Car Insurance Costs In New Brunswick

Car insurance is a legal requirement in New Brunswick, Canada. The average cost of car insurance in the province is lower than the national average, but this can vary depending on individual circumstances. For example, drivers in urban areas such as Fredericton, Moncton, and Saint John will pay more than those in smaller towns or rural areas.

There are four types of mandatory car insurance coverage in New Brunswick: third-party liability coverage, direct compensation coverage, accident benefits coverage, and uninsured automobile coverage. The minimum amount of liability coverage drivers must carry is $200,000.

There are several ways to get cheaper car insurance in New Brunswick, including increasing your deductible, making annual payments, insuring multiple cars together, and bundling multiple insurance policies.

Average insurance rates

The average cost of car insurance in New Brunswick is $867 per year, or approximately $75 per month. However, this can differ by up to $5,000, with some drivers facing some of the highest insurance prices in Canada. Auto insurance prices in New Brunswick are among the lowest in the country, but this does not mean drivers cannot save even more money.

New Brunswick has a no-fault system, meaning that you only ever deal with your own insurance company for claims, regardless of who was at fault for the accident. There are four mandatory coverages that you need for car insurance in New Brunswick by law: third-party liability, accident benefits, uninsured motorist, and direct compensation for property damage (DCPD).

There are several factors that determine how much New Brunswickers pay for auto insurance. One of the most important factors is a person's driving history, including their driving experience and driving record. The more experience and the cleaner the record, the lower the insurance premium. Age is also key, as younger and older drivers are seen as higher risk and will pay more.

The amount of coverage you choose will also affect the cost, as will where you live. Drivers in urban areas will pay more than those in rural areas. The type of car you drive will also affect the price, as will how frequently you drive it.

There are several ways to get cheaper car insurance in New Brunswick. Increasing your deductible, making annual payments, insuring multiple cars together, and combining multiple insurance policies can all help to reduce costs. Installing winter tires, buying an electric vehicle, and enrolling in driving school can also help to lower premiums.

Factors that determine insurance rates

The cost of car insurance in New Brunswick is determined by several factors, some of which are within the driver's control, and some that are not. Here are the key factors that influence insurance rates:

• Age and Driving Experience: Younger and less experienced drivers are considered high-risk and tend to pay higher insurance rates. Insurance rates typically decrease as drivers get older, with adults over 50 benefiting from the lowest rates. However, rates may increase again for older adults, especially those over 70, due to increased risk factors.
• Driving History: A safe driving record with no violations, accidents, or DUI/DWI convictions will result in lower insurance rates. Conversely, a history of moving violations, reckless driving, or accidents will increase insurance costs.
• Insurance History: Maintaining continuous insurance coverage is important. Gaps in coverage or a history of missed payments can lead to higher rates.
• Location: Insurance rates vary by state and ZIP code. Urban areas tend to have higher rates due to increased risks of accidents, theft, and vandalism. Rural areas generally have lower insurance premiums.
• Vehicle: The type of vehicle driven impacts insurance rates. Factors such as repair costs, replacement value, popularity with thieves, engine size, safety record, and collision damage potential are considered.
• Coverage Selections: The amount and type of insurance coverage chosen will affect the cost. While minimum coverage may be cheaper, it is important to ensure adequate protection. Collision and comprehensive coverage, medical expense coverage, and uninsured motorist insurance are all important considerations.
• Deductible: A higher deductible will typically result in lower insurance premiums, as the driver agrees to pay more out-of-pocket in the event of a claim.
• Credit Score: In most states, credit scores are considered when setting insurance rates. A higher credit score generally leads to lower insurance premiums.
• Gender: While controversial, gender can impact insurance rates, particularly for young drivers. Male teen drivers often pay more than their female counterparts due to perceived risk factors.
• Marital Status: Married couples often benefit from lower insurance rates, as data suggests they are less likely to file auto insurance claims.

How to get the cheapest insurance

Car insurance in New Brunswick is mandatory and provided by private insurance companies and brokers. The average cost of car insurance in the province is $867 per year, or about $75 per month. However, prices can differ by up to $5,000, and auto insurance in urban areas like Fredericton, Moncton, and Saint John will be more expensive than in smaller towns or rural areas.

• Shop around and compare quotes: Local brokers and regulators recommend conducting a comprehensive search and comparing multiple quotes before purchasing. This is the best way to save money on car insurance.
• Review your policy and ask your insurance broker for help: Ask your insurance broker what you can do to help reduce your rates.
• Stay with your current insurer: Some insurance companies in New Brunswick offer loyalty discounts to drivers who remain with them for years, especially if they add family members or multiple vehicles to their policy.
• Bundle your policies: Using the same insurance company for both your home and auto insurance will often result in lower premiums.
• Get a multi-car discount: If you have multiple drivers and vehicles in the same household, putting them all on one policy can save you money.
• Increase your deductible: You can lower your premium by increasing your deductible—the portion you pay when settling a claim before your insurer pays the rest.
• Pay premiums annually: Paying monthly adds administrative costs for your insurer, so paying in full annually can lower your premiums.
• Maintain a good driving record: Safe drivers who obey the rules of the road and drive according to road conditions can reduce their chances of an accident. Accidents stay on your insurance record for up to ten years and can result in higher premiums.
• Install winter tires: You can save up to 3-5% by adding winter tires to your car.
• Enrol in a driving school: This is especially applicable to young or new drivers with limited driving experience. Insurance companies appreciate when drivers have received professional driving instruction and may offer lower premiums as a result.
• Buy an electric vehicle: Many provinces across Canada, including New Brunswick, offer special rebates and incentives such as reduced insurance rates for those who drive eco-friendly vehicles.

Reasons to buy insurance

Car insurance in New Brunswick is mandatory and provided by private insurance companies and brokers. The average cost of car insurance in the province is $867 per year, or approximately $75 per month. However, prices can differ by up to $5,000, and some drivers in New Brunswick face some of the highest car insurance prices in Canada.

Peace of Mind

Having car insurance provides peace of mind and financial protection in the event of an accident or incident. It can help cover the costs of repairs, medical bills, and other expenses related to car ownership.

Protection Against Lawsuits

Car insurance can provide liability coverage, which protects you from lawsuits resulting from property damage or personal injuries caused by your vehicle. This can help protect your financial well-being and give you peace of mind in the event of an accident.

Coverage for Uninsured Motorists

In New Brunswick, car insurance typically includes uninsured motorist coverage, which protects you and your family if you are injured in an accident caused by an uninsured or under-insured driver. This ensures that you can still receive compensation for any injuries or damages, even if the other driver does not have insurance.

Comprehensive Coverage

Comprehensive car insurance covers a wide range of incidents beyond collisions, such as fire, hail, theft, vandalism, and falling objects. This type of coverage gives you peace of mind knowing that you are protected against various unforeseen events that could damage your vehicle.

Accident Forgiveness

Some car insurance providers offer accident forgiveness as part of their policies. This means that if you are involved in your first at-fault accident, your insurance rates will not increase as long as you remain with the same provider. This can be especially beneficial for new or inexperienced drivers who are more prone to accidents.

Discount Opportunities

Car insurance companies often offer various discounts that can help lower your premium. For example, maintaining a good driving record, bundling policies (e.g., home and auto insurance), or installing safety features like winter tires can all lead to significant savings on your car insurance.

In conclusion, buying car insurance is essential not only for legal compliance but also for financial protection and peace of mind. It is important to compare quotes from multiple providers and consider the different types of coverage available to find the best policy for your needs.

Types of insurance coverage

Car insurance is mandatory in New Brunswick and there are four types of coverage that must be included in order for policies to be valid.

Third-Party Liability Coverage

This is the legal minimum of car insurance coverage needed in New Brunswick. It aims to protect you if you are involved in an accident and have to make a payment to another party. The minimum amount of liability coverage drivers must carry is $200,000.

Direct Compensation Coverage

Direct compensation coverage protects the policyholder in the event that they get into an accident that is not their fault. This type of coverage provides compensation if you suffer a bodily injury or if your vehicle is damaged in the collision. In the case of direct compensation, you will contact the insurance company to settle your claim, and they will typically pay you directly.

Accident Benefits Coverage

If you, a passenger, or a pedestrian require medical attention following a collision, accident benefits coverage will kick in. Unlike liability coverage or direct compensation, it does not matter whether you are liable for the collision. You can still receive compensation from the insurance provider to cover medical expenses. However, there are limits to what is covered and the amount of money that can be claimed.

Uninsured Automobile Coverage

Uninsured automobile coverage protects you and any passengers in your car if you’re involved in an accident with an at-fault driver who is either uninsured or underinsured. This type of coverage also comes in handy if you are the victim of a hit-and-run.

Optional Coverage

In addition to the mandatory coverages, drivers can also choose to purchase additional coverages. These include:

• Collision insurance: pays to repair or replace your car if you're at fault in a collision.
• Comprehensive insurance: protection against theft, vandalism, and inclement weather.
• All perils: includes collision, comprehensive, and protection if someone steals your car.
• Specified perils: protects against specific risks (that you name) such as lightning, hail, flood, etc.

Frequently asked questions