Do I need to buy car insurance in Labrador City?
If you want to drive, then yes, you need to buy car insurance in Labrador City. Auto insurance is mandatory throughout the entire province of Newfoundland and Labrador. So if you want to drive legally, you must purchase a valid policy. In Labrador City, that means purchasing the following four types of coverage:
Since auto insurance is compulsory in Newfoundland and Labrador, you cannot drive without it. Choosing to drive without auto insurance is a serious infraction and, as such, can have heavy consequences.
For example, if you are caught driving uninsured in Labrador City, you can be fined up to $2,600, your vehicle can be impounded, your car’s registration might be cancelled, and you might receive six demerit points. All of this can have long-term consequences, both for your driving habits and lifestyle, as well as for your insurance premium. Therefore, the best course of action is to purchase a valid policy from the get-go.
What does mandatory car insurance coverage look like in Labrador City?
Mandatory insurance coverage in Labrador City is designed to protect drivers and other vehicles from the cost of accidents. We break down each type of required insurance coverage in Newfoundland and Labrador below:
Third party liability coverage
Liability insurance is what you will claim if you get into an at-fault accident that results in bodily injury or property damage. This type of coverage can pay for the medical fees associated with an injury, the repair bills associated with property damage, and even legal fees, such as defence and settlement fees. In Newfoundland and Labrador, all drivers must carry at least $200,000 in third party liability coverage at all times. Find out how to file an auto insurance claim by getting in touch with BrokerLink.
Accident benefits coverage
Accident benefits coverage is for when you get into an accident that causes bodily injury to yourself or someone else, such as a pedestrian or passenger. If someone is harmed in the accident, you can file an accident benefits claim to help you pay for the cost of medical attention. Specifically, accident benefits cover costs not covered by health insurance, like prescription medications or physical therapy. It may also cover funeral fees and lost income if someone dies or cannot work due to their injury.
Direct compensation coverage
Direct compensation coverage will come into play if your car is damaged in a collision. This type of coverage will pay to repair your vehicle as long as you are not found to be at fault for the accident.
Uninsured automobile coverage
Lastly, uninsured automobile coverage will pay for a wide range of costs associated with a collision if you get into a collision with a certain type of driver. More specifically, this type of coverage will protect you if you get into an accident with an uninsured, underinsured, or anonymous driver.
What types of extra protection can I add to my Labrador City car insurance policy?
Many drivers do not find basic car insurance in Labrador City to be adequate. For this reason, they choose to add additional protection to their policies. Thankfully, insurance companies across Newfoundland and Labrador offer a wide range of optional car insurance coverages to drivers. These coverages offer extra protection against the risks of driving, such as collisions, theft, and more. Continue reading to learn more about some of the most common types of optional car insurance coverage in Labrador City:
Collision coverage
Collision car coverage will pay for the cost of repairing or replacing your vehicle if it is damaged in a car accident. Collision coverage is usually claimed when the damage is extensive or when the vehicle is totalled, which can be expensive. Thus, collision coverage is good to have if you want financial protection in the event of this worst-case scenario.
Comprehensive coverage
Comprehensive car coverage is a second type of optional coverage that gives many Labrador City drivers peace of mind. It protects against damage or losses that may occur while your car is parked, whether it is parked on the street, on the driveway, or even at your office.
With this type of coverage, you can receive a payout from your insurance company if your car is stolen, vandalized, or damaged due to a falling object, weather, or more. The specific insured perils that comprehensive insurance covers typically include theft, vandalism, explosions and riots, falling and flying objects, fire, and weather-related incidents.
Accident forgiveness coverage
Another type of optional car insurance coverage popular among drivers in Labrador City 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 is a wise choice for Labrador City policyholders driving new cars. Since these cars are usually higher in value, a waiver of depreciation will come in handy if you are involved in an accident and your car is totalled. With this type of endorsement added to your policy, your insurance payout will be equal to the value of your car rather than account for depreciation like with actual cash value coverage.
Loss of use coverage
Loss of use coverage is another type of extra protection that many Labrador City drivers like to add to their auto insurance policies. With this coverage type, you will be protected should you be without your car while it’s being repaired.
For instance, if it’s damaged in an accident and you need to go into the shop for a week, you can be reimbursed for the cost of renting a car or taking taxis during this time.
Find great coverage at an affordable rate with help from a Labrador City insurance broker
Shopping for car insurance in Labrador City just got a whole lot easier thanks to BrokerLink. BrokerLink has a team of experienced insurance brokers in Labrador City who are ready to help you find the best possible coverage for your needs. We have years of experience helping customers just like you find comprehensive policies at affordable rates.
Here at BrokerLink, we specialize in personalized auto insurance coverage. You will never find us taking a one-size-fits-all approach to insurance. Quite the opposite. We will dedicate ourselves to finding coverage that meets your specific needs, lifestyle, and driving habits.
In addition, the BrokerLink team will always ensure you get the most competitive rate possible for your policy. We can do this by reaching out to our contacts at various insurance companies in Canada and by providing you with free car insurance quotes. Request a free quote today!
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How are car insurance rates calculated in Labrador City?
Car insurance rates in Labrador City are calculated using the following factors:
- 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)
Since car insurance rates are calculated according to so many factors, it is impossible to provide an estimate as to how much your coverage will cost without knowing more about you. Thus, the best way to find out what your premium will be is to contact an insurance broker and request a free car insurance quote. A BrokerLink insurance advisor will assess your circumstances and provide you with an accurate and reliable quote.
How to find cheap car insurance in Labrador City
Start saving money on car insurance today by contacting BrokerLink. As auto insurance experts who have worked in the industry for over 30 years, we can offer all kinds of advice and tips on ways that you can cut insurance costs. Read below to learn a few of our tips, or get in touch with us for a broader discussion on ways that you can save:
Select a yearly payment schedule for your insurance policy
As a policyholder, you must choose between an annual insurance policy and a month to month car insurance policy. Both typically have terms of one year. The difference is how you pay for your policy. With a yearly policy, you pay for the full year upfront. However, with a month-to-month policy, you pay for your policy on a monthly basis.
The catch is that some insurance companies charge extra for monthly policies in the form of administrative or transaction fees. While some companies also offer discounts for those who pay in one lump sum. Thus, if you want to keep your rates low, be sure to choose the option that is the cheapest, which, in some cases, will be the yearly payment schedule.
Pick high auto insurance deductibles for your policy
Tip number two is to pick high auto insurance deductibles for your policy. As seen above, deductibles are one of the factors that dictate how much you pay for car insurance. If you choose lower deductibles, your policy is likely to be more. But if you pick high deductibles, your policy may cost less. However, be mindful of your budget to ensure you will not choose a deductible that is so high you could not afford to pay it in the event of a claim.
Insure two or more cars together
Buying multiple auto insurance policies can result in a car insurance discount that allows you to save money on your Labrador City policy. Although this may only apply to those with two or more vehicles in their household, it can be a smart decision, as not only can you save money on both car insurance plans, but you will only have one renewal date to keep track of, which makes it very convenient.
Bundle property and car policies in Labrador City
Like buying multiple car insurance plans, insurance bundling is another way that you can receive a discount on your policies. Insurance bundles usually include two or more different insurance products, such as homeowner’s insurance and car insurance or tenant insurance and car insurance. You may also be able to bundle car insurance and recreational vehicle insurance. Contact BrokerLink for more information on how insurance bundling works and how you can qualify for this type of discount.
Speak to a BrokerLink insurance advisor about car insurance discounts that may be available to you
Qualifying for a discount or multiple discounts is one of the most effective ways of saving money on car insurance. Thankfully, there are many ways to do so. The key is determining what types of discounts are out there and what conditions need to be met to qualify. A BrokerLink insurance advisor can help you with this by providing a list of discounts you may be eligible for.
Install snow tires on your vehicle
Installing winter tires on your car is not mandatory in Newfoundland and Labrador. That said, doing so can result in a car insurance discount. Since insurers know that these tires make driving safer during Newfoundland’s harsh winters, they will likely offer you a discount if you can show proof that you installed them on your car.
Review coverage before renewing your policy
This might sound obvious, but take the time to review your policy before it renews each year. You would be surprised to find out how many policyholders purchase a policy when they buy a new car and never look at it again when the reality is that the coverage you need changes from year to year.
While the mandatory coverage will stay the same, there might be forms of optional coverage that you no longer need as your car gets older and depreciates in value. You might also be able to lower your coverage limits or raise your deductible over time, any of which could lower your premium.
Thus, before your policy is renewed, review your coverage to ensure it still makes sense for your needs and amend it as necessary. Make sure that you renew your policy before it expires; otherwise, you will need to go through the expired car insurance renewal process.
Enrol in a driver’s education program
Next, enrolling in a driver’s education program in Labrador City can help you save money on car insurance. Whether you are a new driver or a seasoned professional, receiving driving instruction from a professional never hurts.
Plus, your insurance company might even give you a discount on your coverage if you show proof that you completed a course at a recognized driving school in Newfoundland and Labrador.
Maintaining a clean driving record in Newfoundland and Labrador
Maintaining a clean driving record is of the utmost importance for a number of reasons. First, a clean record means that you won't have to file insurance claims, which reduces your premium. Second, if you can maintain a clean record for a number of years in a row, you might become eligible for a safe driver discount, which will further reduce how much you pay for car insurance. For a list of safe driving tips, contact BrokerLink.
Buy a hybrid or electric vehicle
Buying a hybrid and electric car is yet another way to cut insurance costs in Newfoundland and Labrador. Insurance companies have started to reward drivers who drive these types of eco-friendly cars by offering them a discount if they do so.
We’re in your community
BrokerLink not only specializes in bringing high-quality car insurance, business insurance, and home insurance services to the people of Labrador City, but we also give back to the community. We make an effort to get to know our customers and get involved in local initiatives, from fundraisers to charity marathons. Learn more about BrokerLink’s dedication to corporate social responsibility by contacting us.
Contact us
At Labrador City BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, travel plans, recreational items, or pets, let us help you find the best coverage possible.
You can reach us by phone, email, or visit our location. 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 car insurance Labrador City
If I get into an at-fault accident, how will my Labrador City auto insurance premium be affected?
It will most likely go up - unless you have accident forgiveness coverage. If you have this type of coverage and the at-fault accident was your first, then your rates may stay the same. But in most other scenarios, they will go up at the time that your policy renews. Your rates will likely stay raised until the accident no longer appears on your driving record, which could take up to six years. Learn more about auto insurance history reports by getting in touch with BrokerLink.
What types of car insurance can I buy through a Labrador City insurance broker?
An insurance broker in Labrador City can help customers find all kinds of car insurance, from young driver car insurance to senior car insurance. Some of the specific types of coverage that a broker can help you add to your policy include: third party liability coverage, accident benefits coverage, uninsured automobile coverage, loss of use coverage, accident forgiveness coverage, waiver of depreciation, collision coverage, and comprehensive coverage, among others.
Can I get a free auto insurance quote in Labrador City?
Yes. Many insurance companies and insurance brokers offer free auto insurance quotes to customers. Be prepared to answer a few questions about yourself, your driving habits, and the type of vehicle you drive to receive the most accurate quote possible.
If you have any questions, contact one of our local branches.
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