Average Car Insurance In Newfoundland and Labrador

newfoundland and labrador

The cost of insurance varies greatly according to where you are located. The average cost for insurance in Newfoundland and Labrador was $1014. This ranks Newfoundland and Labrador as the 5th highest province in terms of the average cost for auto insurance. The cost may only be 2/3’s of Ontario’s highest average insurance cost of $1551, but it is still a fairly significant price. Especially when you look at a province like Quebec, which has an average insurance premium of just $712. A little over $300 cheaper than that of Newfoundland and Labrador.

List of Top Auto Insurance Companies in Newfoundland and Labrador

RankingTop Auto Insurance Companies in Newfoundland and Labrador2015 DIRECT WRITTEN AUTO
1Intact Financial Corporation121,035,000
2RSA Canada Group97,906,000
3Aviva Canada Inc80,964,000
4Co-Operators General Insurance Co42,423,000
5Td Insurance, General Insurance29,394,000
6Travelers Canada11,449,000
7RBC General Insurance10,104,000
8Northbridge Financial Corporation10,044,000
9Desjardins General Insurance Group6,372,000
10Zurich Insurance Company Ltd1,864,000
11Economical Insurance782,000
12Lloyd's Underwriters480,000
13AIG Insurance Co Of Canada413,000
14Old Republic Insurance Company299,000
15Chubb Insurance Co of Canada225,000
16Cumis General Insurance156,000
17Guarantee Company Of North America64,000
18Portage La Prairie Mutual24,000

Is Auto Insurance Privately Owned in Newfoundland and Labrador?

In Newfoundland and Labrador, insurance is sold by private insurance companies. This essentially allows insurance companies to compete for your business by offering policies at discounted rates. This is a great thing for you as it means you will be able to get a cheaper auto insurance policy.

What is the licensing program in Newfoundland and Labrador?

The licensing program in Newfoundland and Labrador is a graduated licensing program. The program allows new drivers to first obtain a learner’s permit after completing a written test. Once the written test is completed and passed, the driver is allowed to drive with another insured driver. After a period of time lasting between 8-12 months, the driver may go for their next test. This test is a road test that allows a driver to be able to advance to a level 2 class license. Once you have spent 12 months as a level two class driver, you can take a road test to get your full license.

How Safe is Driving in Newfoundland and Labrador?

Generally speaking, Newfoundland is actually one of the safest places to drive in. A study was done based on a population of 100,000 licensed drivers to see how many fatalities and injuries occurred in each province. Newfoundland and Labrador ranked very well in the study. Per 100,000 drivers, in 2014, there were just 7.4 fatalities. When compared to the rest of the provinces, this ranks Newfoundland and Labrador in fourth place for having the least amount of fatalities. When it comes to injuries, Newfoundland and Labrador didn’t quite rank as well. There were a total of 601.7 drivers on average that were injured per 100,000 licensed drivers.

Should I get insurance through an insurance broker in Newfoundland?

Getting insurance through an insurance broker can be quite beneficial. An insurance broker will compare rates with various insurance companies throughout Newfoundland to give you the best policy to suit your needs. In fact, there is actually an insurance brokers Association of Newfoundland that you can contact to get insurance from. The Association consists of 16 different brokers who are all looking for your business. The insurance brokers Association of Newfoundland actually employs more than 1100 people in Newfoundland and Labrador. If you want to support people living in your own province, you may definitely want to consider getting insurance through one of these brokers.

Is There a Minimum Amount of Mandatory Coverage You Must Have in Newfoundland and Labrador?

Newfoundland and Labrador drivers must have a minimum of $200,000 in third-party liability insurance coverage. People living in Newfoundland have the right to sue for their losses after an accident. Since insurance in Newfoundland is not government run, private insurers will offer various different amounts of liability and collision coverage. Although the minimum $200,000 liability coverage isn’t a lot of money if a major accident occurs, you can easily add more liability to your insurance policy if you desire.

Are There a lot of Drivers in Newfoundland and Labrador?

drivers

The number of new drivers in Newfoundland and Labrador has been on a steady increase over the years. Every year in the period from 2004 to 2013, there has been an increase in the number of drivers registering new motor vehicles, other than for three years during that period. To give you an idea, in 2004, there were a total of 10,991 new motor vehicle registrations. In 2013, there were a total of 16,460 new motor vehicle registrations. This is a very large increase the number of new motor vehicles and it just goes to show how many more drivers are now on the road.

How Does the Insurance Bureau of Canada Affect Newfoundland and Labrador Insurance Rates?

The insurance bureau Canada is essentially the governing body that assists in making sure that insurance is fair for Canadians. The Insurance Bureau of Canada ensures that insurance companies are following the rules and regulations that are set in place. The company also acts as a front for informing Canadians about various different kinds of insurance. Although the Insurance Bureau of Canada does not set insurance rates for each insurance company, they make sure that the rates and policies are within certain parameters and are fair to Canadians.

What Do I Do If I Have an Issue with My Insurance in Newfoundland and Labrador?

assistance

If you have an issue with your insurance in Newfoundland and Labrador, you’re likely going to want to visit a government service center. This is where you go if you need assistance that your insurance company cannot provide. If your insurance company is denying your claims or you think you are being treated illegally or unfairly, this is where you can take your complaints. These centers are also here for answering questions regarding your insurance that need to be answered.

To Conclude:

With Newfoundland’s privately owned insurance, it is pretty easy to get a discount. In Newfoundland, there are plenty of insurance companies wanting to compete for your business. No matter the class of license you have, you shouldn’t have a problem finding an insurance company that will take you. Newfoundland is a relatively safe province to drive in compared to the rest of Canada. If you’re thinking about moving there or are looking to get insurance there, make sure you compare your options and look at the details of the policies available. The more effort you put into searching for the right insurance plan, the more peace of mind you can have when an accident actually occurs.

Resources:

http://www.servicenl.gov.nl.ca/drivers/DriversandVehicles/driverlicensing/graduateddriver.html
https://www.tc.gc.ca/media/documents/roadsafety/cmvtcs2014_eng.pdf
http://www.iban.ca
http://www.stats.gov.nl.ca/DataTools/NewMotorVehicles/visualization/?_=KAPdlNhMfoiqq98F9S4nSA==
http://www.servicenl.gov.nl.ca/faq/gsc.html