving record, location, coverage amounts and other risk factors. On average, some top affordable options include PC Financial, Belair Direct and Coachman Insurance.

Insuring a new car in Newfoundland costs around $2,400 per year on average. However, premiums can range much higher or lower depending on the make, model, value of the vehicle and coverage amounts carried. Shop quotes from multiple top insurers to find the best new car insurance rate.

The penalties for driving uninsured in Newfoundland include fines up to $5,000 for a first offence, up to $10,000 for subsequent offences, and potential license suspension. Your vehicle registration may also be suspended until proper insurance is obtained. Always maintain continuous coverage.

Yes, you can get short-term or temporary Newfoundland car insurance policies ranging from 1 day to 6 months in length. This allows you to have coverage for situations like borrowing or renting a vehicle or driving a newly purchased car while you shop for annual insurance.

In Newfoundland, 16 year old drivers can expect to pay very high car insurance premiums due to lack of experience. Average annual quotes range from $5,000 – $8,000 for teen drivers depending on location. Taking driver training can help lower costs somewhat.

The most effective ways to lower car insurance premiums in Newfoundland include maintaining a clean driving record, choosing higher deductibles, asking about discounts, comparing quotes regularly, limiting coverage to essential needs, improving your credit score and taking advanced driver training courses.

The cheapest months for car insurance in Newfoundland are typically March, July and December when fewer drivers are on the roads. Renewing or starting a policy during these low risk months can yield some savings on your auto insurance costs. Avoid renewal in high traffic months if possible.

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