Car Insurance in New Brunswick

Compulsory car insurance in New Brunswick

Car insurance is a legal requirement in the province of New Brunswick. So, whether you live in Fredericton, Saint John, or St. Andrews, you must have valid, up-to-date auto insurance at all times. To drive in New Brunswick, you must also hold a valid driver’s license and register your vehicle with the Department of Transportation and Infrastructure. Proof of insurance is required to register your vehicle with the province.

It’s important to note that not just any auto insurance policy will do. Rather, your policy must meet the minimum coverage requirements for car insurance set by the province. In New Brunswick, standard car insurance coverage includes uninsured automobile coverage, direct compensation coverage, accident benefits coverage, and a minimum of $200,000 in third party liability coverage (though many drivers will opt to have greater coverage than this).

Uninsured drivers in New Brunswick

Since auto insurance is a legal requirement throughout New Brunswick, failing to obtain a valid policy before driving is against the law. If caught breaking the law, you can be slapped with serious fines. Uninsured motorists in New Brunswick can be fined anywhere between $200 and $5,000. Beyond fines, drivers may also be faced with jail time or have their driver’s license suspended.

Given the serious consequences that come with driving uninsured in New Brunswick, we recommend holding a valid auto insurance policy at all times. If you need to purchase car insurance, contact BrokerLink today. We can help you choose a policy that complies with provincial law, and also meets your lifestyle and budget.

Reasons to buy New Brunswick auto insurance

There are many reasons that New Brunswick drivers choose to purchase auto insurance. From protecting you in the event of injury to helping pay for vehicle repairs following a collision, check out a few benefits New Brunswick motorists may gain from purchasing auto insurance.

You are protected in case of bodily injury

Car insurance can help cover costly medical expenses if you are injured following a car accident. While your health insurance policy will likely cover the majority of healthcare costs, your car insurance provider may be able to help pay for additional costs, such as physical therapy, prescription medications, or rehabilitation.

You are protected in case of a collision

Car accidents happen all the time, even to the safest of drivers. Auto insurance gives New Brunswick drivers peace of mind knowing that if they get into an accident, their insurer will help cover the costs of repairing or replacing their damaged vehicle.

You are protected in case of theft

Comprehensive coverage, a type of optional car insurance coverage, offers protection in the event that someone steals your vehicle. If your car is stolen, your insurance provider will help cover the cost of replacing it, rather than you having to pay for a new vehicle entirely out-of-pocket.

You are in compliance with the law

One final reason New Brunswick drivers purchase auto insurance is because it is mandatory. Doing so ensures you are in compliance with the law, whereas failing to do so is illegal. If caught driving without insurance in New Brunswick, you can be fined up to $5,000, face jail time, and even have your license suspended.

Mandatory types of New Brunswick auto insurance coverage

Auto insurance is mandatory in New Brunswick, and the province has outlined the specific types of coverage that must be included in order for policies to be valid. The four types of mandatory coverage in New Brunswick include third party liability coverage, direct compensation coverage, accident benefits coverage, and uninsured automobile coverage. This standard coverage is compulsory to protect all drivers, passengers, and cars on the road. A reminder that auto insurance is compulsory for all New Brunswick drivers, no matter whether you lease or own your vehicle, and no matter whether you are a full-time resident or visitor to the province.

Third party liability

Third party liability protects drivers against the cost of bodily injury or property damage if you get into an accident that you are at fault for. Liability coverage may not only help cover the cost of car repairs or medical bills, but also legal fees and court fees, if applicable. This type of coverage is mandatory across Canada, though each province and territory sets the minimum amount. In New Brunswick, the minimum amount of liability coverage drivers must carry is $200,000.

Direct compensation

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

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. That said, there are limits to what is covered and the amount of money you can claim, so it’s important to understand these terms when purchasing a New Brunswick auto insurance policy.

Uninsured automobile

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.

What determines New Brunswick car insurance rates?

Many factors determine how much New Brunswick drivers pay for auto insurance. Your location, marital status, driving history, annual mileage and more, can impact your insurance premiums. New Brunswick drivers might find it helpful to know how each of these details can affect the cost of your auto insurance policy. To learn more about how insurance providers calculate car insurance premiums, keep reading.

Driving history

One of the most important factors in determining the cost of an auto insurance policy is a person’s driving history. Driving history takes into account both driving experience and driving record. Having several years, or even decades, of driving experience can work to your advantage, but only if you have a relatively clean record.

A clean record is free from speeding tickets, collisions, and DUIs. Those with clean driving records may save money on car insurance, whereas drivers with records that include several incidents will likely pay a higher premium.

Similarly, those with minimal driving experience, such as young drivers who only recently obtained a driver’s license, may also pay a higher premium as detailed further below.

Age

From an insurance provider’s perspective, age is a key factor in calculating your auto insurance rate because age can be an indication of experience. For example, the younger you are, the less driving experience you have, and the more likely you are to get into an accident. For this reason, young drivers typically pay the most for auto insurance. Another age group that may see higher rates are drivers over the age of 60.

Provincial laws

The cost of car insurance also depends on the amount of coverage you choose. Each Canadian province sets its own regulations relating to auto insurance, including the minimum amount of coverage required. For example, in New Brunswick, drivers are legally required to carry $200,000 in third party liability coverage at all times. However, many drivers will choose to carry more than this, which can increase the cost of auto insurance.

Location

Where you live and work (if you drive to work) will directly impact what you pay for car insurance. Typically, drivers that live in or frequently travel to large cities, such as Fredericton, Moncton, or Saint John, will pay a higher premium than those who live in rural areas. High-density areas translate to more traffic, which in the eyes of the insurance company, increases your chances of getting into a collision.

Another geographic factor that can influence the cost of auto insurance is if you live in an area prone to climate related incidents, such as flooding.

Car make, model, and year

To purchase a car insurance policy, you must provide details on the type of car you drive. Such details include the make, model, and year of your vehicle. These factors help insurance companies determine how likely it is that your car will be stolen and how much your vehicle would cost to repair or replace if damaged or stolen. Typically, insurance premiums are higher for drivers of new or luxury vehicles, such as sports cars, and lower for drivers of older or used cars. However, if your car is new but is equipped with safety features or anti-theft devices, the insurance company may take this into account.

Annual mileage

How frequently you drive your vehicle is another factor that can impact your New Brunswick auto insurance rate. If you drive very rarely, such as once or twice a week or only on weekends, you are less likely to get into an accident and your insurance rate may be lower.

Conversely, if you spend a lot of time behind the wheel (perhaps your job requires it or you have a lengthy daily commute to work), then your odds of getting into an accident rise, along with your insurance rate. The same can be said for drivers who frequently drive at night and on major highways.

Marital status

Lastly, insurance providers may ask you about your marital status when providing you with a New Brunswick car insurance quote. Why? Data suggests that married people are more financially stable and responsible, which insurance companies believe translates to better driving. It might not seem fair, but the reality is that married drivers tend to pay less for car insurance than their single counterparts.

How to get the cheapest car insurance in New Brunswick

People should not pay more than they have to for auto insurance. That’s why BrokerLink is dedicated to finding the best possible coverage at the best possible rates for all of our customers. Beyond working with a trusted broker with years of experience in the auto insurance industry, there are several other ways that New Brunswick drivers can save money on their car insurance policies. From making annual payments to investing in winter tires, check out our top tips for getting the most affordable car insurance in New Brunswick.

Increase your deductible

One of the fastest ways to get cheap car insurance in New Brunswick is to increase your deductible. A general rule of thumb in the insurance industry is that the higher your deductible (the amount of money you are responsible for paying towards an insured loss), the lower your insurance premium. In New Brunswick, car insurance deductibles typically average around $500, though most insurance companies give you the option of a higher deductible. To save money on car insurance, consider raising your deductible to $1,000 or more. Please note that raising your deductible is not a decision that should be made lightly. Consult with an experienced insurance broker at BrokerLink to understand the consequences of increasing your deductible and whether doing so is right for you.

Make annual payments

If it’s feasible, we always recommend that New Brunswick drivers pay for their car insurance policies annually rather than monthly. Most insurance providers will give you the option of both, however, monthly payments often come with administrative fees, making it cheaper to pay for your car insurance annually.

Insure all cars together

This tip applies to households with multiple cars. Insuring more than one car with the same provider can save you a significant amount of money on each policy (between 15% and 20% on each respective car insurance policy).

Combine multiple insurance policies

Generally speaking, the more insurance you buy from a provider, the more money you can save. For this reason, bundling multiple insurance policies is an effective way of minimizing the cost of auto insurance. For example, if you bundle home insurance and car insurance or leisure vehicle insurance and car insurance together, you can save up to 15% on each respective policy.

Install winter tires on your vehicle

Winter driving in New Brunswick can be treacherous, but installing snow tires on your vehicle can help minimize the risks of driving in the snow. Plus, it can save you money on car insurance since insurance companies recognize that winter tires might reduce your chances of getting into an accident on the road. Therefore, installing snow tires on your car could make you eligible for a discount of up to %5 on your car insurance.

Buy an electric vehicle

Being good to the environment pays in more ways than one. Did you know that purchasing a hybrid or electric vehicle could save you money on car insurance? That’s right, many provinces across Canada, including New Brunswick, offer special rebates and incentives to those who drive eco-friendly vehicles. One such incentive is a reduction in your car insurance rate. Investing in a hybrid or electric vehicle could save you up to 10% on auto insurance.

Enrol in driving school

Lastly, one way to get cheaper car insurance in New Brunswick is to enrol in and attend a recognized driving school. This tip is applicable to young or new drivers with limited driving experience. Insurance companies appreciate when drivers have received professional driving instruction, and will take this into account when calculating your premium. The reasoning behind this is that formal driving schools are said to produce safer, more confident drivers, which means they may be less likely to get into accidents.

Compare New Brunswick car insurance rates with a BrokerLink broker

Shopping for car insurance can be overwhelming, but BrokerLink is here to make the process stress-free. With a trusted broker from BrokerLink by your side, we can help you find the perfect car insurance policy in no time. We’ll browse coverage options on your behalf, compare quotes, and unlock discounts to find you the best coverage at the best rate. Keep reading to learn why working with a New Brunswick insurance broker is worth your while.

Brokers work independently

Insurance brokers work independently of insurance companies. This means that they can focus on the customer’s needs above all else.

Brokers do the work for you

Another benefit of working with an insurance broker from BrokerLink is that they do all the heavy lifting. From contacting Canada’s top insurance companies to obtain quotes to reviewing coverage options and walking you through your policy, we work to find a policy that meets your needs.

Brokers are New Brunswick auto insurance experts

Finally, BrokerLink’s insurance advisors are experts in New Brunswick car insurance. We have helped thousands of residents find quality car insurance policies and we will make sure you have the right coverage for your needs.

Get in touch to learn more about New Brunswick car insurance rates

Are you ready to learn more about New Brunswick auto insurance?

BrokerLink has offices all across Canada, including in New Brunswick, and we would love to meet you! However, if you prefer to get in touch by phone, give us a call at your leisure and a local BrokerLink insurance advisor will assist you. You can also reach us by email. No matter how you prefer to get in touch, one of our insurance advisors will be able to answer your questions and explain the coverage options available to you.

Plus, BrokerLink offers free auto insurance quotes to all New Brunswick residents. In just five minutes, you can gain access to an accurate and competitive quote that is 100% obligation-free.

To begin, contact one of our car insurance experts in New Brunswick for a free quote. All you need to do is answer some basic information about yourself, such as your age, address, and the type of vehicle you drive. From there, we will review your answers and provide you with a free car insurance quote in no time. Get started now by contacting BrokerLink today.

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