Auto insurance requirements in Halifax, Nova Scotia
Certain types of car insurance are required in Halifax. This is because Nova Scotia has made auto insurance mandatory in order to legally drive in the province. An insurance broker can help you understand exactly what types of car insurance are required if you want to drive in Halifax and how each type can protect you. As a general overview, we outline the four mandatory coverages below:
Make sure that your policy always contains the four coverages listed above. If it doesn’t, you will be driving illegally, and you could face serious consequences for doing so. For example, depending on the situation, an uninsured driving charge in Nova Scotia could result in fines between $2,000 and $4,000, the impoundment of your vehicle for up to 90 days, the suspension of your driver’s licence for up to a full year, and even jail time if you are a repeat offender.
As you can see, these penalties are severe, which makes buying car insurance your best option. Reach out to a BrokerLink insurance advisor if you want more information on what types of coverage you need to buy to ensure your policy complies with local laws in Nova Scotia.
Halifax mandatory car insurance coverage
Mandatory car insurance coverage in Nova Scotia includes the following types of coverage:
Third party liability coverage
Liability insurance comes into play when you get into an at-fault accident. If you get into an accident that you cause and there are damages, such as bodily harm or property damage, you can file a third party liability claim. From there, your insurer will issue a payout that can help pay for medical expenses, vehicle repair bills, and even legal fees.
All Nova Scotia drivers are required to carry no less than $500,000 in liability coverage at all times. With the rising cost of goods and services, many opt for higher coverage limits, as high as two million in third party liability coverage.
Accident benefits coverage
Accident benefits coverage will compensate policyholders for the cost of medical attention if you or someone else involved is injured in a car accident. For example, if you break a bone or suffer from a concussion, accident benefits can cover any medical fees incurred that aren’t covered by health insurance. These may include prescription medication fees, physical therapy fees, and other fees related to your injury, such as lost income.
Direct compensation coverage
Direct compensation coverage can help you pay to repair your vehicle if it is damaged in an accident. This coverage allows you to go to your own insurance company to have your vehicle repaired, rather than having to deal with a third party insurance company. To claim this type of Nova Scotia car insurance coverage, you cannot have been at fault for the accident.
Uninsured automobile coverage
Lastly, uninsured automobile coverage will help pay for the cost of an accident if you get into a collision with a driver who is uninsured, underinsured, or anonymous. Whether the driver was driving illegally without car insurance or they fled the scene of the accident (i.e. a hit and run), uninsured automobile coverage can help pay for damages or repairs to your vehicle.
Halifax optional car insurance coverage
When you purchase a car insurance plan in Halifax, you will have to make many decisions, from deductibles and coverage limits to the types of coverage you want to include with your policy. The four coverages listed above are all mandatory, which means you won’t have a choice between adding them to your policy or not.
However, the types of coverage below are all optional, so you will need to carefully consider whether they are worthwhile for your needs. A few of the most popular types of optional car insurance in Halifax are listed below:
Collision coverage
Collision car coverage is great to have if you get into a major accident. With this type of coverage, you can file a claim with your insurer to help pay for the cost of repairing or replacing your damaged car. Collision coverage can be claimed whether you are found to be liable for the accident or not. It also covers accidents with other cars and animals or grounded objects.
Please note that collision coverage may be required if you lease your car in Halifax.
Comprehensive coverage
Comprehensive car coverage is another popular type of optional car insurance coverage in Halifax. You may also hear it referred to as parked car insurance and this is because it safeguards cars against risks while parked.
Specifically, you can file a comprehensive coverage claim if your car is stolen or damaged while parked. The perils that this type of coverage protects against range usually include theft, vandalism, fire, explosions and riots, falling and flying objects, and weather-related incidents. Comprehensive car insurance may pay to repair or replace your vehicle if it is damaged under any of the aforementioned circumstances.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Halifax is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage and eligibility vary by province.
Waiver of depreciation
A waiver of depreciation can be added as a rider or endorsement to your Halifax car insurance policy. When added, you will receive a payout from your insurance company that is equal to the value of your car in the event that your vehicle is totalled in an accident and needs to be replaced. Unlike actual cash value coverage, the biggest perk of a waiver of depreciation is that it does not account for depreciation when calculating your car’s worth. Thus, the former usually results in a much larger settlement than the latter, allowing you to return to your normal routine quickly and smoothly.
Loss of use coverage
Loss of use coverage can pay for you to take taxis, rent a car, or take public transit while your vehicle is being repaired if it gets damaged in an accident. We all know how long a car can take to repair.
Thankfully, while your car is in the shop, you can be reimbursed for the cost of getting around with loss of use coverage. Please note that as with any coverage, loss of use coverage has a limit. It is important to choose a limit that meets your needs.
Compare auto insurance rates in Halifax
When shopping for car insurance, the best thing you can do is to compare rates. And the easiest way to do this is with help from an insurance broker. Licensed insurance brokers like those at BrokerLink are insurance experts. They know the ins and outs of the Nova Scotia insurance industry and will ensure you find a great policy at a competitive price.
When you work with BrokerLink, you will be assigned a dedicated insurance advisor who will make it their mission to find you a policy that meets your needs. They take the time to understand your driving habits and budget. From there, they will reach out to the top insurance companies in Canada to obtain quotes on your behalf. They will then compare these quotes in order to find you the most comprehensive coverage at the most affordable price.
Plus, BrokerLink’s team of insurance advisors is pleased to offer free car insurance quotes to customers. Simply get in touch, answer a few questions, and you can receive a free quote in as little as five minutes. It couldn’t be easier!
How are Halifax car insurance premiums calculated?
The way that car insurance premiums in Halifax are calculated is complex, and the reality is that each insurance company uses its own risk-calculation formula. That said, most insurance companies use many of the same factors to determine a policyholder’s premium. Even if they weigh them differently, you can generally expect the following factors to be considered when your rates are being calculated:
- Where you live
- Age
- Gender
- Vehicle type
- How you use your vehicle
- Driving record
- Driving experience
- Past claims
- Prior insurance coverage
- Number of kilometers you drive
- Type of coverage on your policy
- Your deductible(s)
Given how many variables are involved in calculating a policyholder’s premium, it explains why no two policyholders pay the same amount of money for car insurance, even in the same province or city. Thus, the best way to find out how much your policy will cost you is to request a free quote from a trusted insurance broker near you.
BrokerLink offers free auto insurance quotes to all customers, and our quotes are as reliable and accurate as can be to give you the best possible idea of how much your premium will be. It is worth noting that insurance brokers at BrokerLink do not set rates or bind coverage. However, we can help you shop around for coverage and obtain more quotes on your behalf.
How to find cheap car insurance in Halifax, Nova Scotia
If you want to find a cheap car insurance policy in Halifax, you’ve come to the right place. BrokerLink specializes in finding auto insurance coverage to suit all budgets. Simply get in touch, let us know your budget, and we will find you a competitive rate for your policy.
In addition, we can give you all sorts of tips and advice on ways that you can further reduce your rates, such as by qualifying for auto insurance discounts or choosing high deductibles. Continue reading for a list of money-saving car insurance tips:
Choose an annual payment plan for your Halifax car insurance policy
The first thing you will want to do is to choose an annual payment plan for your Halifax car insurance policy. While month to month car insurance has certain advantages, you could end up paying more for it, especially if your insurance company charges extra fees per transaction. Thus, the cheaper option is to pay for your policy upfront and then on an annual payment plan every year after that.
Choose high car insurance deductibles
Deductibles are one factor that impacts how much your Halifax car insurance policy will cost you. If you can afford a higher deductible and pay it in the event of a claim, you can save a lot of money on car insurance. Alternatively, if you feel safer choosing a low deductible to start and raising it in the years to come, you can also reduce your rates by doing this.
Insure multiple cars together
Did you know that buying multiple auto insurance policies can result in major insurance savings? Many insurance companies offer discounts to policyholders who purchase more than one car insurance plan from them at the same time. So, if you have multiple cars in your household, ask an insurance broker about insuring them together.
Bundle your home and auto insurance policies
To save even more money on car insurance, you can bundle your home and auto insurance policies, too. Again, insurance companies like when customers purchase more than one insurance product from them simultaneously. Whether you are looking to buy tenant insurance, homeowner’s insurance, or even cottage insurance, buying any type of property insurance policy alongside your auto insurance plan can result in a discount.
Ask an insurance broker about car insurance discounts
You might be surprised to learn how many car insurance discounts exist. From telematics discounts to winter tire discounts, there are many ways to save on car insurance and every bit matters.
Outfit your car with winter tires
Another way to save money on car insurance in Halifax is to install winter tires on your car. Snow tires are not mandatory in Nova Scotia. That said, many insurance companies will offer you a discount if you show proof that you install winter tires on your car every season.
This is due to the fact that winter tires make driving on snow and ice-covered roads much safer. Thus, not only can you qualify for a discount by installing winter tires on your car, but you also reduce your odds of getting into an accident, which can help you maintain a clean record and further reduce your car insurance rates.
Get rid of coverage that no longer makes sense
As the years go by, your insurance needs are likely to change. Your policy should change with it. Every time your policy is up for renewal, review your coverage to see if there are any types that you can remove or cut down. A BrokerLink insurance advisor can review your policy for you if you want an expert opinion on what types of coverage are worth keeping and which are safe to remove.
Take a driving course
Completing an approved driving course in Nova Scotia can also save you money on auto insurance. Specifically, it can result in an auto insurance discount that will lower your rates, which can make a big difference, especially if you’re a new driver with a high premium.
Maintain a clean driving record
A clean record is key if you want to keep your rates low. The best way to do this is by adopting safe driving habits, like giving other drivers space and obeying the speed limit at all times. Not only can a clean record lower your rates, but it can even make you eligible for a safe driver discount.
Drive a hybrid or electric vehicle
Driving a hybrid and electric car can also result in car insurance savings. As a way of encouraging drivers to go green, many insurance companies now offer discounts to those with eco-friendly vehicles.
There are also a number of government rebates you might be eligible for by making the switch from gas to hybrid or electric.
We’re in your community
BrokerLink is the leading insurance brokerage in Nova Scotia for a reason. We don’t just care about insurance, we care about our customers. We can help you find the best coverage in your area because we live here too! We will work hard to find you the best possible policy for your needs at a price you can afford. Find out more about our car insurance services and community initiatives by getting in touch today.
Contact us
At Halifax BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible. We can also help you adjust or renew your policy down the road.
You can reach us by phone, email, or in person at any one of our locations throughout Nova Scotia. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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FAQs about Halifax auto insurance
If I get into an at-fault collision, will my Halifax car insurance premium be affected?
Yes, in most cases your insurance premium will rise. This is due to the fact that an at-fault accident will go on your driving record, and the more infractions on your driving record, the higher your rates will be. Accidents stay on driving records for a period of six years, so if you get into an at-fault collision, you can expect your rates to be affected for this length of time. The only exception to this is if you have accident forgiveness coverage and this was your first at-fault accident. In that case, your rates may remain the same.
What types of auto insurance can I buy through a Halifax insurance broker?
Insurance brokers are equipped to help customers find every type of coverage they could possibly need. This includes mandatory coverage, like third party liability coverage, as well as optional protection, such as accident forgiveness coverage, collision coverage, or comprehensive coverage.
Where can I get a free auto insurance quote in Halifax?
Free auto insurance quotes can be obtained from most insurance brokers and insurance companies in Nova Scotia. You can request a free quote online, in person, or over the phone. Be prepared to answer some questions about yourself and your driving habits, such as your age, location, and the type of car you drive.
If you have any questions, contact one of our local branches.
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