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Prince Edward Island Car Insurance

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Car insurance rates in Prince Edward Island are among the lowest in Canada, but finding the right policy to fit your needs and budget can still be a challenge. This comprehensive guide provides Prince Edward Island drivers with everything they need to know about car insurance in the province.

We’ll discuss factors that affect insurance costs, minimum coverage requirements, additional options to consider, tips for getting cheaper rates, top providers in the region, average premium estimates, filing claims, choosing the right policy, alternative insurance choices, provincial laws and regulations, and when you may need to reassess your coverage.

Whether you’re a new PEI driver who just bought their first car or a seasoned owner wanting to optimize your existing plan, read on to make sure you have the best car insurance coverage for your situation.

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Why Get Car Insurance in PEI?

Getting car insurance is mandatory by law in Prince Edward Island. All vehicle owners and drivers must carry at minimum third-party liability insurance. Not having proper insurance coverage can lead to serious consequences such as fines, inability to renew your driver’s license or registration, or even your vehicle being impounded.

Having car insurance is also extremely important financially as it protects you in the event of an accident. Without coverage, you could be liable for the full cost of repairs for your vehicle as well as any damage you cause to other vehicles or property. This could end up costing you thousands of dollars out of pocket. With insurance, most repair costs are covered so you avoid this huge financial burden.

Car insurance also covers injuries to yourself or your passengers should an accident occur. Medical costs, especially in the wake of a serious collision, can easily spiral out of control. Having coverage means these costs are taken care of by your insurer. Without it, you risk paying enormous amounts for hospital bills and treatment.

In short, carrying proper auto insurance in PEI is not only the law, but also protects you financially in the case of an accident. It gives you peace of mind in knowing an incident won’t result in crippling expenses and liabilities that could negatively impact your finances for years to come.

 

Factors That Affect Car Insurance Costs in PEI

When getting car insurance in Prince Edward Island, there are a number of factors that can impact how much you pay in premiums. Here are some of the main ones:

 

Your Age

Insurers view younger drivers, especially those under 25, as higher risk and will charge more. As you get older and gain more experience behind the wheel, premiums will decrease. Rates start going up again once you reach 70.

 

Driving Record

Drivers with accidents, tickets or other infractions on their record will pay higher premiums. Those with a clean driving history will pay less. The fewer infractions you have, the lower your rates will be.

 

Car Make/Model/Year

The type of vehicle you drive impacts premiums. Sports cars, high-end luxury vehicles and performance cars typically cost more to insure. Newer vehicles also tend to have higher rates. Older cars will have lower premiums.

 

Coverage Types/Limits

The more coverage you buy and the higher your limits, the more you’ll pay. Opting for just basic mandatory coverage with lower limits can reduce costs. Getting add-ons or increased third-party liability limits will raise rates.

 

Location

Insurance rates can vary quite a bit depending on what part of PEI you live in. More urban areas tend to have higher premiums, while rural regions are usually cheaper.

 

Discounts

There are many discounts available that can help lower your car insurance costs, such as bundling multiple policies with one insurer, maintaining good grades in school, completing a safe driving course, having certain safety features on your vehicle, and more. The more discounts you qualify for, the more you can save.

 

Minimum Car Insurance Requirements in PEI

All drivers in Prince Edward Island are required by law to carry a minimum level of car insurance coverage. There are three main components to PEI’s mandatory minimum auto insurance requirements:

 

Liability Insurance

Liability insurance covers damage and injuries that you cause to other people and/or their property in an at-fault accident. PEI requires drivers to carry at least $200,000 in third-party liability coverage. This includes:

 

  • $200,000 for damage/injuries caused to any one person in an accident
  • $200,000 total for all injuries and property damage combined

 

Accident Benefits

Accident benefits cover costs related to injuries sustained by you or your passengers, regardless of fault. PEI requires a minimum of $100,000 in medical and rehabilitation benefits. This helps pay for treatment, prescriptions, assistive devices, income replacement, and more if you are hurt in an accident.

 

Uninsured Auto Coverage

Uninsured auto coverage protects you in the event you are hit by a driver with no insurance or not enough coverage to pay for your losses. PEI requires a minimum of $200,000 in coverage. This helps pay for injuries and damage if the at-fault driver cannot.

 

Additional Coverage Options in PEI

In addition to mandatory minimum coverage, there are optional add-ons that can provide extra protection for PEI drivers:

 

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 fault. This protects you from having to pay costly repair bills out-of-pocket if an at-fault driver doesn’t have enough liability coverage.

 

Comprehensive Coverage

Comprehensive coverage protects against non-collision damage such as fire, theft, vandalism, hail, flood, and animal collisions. This coverage gives you peace of mind that your vehicle investment is protected even when accidents don’t occur.

 

Rental Reimbursement

Rental reimbursement coverage pays for a rental car if your vehicle is being repaired after an accident. This add-on prevents you from being stuck without transportation during the repair process.

 

Roadside Assistance

Roadside assistance provides on-demand help with lockouts, battery jumps, fuel delivery, flat tire changes, and towing. It’s a convenient option that can get you back on the road quickly if you break down.

Choosing the right additional coverages can give PEI drivers enhanced protection for their specific needs and driving habits.

 

How to Get Cheaper Car Insurance in PEI

Car insurance in PEI can get expensive, especially if you’re a high-risk driver. Fortunately, there are several ways to save money on your auto insurance premiums in the province:

 

Shop Around

Don’t just renew your current policy every year – take the time to shop around and compare quotes from different insurers. Rates can vary dramatically between companies, so checking with at least 3-4 providers could save you hundreds per year.

 

Raise Your Deductibles

Opting for higher deductibles (e.g. $1,000 instead of $500) will lower your premiums substantially. Just make sure you have enough savings to cover the out-of-pocket costs if you do file a claim.

 

Bundle Your Policies

Many insurers will give you a discount of up to 15% for bundling your auto and home insurance together. This incentivizes customers to buy multiple policies from the same provider.

 

Maintain Good Credit

Insurers view customers with poor credit as more high-risk. Maintaining a solid credit score can significantly reduce your car insurance rates in PEI.

 

Take Advantage of Discounts

Ask your provider about discounts for defensive driving courses, low mileage, auto/home bundles, anti-theft devices, and more. Taking safety courses and keeping mileage low are easy ways to secure discounts.

 

Major Car Insurance Providers in PEI

There are several major insurance providers that offer car insurance policies in Prince Edward Island. Here are overviews of some of the top companies:

 

TD Insurance

TD Insurance is one of Canada’s largest insurance providers, offering a range of coverage options for drivers in PEI. They have an extensive claims network and offer discounts for bundling home and auto insurance. TD Insurance provides standard coverage as well as options like rental vehicle coverage and accident forgiveness.

 

PC Insurance

PC Insurance operates nationally and has competitive rates in PEI. They make getting an online quote fast and easy through their website. PC Insurance offers standard auto coverage as well as options for collision, comprehensive, and loss of use. They also provide discounts for safe driving records.

 

Surex

Surex is a brokerage with access to over 20 top Canadian insurance companies. Their online quoting platform makes it simple to compare multiple quotes side-by-side. Surex offers standard required coverage plus additional options. They have knowledgeable brokers who can help you select the right policy.

 

The Co-operators

The Co-operators is a Canadian-owned co-operative offering home, life, travel, and auto insurance. They provide standard required auto coverage in PEI as well as options for collision, comprehensive, rental vehicle, and more. The Co-operators is known for quality claims service.

 

Wawanesa

Wawanesa is a 100% Canadian company providing auto insurance in PEI for over 60 years. They offer standard required coverage plus collision, comprehensive, and additional liability options. Wawanesa promotes bundled home and auto discounts. They have 24/7 claims service in PEI.

 

Average Car Insurance Rates in PEI

The average car insurance premium in PEI is around $850 per year. However, rates can vary significantly based on your individual risk profile. Some key factors that impact your rates include:

 

By Age Group

Younger drivers tend to pay higher premiums due to lack of driving experience. Rates start decreasing around the age of 25. Here are the average rates by age group:

 

Age Group

Average Premium 

16-19

$2,500

20-24

$1,800

25-34

$1,200

35-44

$850

45-54

$750

55-64

$650

65+

$500

 

By Car Type

Sports cars, luxury vehicles, and performance cars have higher insurance rates. Family sedans and minivans tend to have lower premiums. Here are the average rates by car type:

 

Car Type

Average Premium 

Luxury/Sports Cars

$1,500

SUVs and Trucks

$1,000

Sedans

$800

Minivans

$700

 

By Driving and Claims History

Drivers with accidents, claims, tickets or DUIs on record tend to pay higher rates. Those with a clean record get lower premiums. Here are sample rates based on record:

 

Record

Average Premium

Clean Record

$700

1 At-Fault Accident

$900

2+ At-Fault Accidents

$1,200

Major Conviction

$1,500

DUI

$2,000+

 

By Location

Where you live impacts premiums as well. Urban areas like Charlottetown tend to have higher rates due to more cars, pedestrians and potential for accidents. Here are sample rates by location:

 

Location

Average Premium 

Charlottetown

$900

Summerside

$850

Rural PEI

$800

 

Filing a Car Insurance Claim in PEI

If you are involved in a car accident in PEI, there’s a process you’ll need to follow to file an insurance claim and get your vehicle repaired or receive compensation. Here are the key steps:

 

  1. Report the Accident – If there are any injuries, call 911 immediately. You’ll also want to report all accidents to the police, even minor fender benders. Get a copy of the police report for your records.
  1. Notify Your Insurer – Call your insurance company or broker as soon as possible after the accident. Provide details like the time, location, injuries, damage and other vehicles/drivers involved.
  1. Get a Claim Number – Your insurer will open a claim file and provide you a claim number. Make sure to have this handy for all communications about your claim.
  1. Gather Evidence – Take photos of the damage, injuries and accident scene. Get contact details for witnesses. Save medical reports and bills. All of this supports your claim.
  1. Get Repairs Underway – Choose an approved repair shop and get an estimate. Your insurer may send an adjuster to inspect the damage first. Authorized repairs can begin once approved.
  1. Negotiate Your Settlement – Work with your adjuster on settling medical expenses, car repairs and other accident-related costs. Provide documentation to justify amounts.
  1. Receive Your Payment – Once a settlement is reached, your insurer will issue payment for repairs and reimbursements owed under your policy. Expect payment within 1-2 weeks.
  1. Follow Up on Any Delays – If repairs or claim payouts are delayed, call your adjuster for status updates. Be persistent and keep meticulous notes.
  1. Consider Mediation – If you dispute your settlement, mediation through the Insurance Bureau of Canada may help resolve it. Or you can consult a lawyer.

 

The claims process can take anywhere from a few weeks to a few months, depending on factors like claim complexity and back-and-forth negotiations. Be prepared for some frustration, but stay focused on getting the optimal settlement you’re entitled to under your policy.

 

Choosing the Right Car Insurance Policy in PEI

Choosing the right car insurance policy in PEI is crucial to getting the coverage you need at a price you can afford. Here are some tips for selecting the best policy for your situation:

Consider Your Coverage Needs

Think about how you use your vehicle and what level of protection you want. At a minimum, you need liability and accident benefits coverage, but you may also want collision, comprehensive, and additional accident benefits.

Set a Realistic Budget

Shop around and get quotes from multiple insurers. Compare premiums and coverage to find a policy that fits your budget without skimping on necessary protection.

Review Company Ratings and Reviews

Check insurer financial strength ratings and customer satisfaction scores. Find a reputable company known for fair claims handling and customer service.

By weighing your coverage requirements, budget, and provider options, you can find the optimal PEI car insurance policy for your situation.

 

Alternative Car Insurance Options in PEI

In addition to traditional car insurance providers, there are some alternative options for coverage in PEI that may be cheaper for some drivers:

 

Usage-Based Car Insurance

Usage-based or pay-per-km insurance charges you based on how much you actually drive. This can be a great option for low mileage drivers in PEI as your premiums will be lower if you don’t drive often. With usage-based insurance, a telematics device is installed in your car to track mileage.

 

Non-Traditional Car Insurance Providers

Some new, non-traditional insurance providers like Belairdirect and Sonnet offer online-only insurance which can sometimes translate to lower premiums through lower overhead costs. These insurers provide policies entirely online without brick-and-mortar locations.

 

High Deductible Car Insurance Plans

Choosing a higher deductible on your car insurance policy is one way to lower your premiums. While you take on more out-of-pocket risk with a high deductible plan, it can make your monthly payments more affordable. It’s important to ensure you have savings to cover the deductible amount in case you need to make a claim.

 

Car Insurance Laws and Regulations in PEI

Prince Edward Island has several important laws and regulations related to car insurance that drivers should be aware of.

Some recent changes to auto insurance regulations in PEI include:

 

  • As of 2018, drivers are no longer required to have proof of insurance in their vehicle at all times. Insurance details can now be provided electronically if pulled over.
  • Since 2020, insurance companies are prohibited from using credit scores to determine car insurance premiums.
  • Also in 2020, regulations were introduced to ban the practice of postal code discrimination in auto insurance rates.

 

The Insurance Bureau of Canada’s Atlantic office oversees the auto insurance industry in PEI. They work with local providers on issues like fraud prevention, risk management, consumer education, and regulatory compliance.

For help resolving a dispute with your insurance company in PEI, you can contact the Insurance Bureau of PEI’s Consumer Information Center. They provide information on policy coverages and will assist with filing an official complaint if needed. Unresolved disputes can be brought to the PEI Superintendent of Insurance.

It’s important for PEI drivers to stay up to date on auto insurance laws and know where to turn for support when dealing with insurance issues. Being informed on your rights and responsibilities helps ensure you have the coverage you need at a fair price.

 

When to Reassess Your Car Insurance in PEI

Your car insurance needs can change over time, so it’s important to periodically re-evaluate your policy to make sure you have the right coverage. Here are some common life events that signal it may be time to reassess your car insurance in PEI:

 

Changes in Marital Status

If you get married, divorced or become widowed, your car insurance rates can be affected. Marital status is taken into account by insurers when calculating premiums. For example, married couples often qualify for a discount compared to single policyholders. Notify your provider if your marital status changes so they can update your policy appropriately.

 

Change of Address

Moving to a new home, especially in a different city or province, can impact your auto insurance rates. Insurance premiums vary by location, so make sure to inform your provider of your new address. You may be eligible for lower rates if you move to an area with lower accident and crime rates.

 

Getting a New Car

Buying a new or used car is a great time to re-evaluate your coverage. Your premium will likely change when you insure a different make, model or year of vehicle. Review your policy limits and deductibles when insuring a new car to ensure you have adequate coverage.

 

Change in Driving Habits

Major changes in how much or how far you drive can also affect your ideal insurance policy. For instance, if you switch jobs and have a shorter daily commute, you may qualify for a low mileage discount. Or if you retire and no longer drive every day, you could reduce your coverage to save money. Keep your insurance provider informed of significant driving habit changes.

By reassessing your policy as your life circumstances change, you can ensure you always have the right car insurance coverage in PEI at the best available rate.

 

Conclusion

In summary, car insurance is a mandatory requirement for all vehicle owners and drivers in Prince Edward Island. While rates are fairly affordable compared to other provinces, there are still many ways PEI drivers can get cheaper coverage.

The main factors that affect your premiums are your age, driving history, vehicle type, mileage, and choice of deductible. Comparing quotes from multiple providers and bundling your car with home insurance can lead to significant savings.

Make sure you have at least the minimum required liability coverage. Consider adding collision, comprehensive, and other optional protections if they fit your needs and budget. Work with an experienced local broker who can explain all your policy options.

Review your car insurance annually and if you move or change vehicles. Shop around for better deals on occasion, being a long term customer with one insurer doesn’t necessarily guarantee the lowest rate. With some smart shopping, PEI drivers can find high quality coverage at a great value.

PEI Auto Insurance Questions

The average cost of car insurance in PEI is $816 per year as of 2020. This makes PEI one of the more affordable provinces for car insurance in Canada. When shopping for coverage, drivers in PEI should expect to pay between $700-900 per year depending on their driving record, vehicle, coverage limits and other factors.

PEI has relatively low car insurance rates compared to most other provinces in Canada. As of 2020, PEI ranks as the 5th cheapest province for car insurance with an average premium of $816 per year. The most expensive provinces are Ontario ($1,458) and British Columbia ($1,832). The cheapest provinces are Quebec ($642) and Manitoba ($875).

The main factors that impact car insurance premiums in PEI include your:

 

– Driving and claims history

– Vehicle make, model and year

– Coverage types and limits

– Age and driving experience

– Where you live and park your vehicle

– Discounts for which you qualify

 

Getting quotes from multiple insurers can help you find the best rate based on these variables. Maintaining a clean driving record is also key to lowering premiums.

The minimum liability coverage required in PEI is:

 

– $200,000 for third party liability to cover injuries/death to others

– $500 deductible for collision and comprehensive coverage

 

However, it’s recommended to purchase higher limits such as $1 million or $2 million to properly protect your assets. Higher limits do cost more but provide greater protection.

In addition to basic third party liability coverage, popular options in PEI include:

 

– Collision – Covers damage to your vehicle in an at-fault accident

– Comprehensive – Covers damage from theft, vandalism, weather, animals

– Underinsured motorist protection – Extra coverage if the at-fault driver’s policy limit is too low

– Loss of income – Replaces lost wages if you can’t work due to an accident

– Rental reimbursement – Covers costs of a rental while your vehicle is repaired

 

Bundling these with your basic policy provides more complete protection.

Top ways to save money on car insurance in PEI include:

 

– Shop rates from multiple insurers

– Ask about discounts you may qualify for

– Raise deductibles to lower premiums

– Consider usage-based insurance if you drive less than 9,000 km/year

– Ask your broker for any retiree, professional or alumni discounts

– Bundle home and auto policies with same insurer

– Maintain a clean driving record

Common car insurance discounts offered by insurers in PEI include:

 

– Multi-vehicle discount

– Multi-policy discount

– Winter tire discount

– Good driver discount

– Low mileage discount

– Automatic payment discount

– New vehicle discount

– Anti-theft device discount

Your driving and claims record directly impacts how much you pay for car insurance in PEI. A clean record with no accidents or violations leads to the lowest rates. Even a single at-fault crash or traffic ticket can raise your premiums by 30% or more. High-risk drivers with multiple incidents pay the highest premiums.

To establish and maintain a good driving record in PEI:

 

– Don’t cause any accidents, even minor fender benders

– Avoid getting traffic tickets for speeding, distracted driving etc.

– Take an approved defensive driving course for insurance discount

– Check your free driving record annually

– Correct any errors on your record immediately

 

Driving safely and defensively is key to keeping a clean record over time.

 

PEI uses a grid rating system to calculate premiums based on your driving record and years licensed. The grid assigns points for chargeable incidents then uses this rating along with other factors to determine your premium. Higher points lead to higher costs. The system provides incentives to maintain a clean record over time.

In PEI, most infractions stay on your driving record for 6 years from the conviction date including:

 

– At-fault accidents

– Major convictions like impaired driving

– Minor convictions like speeding tickets

 

However, high risk convictions for criminal offenses stay on your record for longer. Getting tickets or charges removed early is very difficult in PEI.

In PEI, you must complete an accident report if the incident involves:

 

– Injuries or deaths

– Total vehicle damage over $1,000

– Hit and run or uninsured drivers

 

Even if damages fall under $1,000, it’s still recommended to report accidents to document what happened for insurance purposes.

 

Yes, drivers in PEI with a G2 license can obtain their own car insurance policy. Minimum coverage limits and premiums apply. However, most insurers offer a discount for experienced G2 drivers over the age of 25 who take an approved driver training course. Maintaining a clean record is critical for affordable premiums with a graduated license.

To get an accurate PEI car insurance quote, you’ll need to provide basic details like:

 

– Your personal info including name, address and date of birth

– All licensed drivers who will operate the vehicle

– Vehicle make, model, year and VIN

– Your driving and claims history

– Types and amounts of coverage desired

 

Getting quotes from multiple insurers ensures you find the best rate. Rates can vary significantly between companies.

The top car insurance providers in PEI include:

 

– PC Insurance

– TD Insurance

– Co-operators

– Johnson Insurance

– AMA Insurance

– Wawanesa

– Aviva

 

But the cheapest and best insurer really depends on your personal profile. Comparing quotes provides the best rate.

Yes, car insurance is mandatory in PEI. All registered vehicle owners must carry a minimum of third party liability coverage, accident benefits and direct compensation property damage. Failing to insure your vehicle risks fines, license suspension and having your car impounded or registration revoked.

In PEI, driving any length of time without any insurance is considered a serious offense. If caught, police can immediately impound your vehicle onsite until proof of valid coverage is provided. Driving uninsured also leads to fines over $500 plus 3 demerit points and possible license suspension.

If you cause an accident in PEI with no insurance, you are 100% liable for damages and injuries to others. This includes covering their vehicle repairs, medical bills, lost income plus any legal or court fees. With no coverage, these costs quickly add up to tens or hundreds of thousands of dollars leaving you financially devastated.

Yes, it’s possible to have someone else such as a spouse, family member or friend insure your vehicle in PEI, even if the vehicle is not registered in their name. However, the policyholder must be the principal driver of the car or have an insurable interest like a financial stake. The insurer may request proof of the insurable interest.

 

No, it is illegal to register a vehicle in PEI without proof of valid insurance. When registering at a PEI Access site, you must provide your new policy documents or existing pink insurance slip. PEI also participates in Canada’s national insurance database where insurers report active policies.

The best coverage options for elderly drivers over 65 in PEI include:

 

– $2 million third party liability limits

– Collision and comprehensive with low deductibles

– Accident forgiveness protection

– Roadside assistance coverage

– Rental car reimbursement

– Discounts for mature drivers

 

Comparing rates from several insurers provides the best value.

 

Why Get Car Insurance in PEI?

Getting car insurance is mandatory by law in Prince Edward Island. All vehicle owners and drivers must carry at minimum third-party liability insurance. Not having proper insurance coverage can lead to serious consequences such as fines, inability to renew your driver’s license or registration, or even your vehicle being impounded.

Having car insurance is also extremely important financially as it protects you in the event of an accident. Without coverage, you could be liable for the full cost of repairs for your vehicle as well as any damage you cause to other vehicles or property. This could end up costing you thousands of dollars out of pocket. With insurance, most repair costs are covered so you avoid this huge financial burden.

Car insurance also covers injuries to yourself or your passengers should an accident occur. Medical costs, especially in the wake of a serious collision, can easily spiral out of control. Having coverage means these costs are taken care of by your insurer. Without it, you risk paying enormous amounts for hospital bills and treatment.

In short, carrying proper auto insurance in PEI is not only the law, but also protects you financially in the case of an accident. It gives you peace of mind in knowing an incident won’t result in crippling expenses and liabilities that could negatively impact your finances for years to come.

 

Factors That Affect Car Insurance Costs in PEI

When getting car insurance in Prince Edward Island, there are a number of factors that can impact how much you pay in premiums. Here are some of the main ones:

 

Your Age

Insurers view younger drivers, especially those under 25, as higher risk and will charge more. As you get older and gain more experience behind the wheel, premiums will decrease. Rates start going up again once you reach 70.

 

Driving Record

Drivers with accidents, tickets or other infractions on their record will pay higher premiums. Those with a clean driving history will pay less. The fewer infractions you have, the lower your rates will be.

 

Car Make/Model/Year

The type of vehicle you drive impacts premiums. Sports cars, high-end luxury vehicles and performance cars typically cost more to insure. Newer vehicles also tend to have higher rates. Older cars will have lower premiums.

 

Coverage Types/Limits

The more coverage you buy and the higher your limits, the more you’ll pay. Opting for just basic mandatory coverage with lower limits can reduce costs. Getting add-ons or increased third-party liability limits will raise rates.

 

Location

Insurance rates can vary quite a bit depending on what part of PEI you live in. More urban areas tend to have higher premiums, while rural regions are usually cheaper.

 

Discounts

There are many discounts available that can help lower your car insurance costs, such as bundling multiple policies with one insurer, maintaining good grades in school, completing a safe driving course, having certain safety features on your vehicle, and more. The more discounts you qualify for, the more you can save.

 

Minimum Car Insurance Requirements in PEI

All drivers in Prince Edward Island are required by law to carry a minimum level of car insurance coverage. There are three main components to PEI’s mandatory minimum auto insurance requirements:

 

Liability Insurance

Liability insurance covers damage and injuries that you cause to other people and/or their property in an at-fault accident. PEI requires drivers to carry at least $200,000 in third-party liability coverage. This includes:

 

  • $200,000 for damage/injuries caused to any one person in an accident
  • $200,000 total for all injuries and property damage combined

 

Accident Benefits

Accident benefits cover costs related to injuries sustained by you or your passengers, regardless of fault. PEI requires a minimum of $100,000 in medical and rehabilitation benefits. This helps pay for treatment, prescriptions, assistive devices, income replacement, and more if you are hurt in an accident.

 

Uninsured Auto Coverage

Uninsured auto coverage protects you in the event you are hit by a driver with no insurance or not enough coverage to pay for your losses. PEI requires a minimum of $200,000 in coverage. This helps pay for injuries and damage if the at-fault driver cannot.

 

Additional Coverage Options in PEI

In addition to mandatory minimum coverage, there are optional add-ons that can provide extra protection for PEI drivers:

 

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 fault. This protects you from having to pay costly repair bills out-of-pocket if an at-fault driver doesn’t have enough liability coverage.

 

Comprehensive Coverage

Comprehensive coverage protects against non-collision damage such as fire, theft, vandalism, hail, flood, and animal collisions. This coverage gives you peace of mind that your vehicle investment is protected even when accidents don’t occur.

 

Rental Reimbursement

Rental reimbursement coverage pays for a rental car if your vehicle is being repaired after an accident. This add-on prevents you from being stuck without transportation during the repair process.

 

Roadside Assistance

Roadside assistance provides on-demand help with lockouts, battery jumps, fuel delivery, flat tire changes, and towing. It’s a convenient option that can get you back on the road quickly if you break down.

Choosing the right additional coverages can give PEI drivers enhanced protection for their specific needs and driving habits.

 

How to Get Cheaper Car Insurance in PEI

Car insurance in PEI can get expensive, especially if you’re a high-risk driver. Fortunately, there are several ways to save money on your auto insurance premiums in the province:

 

Shop Around

Don’t just renew your current policy every year – take the time to shop around and compare quotes from different insurers. Rates can vary dramatically between companies, so checking with at least 3-4 providers could save you hundreds per year.

 

Raise Your Deductibles

Opting for higher deductibles (e.g. $1,000 instead of $500) will lower your premiums substantially. Just make sure you have enough savings to cover the out-of-pocket costs if you do file a claim.

 

Bundle Your Policies

Many insurers will give you a discount of up to 15% for bundling your auto and home insurance together. This incentivizes customers to buy multiple policies from the same provider.

 

Maintain Good Credit

Insurers view customers with poor credit as more high-risk. Maintaining a solid credit score can significantly reduce your car insurance rates in PEI.

 

Take Advantage of Discounts

Ask your provider about discounts for defensive driving courses, low mileage, auto/home bundles, anti-theft devices, and more. Taking safety courses and keeping mileage low are easy ways to secure discounts.

 

Major Car Insurance Providers in PEI

There are several major insurance providers that offer car insurance policies in Prince Edward Island. Here are overviews of some of the top companies:

 

TD Insurance

TD Insurance is one of Canada’s largest insurance providers, offering a range of coverage options for drivers in PEI. They have an extensive claims network and offer discounts for bundling home and auto insurance. TD Insurance provides standard coverage as well as options like rental vehicle coverage and accident forgiveness.

 

PC Insurance

PC Insurance operates nationally and has competitive rates in PEI. They make getting an online quote fast and easy through their website. PC Insurance offers standard auto coverage as well as options for collision, comprehensive, and loss of use. They also provide discounts for safe driving records.

 

Surex

Surex is a brokerage with access to over 20 top Canadian insurance companies. Their online quoting platform makes it simple to compare multiple quotes side-by-side. Surex offers standard required coverage plus additional options. They have knowledgeable brokers who can help you select the right policy.

 

The Co-operators

The Co-operators is a Canadian-owned co-operative offering home, life, travel, and auto insurance. They provide standard required auto coverage in PEI as well as options for collision, comprehensive, rental vehicle, and more. The Co-operators is known for quality claims service.

 

Wawanesa

Wawanesa is a 100% Canadian company providing auto insurance in PEI for over 60 years. They offer standard required coverage plus collision, comprehensive, and additional liability options. Wawanesa promotes bundled home and auto discounts. They have 24/7 claims service in PEI.

 

Average Car Insurance Rates in PEI

The average car insurance premium in PEI is around $850 per year. However, rates can vary significantly based on your individual risk profile. Some key factors that impact your rates include:

 

By Age Group

Younger drivers tend to pay higher premiums due to lack of driving experience. Rates start decreasing around the age of 25. Here are the average rates by age group:

 

Age Group

Average Premium 

16-19

$2,500

20-24

$1,800

25-34

$1,200

35-44

$850

45-54

$750

55-64

$650

65+

$500

 

By Car Type

Sports cars, luxury vehicles, and performance cars have higher insurance rates. Family sedans and minivans tend to have lower premiums. Here are the average rates by car type:

 

Car Type

Average Premium 

Luxury/Sports Cars

$1,500

SUVs and Trucks

$1,000

Sedans

$800

Minivans

$700

 

By Driving and Claims History

Drivers with accidents, claims, tickets or DUIs on record tend to pay higher rates. Those with a clean record get lower premiums. Here are sample rates based on record:

 

Record

Average Premium

Clean Record

$700

1 At-Fault Accident

$900

2+ At-Fault Accidents

$1,200

Major Conviction

$1,500

DUI

$2,000+

 

By Location

Where you live impacts premiums as well. Urban areas like Charlottetown tend to have higher rates due to more cars, pedestrians and potential for accidents. Here are sample rates by location:

 

Location

Average Premium 

Charlottetown

$900

Summerside

$850

Rural PEI

$800

 

Filing a Car Insurance Claim in PEI

If you are involved in a car accident in PEI, there’s a process you’ll need to follow to file an insurance claim and get your vehicle repaired or receive compensation. Here are the key steps:

 

  1. Report the Accident – If there are any injuries, call 911 immediately. You’ll also want to report all accidents to the police, even minor fender benders. Get a copy of the police report for your records.
  1. Notify Your Insurer – Call your insurance company or broker as soon as possible after the accident. Provide details like the time, location, injuries, damage and other vehicles/drivers involved.
  1. Get a Claim Number – Your insurer will open a claim file and provide you a claim number. Make sure to have this handy for all communications about your claim.
  1. Gather Evidence – Take photos of the damage, injuries and accident scene. Get contact details for witnesses. Save medical reports and bills. All of this supports your claim.
  1. Get Repairs Underway – Choose an approved repair shop and get an estimate. Your insurer may send an adjuster to inspect the damage first. Authorized repairs can begin once approved.
  1. Negotiate Your Settlement – Work with your adjuster on settling medical expenses, car repairs and other accident-related costs. Provide documentation to justify amounts.
  1. Receive Your Payment – Once a settlement is reached, your insurer will issue payment for repairs and reimbursements owed under your policy. Expect payment within 1-2 weeks.
  1. Follow Up on Any Delays – If repairs or claim payouts are delayed, call your adjuster for status updates. Be persistent and keep meticulous notes.
  1. Consider Mediation – If you dispute your settlement, mediation through the Insurance Bureau of Canada may help resolve it. Or you can consult a lawyer.

 

The claims process can take anywhere from a few weeks to a few months, depending on factors like claim complexity and back-and-forth negotiations. Be prepared for some frustration, but stay focused on getting the optimal settlement you’re entitled to under your policy.

 

Choosing the Right Car Insurance Policy in PEI

Choosing the right car insurance policy in PEI is crucial to getting the coverage you need at a price you can afford. Here are some tips for selecting the best policy for your situation:

Consider Your Coverage Needs

Think about how you use your vehicle and what level of protection you want. At a minimum, you need liability and accident benefits coverage, but you may also want collision, comprehensive, and additional accident benefits.

Set a Realistic Budget

Shop around and get quotes from multiple insurers. Compare premiums and coverage to find a policy that fits your budget without skimping on necessary protection.

Review Company Ratings and Reviews

Check insurer financial strength ratings and customer satisfaction scores. Find a reputable company known for fair claims handling and customer service.

By weighing your coverage requirements, budget, and provider options, you can find the optimal PEI car insurance policy for your situation.

 

Alternative Car Insurance Options in PEI

In addition to traditional car insurance providers, there are some alternative options for coverage in PEI that may be cheaper for some drivers:

 

Usage-Based Car Insurance

Usage-based or pay-per-km insurance charges you based on how much you actually drive. This can be a great option for low mileage drivers in PEI as your premiums will be lower if you don’t drive often. With usage-based insurance, a telematics device is installed in your car to track mileage.

 

Non-Traditional Car Insurance Providers

Some new, non-traditional insurance providers like Belairdirect and Sonnet offer online-only insurance which can sometimes translate to lower premiums through lower overhead costs. These insurers provide policies entirely online without brick-and-mortar locations.

 

High Deductible Car Insurance Plans

Choosing a higher deductible on your car insurance policy is one way to lower your premiums. While you take on more out-of-pocket risk with a high deductible plan, it can make your monthly payments more affordable. It’s important to ensure you have savings to cover the deductible amount in case you need to make a claim.

 

Car Insurance Laws and Regulations in PEI

Prince Edward Island has several important laws and regulations related to car insurance that drivers should be aware of.

Some recent changes to auto insurance regulations in PEI include:

 

  • As of 2018, drivers are no longer required to have proof of insurance in their vehicle at all times. Insurance details can now be provided electronically if pulled over.
  • Since 2020, insurance companies are prohibited from using credit scores to determine car insurance premiums.
  • Also in 2020, regulations were introduced to ban the practice of postal code discrimination in auto insurance rates.

 

The Insurance Bureau of Canada’s Atlantic office oversees the auto insurance industry in PEI. They work with local providers on issues like fraud prevention, risk management, consumer education, and regulatory compliance.

For help resolving a dispute with your insurance company in PEI, you can contact the Insurance Bureau of PEI’s Consumer Information Center. They provide information on policy coverages and will assist with filing an official complaint if needed. Unresolved disputes can be brought to the PEI Superintendent of Insurance.

It’s important for PEI drivers to stay up to date on auto insurance laws and know where to turn for support when dealing with insurance issues. Being informed on your rights and responsibilities helps ensure you have the coverage you need at a fair price.

 

When to Reassess Your Car Insurance in PEI

Your car insurance needs can change over time, so it’s important to periodically re-evaluate your policy to make sure you have the right coverage. Here are some common life events that signal it may be time to reassess your car insurance in PEI:

 

Changes in Marital Status

If you get married, divorced or become widowed, your car insurance rates can be affected. Marital status is taken into account by insurers when calculating premiums. For example, married couples often qualify for a discount compared to single policyholders. Notify your provider if your marital status changes so they can update your policy appropriately.

 

Change of Address

Moving to a new home, especially in a different city or province, can impact your auto insurance rates. Insurance premiums vary by location, so make sure to inform your provider of your new address. You may be eligible for lower rates if you move to an area with lower accident and crime rates.

 

Getting a New Car

Buying a new or used car is a great time to re-evaluate your coverage. Your premium will likely change when you insure a different make, model or year of vehicle. Review your policy limits and deductibles when insuring a new car to ensure you have adequate coverage.

 

Change in Driving Habits

Major changes in how much or how far you drive can also affect your ideal insurance policy. For instance, if you switch jobs and have a shorter daily commute, you may qualify for a low mileage discount. Or if you retire and no longer drive every day, you could reduce your coverage to save money. Keep your insurance provider informed of significant driving habit changes.

By reassessing your policy as your life circumstances change, you can ensure you always have the right car insurance coverage in PEI at the best available rate.

 

Conclusion

In summary, car insurance is a mandatory requirement for all vehicle owners and drivers in Prince Edward Island. While rates are fairly affordable compared to other provinces, there are still many ways PEI drivers can get cheaper coverage.

The main factors that affect your premiums are your age, driving history, vehicle type, mileage, and choice of deductible. Comparing quotes from multiple providers and bundling your car with home insurance can lead to significant savings.

Make sure you have at least the minimum required liability coverage. Consider adding collision, comprehensive, and other optional protections if they fit your needs and budget. Work with an experienced local broker who can explain all your policy options.

Review your car insurance annually and if you move or change vehicles. Shop around for better deals on occasion, being a long term customer with one insurer doesn’t necessarily guarantee the lowest rate. With some smart shopping, PEI drivers can find high quality coverage at a great value.

PEI Auto Insurance Questions

The average cost of car insurance in PEI is $816 per year as of 2020. This makes PEI one of the more affordable provinces for car insurance in Canada. When shopping for coverage, drivers in PEI should expect to pay between $700-900 per year depending on their driving record, vehicle, coverage limits and other factors.

PEI has relatively low car insurance rates compared to most other provinces in Canada. As of 2020, PEI ranks as the 5th cheapest province for car insurance with an average premium of $816 per year. The most expensive provinces are Ontario ($1,458) and British Columbia ($1,832). The cheapest provinces are Quebec ($642) and Manitoba ($875).

The main factors that impact car insurance premiums in PEI include your:

 

– Driving and claims history

– Vehicle make, model and year

– Coverage types and limits

– Age and driving experience

– Where you live and park your vehicle

– Discounts for which you qualify

 

Getting quotes from multiple insurers can help you find the best rate based on these variables. Maintaining a clean driving record is also key to lowering premiums.

The minimum liability coverage required in PEI is:

 

– $200,000 for third party liability to cover injuries/death to others

– $500 deductible for collision and comprehensive coverage

 

However, it’s recommended to purchase higher limits such as $1 million or $2 million to properly protect your assets. Higher limits do cost more but provide greater protection.

In addition to basic third party liability coverage, popular options in PEI include:

 

– Collision – Covers damage to your vehicle in an at-fault accident

– Comprehensive – Covers damage from theft, vandalism, weather, animals

– Underinsured motorist protection – Extra coverage if the at-fault driver’s policy limit is too low

– Loss of income – Replaces lost wages if you can’t work due to an accident

– Rental reimbursement – Covers costs of a rental while your vehicle is repaired

 

Bundling these with your basic policy provides more complete protection.

Top ways to save money on car insurance in PEI include:

 

– Shop rates from multiple insurers

– Ask about discounts you may qualify for

– Raise deductibles to lower premiums

– Consider usage-based insurance if you drive less than 9,000 km/year

– Ask your broker for any retiree, professional or alumni discounts

– Bundle home and auto policies with same insurer

– Maintain a clean driving record

Common car insurance discounts offered by insurers in PEI include:

 

– Multi-vehicle discount

– Multi-policy discount

– Winter tire discount

– Good driver discount

– Low mileage discount

– Automatic payment discount

– New vehicle discount

– Anti-theft device discount

Your driving and claims record directly impacts how much you pay for car insurance in PEI. A clean record with no accidents or violations leads to the lowest rates. Even a single at-fault crash or traffic ticket can raise your premiums by 30% or more. High-risk drivers with multiple incidents pay the highest premiums.

To establish and maintain a good driving record in PEI:

 

– Don’t cause any accidents, even minor fender benders

– Avoid getting traffic tickets for speeding, distracted driving etc.

– Take an approved defensive driving course for insurance discount

– Check your free driving record annually

– Correct any errors on your record immediately

 

Driving safely and defensively is key to keeping a clean record over time.

 

PEI uses a grid rating system to calculate premiums based on your driving record and years licensed. The grid assigns points for chargeable incidents then uses this rating along with other factors to determine your premium. Higher points lead to higher costs. The system provides incentives to maintain a clean record over time.

In PEI, most infractions stay on your driving record for 6 years from the conviction date including:

 

– At-fault accidents

– Major convictions like impaired driving

– Minor convictions like speeding tickets

 

However, high risk convictions for criminal offenses stay on your record for longer. Getting tickets or charges removed early is very difficult in PEI.

In PEI, you must complete an accident report if the incident involves:

 

– Injuries or deaths

– Total vehicle damage over $1,000

– Hit and run or uninsured drivers

 

Even if damages fall under $1,000, it’s still recommended to report accidents to document what happened for insurance purposes.

 

Yes, drivers in PEI with a G2 license can obtain their own car insurance policy. Minimum coverage limits and premiums apply. However, most insurers offer a discount for experienced G2 drivers over the age of 25 who take an approved driver training course. Maintaining a clean record is critical for affordable premiums with a graduated license.

To get an accurate PEI car insurance quote, you’ll need to provide basic details like:

 

– Your personal info including name, address and date of birth

– All licensed drivers who will operate the vehicle

– Vehicle make, model, year and VIN

– Your driving and claims history

– Types and amounts of coverage desired

 

Getting quotes from multiple insurers ensures you find the best rate. Rates can vary significantly between companies.

The top car insurance providers in PEI include:

 

– PC Insurance

– TD Insurance

– Co-operators

– Johnson Insurance

– AMA Insurance

– Wawanesa

– Aviva

 

But the cheapest and best insurer really depends on your personal profile. Comparing quotes provides the best rate.

Yes, car insurance is mandatory in PEI. All registered vehicle owners must carry a minimum of third party liability coverage, accident benefits and direct compensation property damage. Failing to insure your vehicle risks fines, license suspension and having your car impounded or registration revoked.

In PEI, driving any length of time without any insurance is considered a serious offense. If caught, police can immediately impound your vehicle onsite until proof of valid coverage is provided. Driving uninsured also leads to fines over $500 plus 3 demerit points and possible license suspension.

If you cause an accident in PEI with no insurance, you are 100% liable for damages and injuries to others. This includes covering their vehicle repairs, medical bills, lost income plus any legal or court fees. With no coverage, these costs quickly add up to tens or hundreds of thousands of dollars leaving you financially devastated.

Yes, it’s possible to have someone else such as a spouse, family member or friend insure your vehicle in PEI, even if the vehicle is not registered in their name. However, the policyholder must be the principal driver of the car or have an insurable interest like a financial stake. The insurer may request proof of the insurable interest.

 

No, it is illegal to register a vehicle in PEI without proof of valid insurance. When registering at a PEI Access site, you must provide your new policy documents or existing pink insurance slip. PEI also participates in Canada’s national insurance database where insurers report active policies.

The best coverage options for elderly drivers over 65 in PEI include:

 

– $2 million third party liability limits

– Collision and comprehensive with low deductibles

– Accident forgiveness protection

– Roadside assistance coverage

– Rental car reimbursement

– Discounts for mature drivers

 

Comparing rates from several insurers provides the best value.

 

Why Get Car Insurance in PEI?

Getting car insurance is mandatory by law in Prince Edward Island. All vehicle owners and drivers must carry at minimum third-party liability insurance. Not having proper insurance coverage can lead to serious consequences such as fines, inability to renew your driver’s license or registration, or even your vehicle being impounded.

Having car insurance is also extremely important financially as it protects you in the event of an accident. Without coverage, you could be liable for the full cost of repairs for your vehicle as well as any damage you cause to other vehicles or property. This could end up costing you thousands of dollars out of pocket. With insurance, most repair costs are covered so you avoid this huge financial burden.

Car insurance also covers injuries to yourself or your passengers should an accident occur. Medical costs, especially in the wake of a serious collision, can easily spiral out of control. Having coverage means these costs are taken care of by your insurer. Without it, you risk paying enormous amounts for hospital bills and treatment.

In short, carrying proper auto insurance in PEI is not only the law, but also protects you financially in the case of an accident. It gives you peace of mind in knowing an incident won’t result in crippling expenses and liabilities that could negatively impact your finances for years to come.

 

Factors That Affect Car Insurance Costs in PEI

When getting car insurance in Prince Edward Island, there are a number of factors that can impact how much you pay in premiums. Here are some of the main ones:

 

Your Age

Insurers view younger drivers, especially those under 25, as higher risk and will charge more. As you get older and gain more experience behind the wheel, premiums will decrease. Rates start going up again once you reach 70.

 

Driving Record

Drivers with accidents, tickets or other infractions on their record will pay higher premiums. Those with a clean driving history will pay less. The fewer infractions you have, the lower your rates will be.

 

Car Make/Model/Year

The type of vehicle you drive impacts premiums. Sports cars, high-end luxury vehicles and performance cars typically cost more to insure. Newer vehicles also tend to have higher rates. Older cars will have lower premiums.

 

Coverage Types/Limits

The more coverage you buy and the higher your limits, the more you’ll pay. Opting for just basic mandatory coverage with lower limits can reduce costs. Getting add-ons or increased third-party liability limits will raise rates.

 

Location

Insurance rates can vary quite a bit depending on what part of PEI you live in. More urban areas tend to have higher premiums, while rural regions are usually cheaper.

 

Discounts

There are many discounts available that can help lower your car insurance costs, such as bundling multiple policies with one insurer, maintaining good grades in school, completing a safe driving course, having certain safety features on your vehicle, and more. The more discounts you qualify for, the more you can save.

 

Minimum Car Insurance Requirements in PEI

All drivers in Prince Edward Island are required by law to carry a minimum level of car insurance coverage. There are three main components to PEI’s mandatory minimum auto insurance requirements:

 

Liability Insurance

Liability insurance covers damage and injuries that you cause to other people and/or their property in an at-fault accident. PEI requires drivers to carry at least $200,000 in third-party liability coverage. This includes:

 

  • $200,000 for damage/injuries caused to any one person in an accident
  • $200,000 total for all injuries and property damage combined

 

Accident Benefits

Accident benefits cover costs related to injuries sustained by you or your passengers, regardless of fault. PEI requires a minimum of $100,000 in medical and rehabilitation benefits. This helps pay for treatment, prescriptions, assistive devices, income replacement, and more if you are hurt in an accident.

 

Uninsured Auto Coverage

Uninsured auto coverage protects you in the event you are hit by a driver with no insurance or not enough coverage to pay for your losses. PEI requires a minimum of $200,000 in coverage. This helps pay for injuries and damage if the at-fault driver cannot.

 

Additional Coverage Options in PEI

In addition to mandatory minimum coverage, there are optional add-ons that can provide extra protection for PEI drivers:

 

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 fault. This protects you from having to pay costly repair bills out-of-pocket if an at-fault driver doesn’t have enough liability coverage.

 

Comprehensive Coverage

Comprehensive coverage protects against non-collision damage such as fire, theft, vandalism, hail, flood, and animal collisions. This coverage gives you peace of mind that your vehicle investment is protected even when accidents don’t occur.

 

Rental Reimbursement

Rental reimbursement coverage pays for a rental car if your vehicle is being repaired after an accident. This add-on prevents you from being stuck without transportation during the repair process.

 

Roadside Assistance

Roadside assistance provides on-demand help with lockouts, battery jumps, fuel delivery, flat tire changes, and towing. It’s a convenient option that can get you back on the road quickly if you break down.

Choosing the right additional coverages can give PEI drivers enhanced protection for their specific needs and driving habits.

 

How to Get Cheaper Car Insurance in PEI

Car insurance in PEI can get expensive, especially if you’re a high-risk driver. Fortunately, there are several ways to save money on your auto insurance premiums in the province:

 

Shop Around

Don’t just renew your current policy every year – take the time to shop around and compare quotes from different insurers. Rates can vary dramatically between companies, so checking with at least 3-4 providers could save you hundreds per year.

 

Raise Your Deductibles

Opting for higher deductibles (e.g. $1,000 instead of $500) will lower your premiums substantially. Just make sure you have enough savings to cover the out-of-pocket costs if you do file a claim.

 

Bundle Your Policies

Many insurers will give you a discount of up to 15% for bundling your auto and home insurance together. This incentivizes customers to buy multiple policies from the same provider.

 

Maintain Good Credit

Insurers view customers with poor credit as more high-risk. Maintaining a solid credit score can significantly reduce your car insurance rates in PEI.

 

Take Advantage of Discounts

Ask your provider about discounts for defensive driving courses, low mileage, auto/home bundles, anti-theft devices, and more. Taking safety courses and keeping mileage low are easy ways to secure discounts.

 

Major Car Insurance Providers in PEI

There are several major insurance providers that offer car insurance policies in Prince Edward Island. Here are overviews of some of the top companies:

 

TD Insurance

TD Insurance is one of Canada’s largest insurance providers, offering a range of coverage options for drivers in PEI. They have an extensive claims network and offer discounts for bundling home and auto insurance. TD Insurance provides standard coverage as well as options like rental vehicle coverage and accident forgiveness.

 

PC Insurance

PC Insurance operates nationally and has competitive rates in PEI. They make getting an online quote fast and easy through their website. PC Insurance offers standard auto coverage as well as options for collision, comprehensive, and loss of use. They also provide discounts for safe driving records.

 

Surex

Surex is a brokerage with access to over 20 top Canadian insurance companies. Their online quoting platform makes it simple to compare multiple quotes side-by-side. Surex offers standard required coverage plus additional options. They have knowledgeable brokers who can help you select the right policy.

 

The Co-operators

The Co-operators is a Canadian-owned co-operative offering home, life, travel, and auto insurance. They provide standard required auto coverage in PEI as well as options for collision, comprehensive, rental vehicle, and more. The Co-operators is known for quality claims service.

 

Wawanesa

Wawanesa is a 100% Canadian company providing auto insurance in PEI for over 60 years. They offer standard required coverage plus collision, comprehensive, and additional liability options. Wawanesa promotes bundled home and auto discounts. They have 24/7 claims service in PEI.

 

Average Car Insurance Rates in PEI

The average car insurance premium in PEI is around $850 per year. However, rates can vary significantly based on your individual risk profile. Some key factors that impact your rates include:

 

By Age Group

Younger drivers tend to pay higher premiums due to lack of driving experience. Rates start decreasing around the age of 25. Here are the average rates by age group:

 

Age Group

Average Premium 

16-19

$2,500

20-24

$1,800

25-34

$1,200

35-44

$850

45-54

$750

55-64

$650

65+

$500

 

By Car Type

Sports cars, luxury vehicles, and performance cars have higher insurance rates. Family sedans and minivans tend to have lower premiums. Here are the average rates by car type:

 

Car Type

Average Premium 

Luxury/Sports Cars

$1,500

SUVs and Trucks

$1,000

Sedans

$800

Minivans

$700

 

By Driving and Claims History

Drivers with accidents, claims, tickets or DUIs on record tend to pay higher rates. Those with a clean record get lower premiums. Here are sample rates based on record:

 

Record

Average Premium

Clean Record

$700

1 At-Fault Accident

$900

2+ At-Fault Accidents

$1,200

Major Conviction

$1,500

DUI

$2,000+

 

By Location

Where you live impacts premiums as well. Urban areas like Charlottetown tend to have higher rates due to more cars, pedestrians and potential for accidents. Here are sample rates by location:

 

Location

Average Premium 

Charlottetown

$900

Summerside

$850

Rural PEI

$800

 

Filing a Car Insurance Claim in PEI

If you are involved in a car accident in PEI, there’s a process you’ll need to follow to file an insurance claim and get your vehicle repaired or receive compensation. Here are the key steps:

 

  1. Report the Accident – If there are any injuries, call 911 immediately. You’ll also want to report all accidents to the police, even minor fender benders. Get a copy of the police report for your records.
  1. Notify Your Insurer – Call your insurance company or broker as soon as possible after the accident. Provide details like the time, location, injuries, damage and other vehicles/drivers involved.
  1. Get a Claim Number – Your insurer will open a claim file and provide you a claim number. Make sure to have this handy for all communications about your claim.
  1. Gather Evidence – Take photos of the damage, injuries and accident scene. Get contact details for witnesses. Save medical reports and bills. All of this supports your claim.
  1. Get Repairs Underway – Choose an approved repair shop and get an estimate. Your insurer may send an adjuster to inspect the damage first. Authorized repairs can begin once approved.
  1. Negotiate Your Settlement – Work with your adjuster on settling medical expenses, car repairs and other accident-related costs. Provide documentation to justify amounts.
  1. Receive Your Payment – Once a settlement is reached, your insurer will issue payment for repairs and reimbursements owed under your policy. Expect payment within 1-2 weeks.
  1. Follow Up on Any Delays – If repairs or claim payouts are delayed, call your adjuster for status updates. Be persistent and keep meticulous notes.
  1. Consider Mediation – If you dispute your settlement, mediation through the Insurance Bureau of Canada may help resolve it. Or you can consult a lawyer.

 

The claims process can take anywhere from a few weeks to a few months, depending on factors like claim complexity and back-and-forth negotiations. Be prepared for some frustration, but stay focused on getting the optimal settlement you’re entitled to under your policy.

 

Choosing the Right Car Insurance Policy in PEI

Choosing the right car insurance policy in PEI is crucial to getting the coverage you need at a price you can afford. Here are some tips for selecting the best policy for your situation:

Consider Your Coverage Needs

Think about how you use your vehicle and what level of protection you want. At a minimum, you need liability and accident benefits coverage, but you may also want collision, comprehensive, and additional accident benefits.

Set a Realistic Budget

Shop around and get quotes from multiple insurers. Compare premiums and coverage to find a policy that fits your budget without skimping on necessary protection.

Review Company Ratings and Reviews

Check insurer financial strength ratings and customer satisfaction scores. Find a reputable company known for fair claims handling and customer service.

By weighing your coverage requirements, budget, and provider options, you can find the optimal PEI car insurance policy for your situation.

 

Alternative Car Insurance Options in PEI

In addition to traditional car insurance providers, there are some alternative options for coverage in PEI that may be cheaper for some drivers:

 

Usage-Based Car Insurance

Usage-based or pay-per-km insurance charges you based on how much you actually drive. This can be a great option for low mileage drivers in PEI as your premiums will be lower if you don’t drive often. With usage-based insurance, a telematics device is installed in your car to track mileage.

 

Non-Traditional Car Insurance Providers

Some new, non-traditional insurance providers like Belairdirect and Sonnet offer online-only insurance which can sometimes translate to lower premiums through lower overhead costs. These insurers provide policies entirely online without brick-and-mortar locations.

 

High Deductible Car Insurance Plans

Choosing a higher deductible on your car insurance policy is one way to lower your premiums. While you take on more out-of-pocket risk with a high deductible plan, it can make your monthly payments more affordable. It’s important to ensure you have savings to cover the deductible amount in case you need to make a claim.

 

Car Insurance Laws and Regulations in PEI

Prince Edward Island has several important laws and regulations related to car insurance that drivers should be aware of.

Some recent changes to auto insurance regulations in PEI include:

 

  • As of 2018, drivers are no longer required to have proof of insurance in their vehicle at all times. Insurance details can now be provided electronically if pulled over.
  • Since 2020, insurance companies are prohibited from using credit scores to determine car insurance premiums.
  • Also in 2020, regulations were introduced to ban the practice of postal code discrimination in auto insurance rates.

 

The Insurance Bureau of Canada’s Atlantic office oversees the auto insurance industry in PEI. They work with local providers on issues like fraud prevention, risk management, consumer education, and regulatory compliance.

For help resolving a dispute with your insurance company in PEI, you can contact the Insurance Bureau of PEI’s Consumer Information Center. They provide information on policy coverages and will assist with filing an official complaint if needed. Unresolved disputes can be brought to the PEI Superintendent of Insurance.

It’s important for PEI drivers to stay up to date on auto insurance laws and know where to turn for support when dealing with insurance issues. Being informed on your rights and responsibilities helps ensure you have the coverage you need at a fair price.

 

When to Reassess Your Car Insurance in PEI

Your car insurance needs can change over time, so it’s important to periodically re-evaluate your policy to make sure you have the right coverage. Here are some common life events that signal it may be time to reassess your car insurance in PEI:

 

Changes in Marital Status

If you get married, divorced or become widowed, your car insurance rates can be affected. Marital status is taken into account by insurers when calculating premiums. For example, married couples often qualify for a discount compared to single policyholders. Notify your provider if your marital status changes so they can update your policy appropriately.

 

Change of Address

Moving to a new home, especially in a different city or province, can impact your auto insurance rates. Insurance premiums vary by location, so make sure to inform your provider of your new address. You may be eligible for lower rates if you move to an area with lower accident and crime rates.

 

Getting a New Car

Buying a new or used car is a great time to re-evaluate your coverage. Your premium will likely change when you insure a different make, model or year of vehicle. Review your policy limits and deductibles when insuring a new car to ensure you have adequate coverage.

 

Change in Driving Habits

Major changes in how much or how far you drive can also affect your ideal insurance policy. For instance, if you switch jobs and have a shorter daily commute, you may qualify for a low mileage discount. Or if you retire and no longer drive every day, you could reduce your coverage to save money. Keep your insurance provider informed of significant driving habit changes.

By reassessing your policy as your life circumstances change, you can ensure you always have the right car insurance coverage in PEI at the best available rate.

 

Conclusion

In summary, car insurance is a mandatory requirement for all vehicle owners and drivers in Prince Edward Island. While rates are fairly affordable compared to other provinces, there are still many ways PEI drivers can get cheaper coverage.

The main factors that affect your premiums are your age, driving history, vehicle type, mileage, and choice of deductible. Comparing quotes from multiple providers and bundling your car with home insurance can lead to significant savings.

Make sure you have at least the minimum required liability coverage. Consider adding collision, comprehensive, and other optional protections if they fit your needs and budget. Work with an experienced local broker who can explain all your policy options.

Review your car insurance annually and if you move or change vehicles. Shop around for better deals on occasion, being a long term customer with one insurer doesn’t necessarily guarantee the lowest rate. With some smart shopping, PEI drivers can find high quality coverage at a great value.

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PEI Auto Insurance Questions

The average cost of car insurance in PEI is $816 per year as of 2020. This makes PEI one of the more affordable provinces for car insurance in Canada. When shopping for coverage, drivers in PEI should expect to pay between $700-900 per year depending on their driving record, vehicle, coverage limits and other factors.

PEI has relatively low car insurance rates compared to most other provinces in Canada. As of 2020, PEI ranks as the 5th cheapest province for car insurance with an average premium of $816 per year. The most expensive provinces are Ontario ($1,458) and British Columbia ($1,832). The cheapest provinces are Quebec ($642) and Manitoba ($875).

The main factors that impact car insurance premiums in PEI include your:

 

– Driving and claims history

– Vehicle make, model and year

– Coverage types and limits

– Age and driving experience

– Where you live and park your vehicle

– Discounts for which you qualify

 

Getting quotes from multiple insurers can help you find the best rate based on these variables. Maintaining a clean driving record is also key to lowering premiums.

The minimum liability coverage required in PEI is:

 

– $200,000 for third party liability to cover injuries/death to others

– $500 deductible for collision and comprehensive coverage

 

However, it’s recommended to purchase higher limits such as $1 million or $2 million to properly protect your assets. Higher limits do cost more but provide greater protection.

In addition to basic third party liability coverage, popular options in PEI include:

 

– Collision – Covers damage to your vehicle in an at-fault accident

– Comprehensive – Covers damage from theft, vandalism, weather, animals

– Underinsured motorist protection – Extra coverage if the at-fault driver’s policy limit is too low

– Loss of income – Replaces lost wages if you can’t work due to an accident

– Rental reimbursement – Covers costs of a rental while your vehicle is repaired

 

Bundling these with your basic policy provides more complete protection.

Top ways to save money on car insurance in PEI include:

 

– Shop rates from multiple insurers

– Ask about discounts you may qualify for

– Raise deductibles to lower premiums

– Consider usage-based insurance if you drive less than 9,000 km/year

– Ask your broker for any retiree, professional or alumni discounts

– Bundle home and auto policies with same insurer

– Maintain a clean driving record

Common car insurance discounts offered by insurers in PEI include:

 

– Multi-vehicle discount

– Multi-policy discount

– Winter tire discount

– Good driver discount

– Low mileage discount

– Automatic payment discount

– New vehicle discount

– Anti-theft device discount

Your driving and claims record directly impacts how much you pay for car insurance in PEI. A clean record with no accidents or violations leads to the lowest rates. Even a single at-fault crash or traffic ticket can raise your premiums by 30% or more. High-risk drivers with multiple incidents pay the highest premiums.

To establish and maintain a good driving record in PEI:

 

– Don’t cause any accidents, even minor fender benders

– Avoid getting traffic tickets for speeding, distracted driving etc.

– Take an approved defensive driving course for insurance discount

– Check your free driving record annually

– Correct any errors on your record immediately

 

Driving safely and defensively is key to keeping a clean record over time.

 

PEI uses a grid rating system to calculate premiums based on your driving record and years licensed. The grid assigns points for chargeable incidents then uses this rating along with other factors to determine your premium. Higher points lead to higher costs. The system provides incentives to maintain a clean record over time.

In PEI, most infractions stay on your driving record for 6 years from the conviction date including:

 

– At-fault accidents

– Major convictions like impaired driving

– Minor convictions like speeding tickets

 

However, high risk convictions for criminal offenses stay on your record for longer. Getting tickets or charges removed early is very difficult in PEI.

In PEI, you must complete an accident report if the incident involves:

 

– Injuries or deaths

– Total vehicle damage over $1,000

– Hit and run or uninsured drivers

 

Even if damages fall under $1,000, it’s still recommended to report accidents to document what happened for insurance purposes.

 

Yes, drivers in PEI with a G2 license can obtain their own car insurance policy. Minimum coverage limits and premiums apply. However, most insurers offer a discount for experienced G2 drivers over the age of 25 who take an approved driver training course. Maintaining a clean record is critical for affordable premiums with a graduated license.

To get an accurate PEI car insurance quote, you’ll need to provide basic details like:

 

– Your personal info including name, address and date of birth

– All licensed drivers who will operate the vehicle

– Vehicle make, model, year and VIN

– Your driving and claims history

– Types and amounts of coverage desired

 

Getting quotes from multiple insurers ensures you find the best rate. Rates can vary significantly between companies.

The top car insurance providers in PEI include:

 

– PC Insurance

– TD Insurance

– Co-operators

– Johnson Insurance

– AMA Insurance

– Wawanesa

– Aviva

 

But the cheapest and best insurer really depends on your personal profile. Comparing quotes provides the best rate.

Yes, car insurance is mandatory in PEI. All registered vehicle owners must carry a minimum of third party liability coverage, accident benefits and direct compensation property damage. Failing to insure your vehicle risks fines, license suspension and having your car impounded or registration revoked.

In PEI, driving any length of time without any insurance is considered a serious offense. If caught, police can immediately impound your vehicle onsite until proof of valid coverage is provided. Driving uninsured also leads to fines over $500 plus 3 demerit points and possible license suspension.

If you cause an accident in PEI with no insurance, you are 100% liable for damages and injuries to others. This includes covering their vehicle repairs, medical bills, lost income plus any legal or court fees. With no coverage, these costs quickly add up to tens or hundreds of thousands of dollars leaving you financially devastated.

Yes, it’s possible to have someone else such as a spouse, family member or friend insure your vehicle in PEI, even if the vehicle is not registered in their name. However, the policyholder must be the principal driver of the car or have an insurable interest like a financial stake. The insurer may request proof of the insurable interest.

 

No, it is illegal to register a vehicle in PEI without proof of valid insurance. When registering at a PEI Access site, you must provide your new policy documents or existing pink insurance slip. PEI also participates in Canada’s national insurance database where insurers report active policies.

The best coverage options for elderly drivers over 65 in PEI include:

 

– $2 million third party liability limits

– Collision and comprehensive with low deductibles

– Accident forgiveness protection

– Roadside assistance coverage

– Rental car reimbursement

– Discounts for mature drivers

 

Comparing rates from several insurers provides the best value.

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