No-Fault Insurance: New Brunswick's Approach

New Brunswick is not a no-fault insurance province. It operates a tort liability insurance system, meaning that the insurance company of the driver responsible for the accident will pay for damages and claims. However, New Brunswick does have a no-fault system for property damage claims, meaning that your insurance company will pay for repairs to your vehicle, regardless of who is at fault.

New Brunswick car insurance laws

New Brunswick operates on a no-fault insurance system, meaning that in the event of an accident, drivers make injury claims through their own insurance provider, regardless of who was at fault. However, there are still options to sue for pain and suffering.

In New Brunswick, car insurance is mandatory for all vehicle owners and drivers. Under the Motor Vehicle Act, all drivers must carry a minimum amount of auto insurance coverage. Failure to do so can result in fines ranging from $200 to $5,000, impounding of the vehicle, suspension of the driver's license, and the addition of demerit points to the driving record.

The minimum mandatory auto insurance coverage in New Brunswick includes:

• Third-party liability insurance: $200,000 for bodily injury or death, and $200,000 for property damage.
• Accident benefits coverage: medical/rehabilitation expenses, income replacement, etc.
• Uninsured motorist coverage: mandatory coverage for up to $200,000 if an uninsured driver is at fault.
• Direct compensation property damage insurance: covers damages when another driver is at fault for the accident.

In addition to the mandatory coverages, drivers can also opt for additional coverages, such as collision coverage, comprehensive coverage, specified perils insurance, and all-perils insurance.

When determining car insurance rates in New Brunswick, insurers consider various factors, including the driver's age, driving history, insurance history, postal code, mileage, and the type of vehicle.

New Brunswick has some of the lowest car insurance rates in Canada, thanks to cost-saving reforms implemented by the province in 2003. The average cost of car insurance in the province is $868 per year, or about $72 per month, according to the Insurance Bureau of Canada.

Mandatory coverage

In New Brunswick, automobile insurance is mandatory for all vehicle owners and drivers. The Motor Vehicle Act requires all drivers to carry a minimum amount of auto insurance coverage. Failure to do so can result in fines ranging from $200 to $5,000, vehicle impoundment, suspension of one's driver's license, and demerit points on one's driving record.

The mandatory basic coverage includes:

• Third-Party Liability Insurance: This covers you as a vehicle owner and driver if you injure someone or damage someone else's property. The minimum liability coverage required in New Brunswick is $200,000, though most residents opt for additional coverage.
• Direct Compensation—Property Damage (DC-PD): This allows you to collect compensation directly from your insurer, even if someone else caused the damage. It covers damage to your vehicle or its contents and the loss of use of your vehicle or its contents if another person was at fault.
• Uninsured Automobile and Unidentified Automobile Insurance: This covers you in the event of an accident caused by an uninsured or unidentified driver, including hit-and-run incidents. It also covers damage to your vehicle caused by an identified but uninsured driver, subject to a $250 deductible.
• Accident Benefits: This provides medical and rehabilitation expenses, funeral benefits, death benefits, and loss of income benefits for you or your passengers injured in a car accident, regardless of fault. The minimum coverage includes up to $50,000 for medical and rehabilitation expenses and up to $100 per week for lost income.
• Collision or Upset Insurance: This covers losses when an insured vehicle is involved in a collision with another object or vehicle or rolls over, subject to a deductible if you are found at fault.
• Comprehensive Insurance: This covers damage to your vehicle caused by theft, vandalism, or fire, with a deductible except in cases of theft or fire of the entire vehicle.

While not mandatory, many residents also opt for additional coverage, such as the SEF 44 Family Protection Endorsement, which provides additional coverage if you or your family member are injured by an underinsured driver.

Optional coverage

Car insurance is mandatory in New Brunswick, and there are several optional add-ons you can include in your policy for more comprehensive coverage. Here is a list of optional coverages:

• Collision Insurance: This insurance covers the cost of repairing or replacing your car if you are at fault in a collision.
• Comprehensive Insurance: This insurance protects your car from theft, vandalism, and inclement weather.
• All Perils: This includes collision, comprehensive, and protection if someone you know steals your car.
• Specified Perils: You can name a specific risk, such as lightning, hail, or flood, and get coverage for it.

In addition to these common optional coverages, New Brunswick also offers standard endorsement forms (SEF) that you can add to your policy for specific situations:

• SEF16: Allows you to put your car insurance on hold.
• SEF20: Reimburses you for alternative transportation (e.g. rental) if your vehicle is being repaired due to damage or theft.
• SEF43: Ensures you receive the full replacement value of your car, rather than the depreciated value.
• SEF44: Provides additional coverage if you or a family member are injured by a driver who does not have sufficient insurance.

Average car insurance premium

New Brunswick uses a no-fault insurance system, meaning that in the event of an accident, drivers make injury claims through their own insurance provider, regardless of who was at fault. This does not apply to claims for property damage.

The average car insurance rate in New Brunswick is $867 per year or about $75 per month, according to the Insurance Bureau of Canada (IBC). However, rates can vary significantly depending on your driving record, location, vehicle, and other factors.

• Liability coverage: $410 per year
• Collision coverage: $239 per year
• Comprehensive coverage: $219 per year

So, if you have a policy with all three standard coverage types, you can expect to pay around $868 per year or $72 per month. However, rates can range anywhere from $500 to $2,000 per year depending on your specific risk profile.

Some factors that influence your risk profile and thus your insurance premium include:

• Your age and gender: Insurers have found that young drivers, especially young males, have higher accident rates.
• Your driving history: A clean record with no accidents or traffic violations will earn you lower rates.
• Your vehicle: The make, model, year, and value of your car affect premiums. Newer cars or cars with expensive repairs tend to cost more to insure.
• Your insurance history: Insurers reward longer-term customers.
• Your credit score: Those with poor credit scores pay higher premiums on average than those with good credit.

There are also several ways to save money on car insurance premiums in New Brunswick:

• Compare quotes from multiple insurers.
• Raise your deductible.
• Reduce your mileage.
• Enrol in a telematics program.
• Maintain a good credit score.
• Take a defensive driving course.
• Increase liability limits.
• Check for group discounts.

Driving without insurance

In New Brunswick, auto insurance is mandatory for all vehicle owners and drivers. The province's Motor Vehicle Act requires all drivers to carry a minimum amount of auto insurance, which includes liability insurance, accident benefits, and uninsured automobile coverage. The minimum liability coverage required is $200,000, which can help cover bodily injury and property damage caused by the insured.

Failing to have proper insurance in New Brunswick can lead to harsh penalties. In addition to the fines mentioned above, police may impound your vehicle, suspend your driver's license, and add demerit points to your driving record. If you are involved in an accident while uninsured, you may also be held personally liable for any damages or injuries caused.

It is important for drivers in New Brunswick to understand the requirements for auto insurance and the risks associated with driving without it. By complying with the law, drivers can protect themselves financially and legally in the event of an accident or vehicle damage.

Frequently asked questions