Car Insurance in Newfoundland and Labrador

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When the gales from the North Atlantic come blowing in over the Grand Banks, the roads in Newfoundland and Labrador can quickly become hazardous. So wherever you drive, from Torngat Mountain National park to St. John’s, from L’Anse aux Meadows to Corner Brook, make sure you have the right car insurance for your needs.

BrokerLink compares rates from a wide range of providers, ensuring you get the best deals available.

Auto insurance in Newfoundland and Labrador

Newfoundland and Labrador drivers need to understand that having auto insurance is mandatory. Therefore, all licenced Newfoundland and Labrador drivers must have a valid car insurance policy at all times if they want to drive their car. In Newfoundland and Labrador, a valid car insurance policy is one that complies with the province’s minimum $200,000 coverage requirements for third-party liability coverage, uninsured and unidentified automobile coverage and direct compensation - property damage coverage.

In order to buy car insurance in Newfoundland and Labrador, motorists must have a valid driver’s license. They should also be prepared to provide a record of their driving history and information regarding other people who may be driving their vehicle often, such as a spouse or adult child. If you have questions about mandatory insurance coverage in Newfoundland and Labrador, get in touch with BrokerLink today.

Driving without insurance in Newfoundland and Labrador

If you drive your vehicle without insurance in Newfoundland and Labrador, it is illegal. Therefore, if a motorist is pulled over while driving without insurance, they could face serious consequences. Specifically, uninsured drivers in Newfoundland and Labrador could:

Be fined between $2,000 and $4,000 for a first offence
Be fined between $3,000 and $5,000 for a second offence
Lose your licence for 90 days (suspension)
Have your vehicle impounded for up to three months

Ultimately, it's just simply not worth the risk to drive without insurance. Should you find yourself in need of car insurance quickly, contact BrokerLink, and we will help you find a policy with the right coverage.

Why buy car insurance in Newfoundland and Labrador?

Shopping for Newfoundland and Labrador car insurance is no easy task, but luckily, BrokerLink is here to help. There are several reasons that Newfoundland and Labrador drivers choose to purchase car insurance, a few of which are outlined below:

1. You are protected in case of bodily injury

Should you be injured in a collision, auto insurance can help. Standard car insurance rates in Newfoundland and Labrador provide financial protection against bodily injury. Thus, if you or someone else needs medical attention following an accident, your insurance company will help you cover the costs of medical care not covered by your health insurance policy, such as prescription medications, rehabilitation, or physical therapy.

2. You are protected in the event of a collision

Auto accidents happen, and they can have serious consequences. Thankfully, car insurance can help you prepare by protecting you from the financial burdens of an accident. Fortunately, most car insurance plans cover the cost of repairs or a replacement vehicle if it is damaged in a collision.

3. You are protected against theft

If you decide to add comprehensive insurance to your car insurance policy, you can protect your vehicle from unforeseen events, such as, in the event that it was stolen. Comprehensive coverage is available for Newfoundland and Labrador drivers to purchase to protect their vehicles against all kinds of non-collision events, such as theft, vandalism, floods, falling objects, earthquakes, hurricanes and more. However, even with comprehensive coverage you may still be subject to your deductible in the amount of a loss, typically comprehensive deductibles start at $250.

4. You are in compliance with the law

Finally, Newfoundland and Labrador drivers should purchase car insurance because it puts them in compliance with the law. Owning valid auto insurance is mandatory in Newfoundland and Labrador if you wish to drive your car. Driving uninsured is not only illegal but can result in fines, licence suspensions and even jail time. To avoid these instances, make sure you purchase an auto insurance policy that meets the minimum requirements set by the Newfoundland and Labrador provincial government.

Car insurance coverage in Newfoundland and Labrador

All licenced drivers in Newfoundland and Labrador must have a car insurance policy that meets the minimum coverage requirements laid out by the provincial government. In a standard auto insurance policy, you will find the following types of coverage: direct compensation property damage, third-party liability coverage, and under/uninsured and unidentified automobile coverage. In addition to these compulsory coverages, there are other types of coverage that drivers in Newfoundland and Labrador can add to their policies. While these additional coverages are not required by law, they offer drivers further protection and peace of mind. The experts at BrokerLink have outlined each type of coverage below:

Mandatory

Optional

Third-party liability, or simply liability coverage, is designed to offer protection should you be involved in a collision where another person is injured and/or their property is damaged (i.e., their vehicle.) With liability insurance, you may receive compensation to help pay for the other person’s medical expenses for any injuries they may have suffered in the accident, or the cost of repairs for their vehicle. If the person sues, it can also cover legal or court fees, up to the policy’s limit. Newfoundland and Labrador drivers must carry a minimum of $200,000 in liability insurance, although more is often recommended.

This coverage was named aptly, as it implies exactly what it does: your insurer will typically offer direct payment for the damages that were caused (in order to repair or replace the vehicle). Direct compensation is designed to protect an insured car if property damage occurs. The only situation where this policy might apply is if the insured is not at-fault for the incident which caused the damage. To receive your fair settlement, certain conditions must be met. The accident must have involved multiple vehicles, have occurred in your own province,, and one of the vehicles (at least) that were involved must be participating in the province’s vehicle insurance system.

This coverage, also referred to as underinsured automobile coverage, is designed to protect yourself and your passengers if you are involved in a collision with an at-fault driver who is found to be either underinsured or entirely uninsured. This coverage also applies with hit-and-run accidents and is designed to cover car repair costs, lost wages, and medical expenses as a result of injuries.

Should you, another driver, either of your passengers, or a pedestrian on the street be in need of medical assistance following an accident where you may or may not have been at-fault for the collision, accident benefits coverage can come in handy. This protection includes compensation for medical expenses pertaining to an injury suffered in the event, such as costs for physical therapy and rehab, as well as loss of income.

Regardless of whether the accident you were involved in was with another vehicle or an object on the road, and regardless of who was at fault, having an optional coverage known as “collision coverage” can help cover the resulting repair costs. Under this portion of your policy, your insurer may help pay for the inflicted property damage costs.

For further peace of mind, Newfoundland and Labrador drivers may elect to purchase a specific kind of optional coverage known as comprehensive coverage. Your other coverages may insure you if you were to get into a collision with another vehicle or object, but what about non-collision damages? What about hail, fire, theft, and vandalism? Comprehensive coverage may insure your vehicle against a broad array of non-collision events causing damage. If your vehicle was stolen out of your driveway, standard insurance wouldn’t cover you - but comprehensive insurance would.

This last type of optional coverage is available from multiple insurers in Newfoundland and Labrador and is designed to preserve your driving record, even following an at-fault accident. With this endorsement, insurance companies may waive your first at-fault accident and won’t increase your premiums as a result. This won’t stop your premiums from increasing for other reasons, but they won’t be affected by the initial accident.

If you're buying a new car, adding this coverage to your policy is worth considering. It ensures you're covered for the full value of your vehicle without factoring in depreciation. That means if your car is stolen or totalled, you'll be reimbursed for the cost of a brand-new vehicle—not just what it's worth after wear and tear.

If you ever get into an accident and your car needs repairs, loss of use coverage has your back. While your car is in the shop, this coverage helps pay for other ways to get around—whether that's hopping on public transit, using ride shares, or renting a car. It can be a real lifesaver, especially if your car ends up being out of commission for days or even weeks.

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How to save money on Newfoundland and Labrador car insurance

Drivers should never overpay for car insurance. That is why the BrokerLink team is dedicated to assisting Newfoundland and Labrador drivers with finding competitive and affordable policies. With the help of our knowledgeable insurance advisors at BrokerLink, you will be saving money in no time. BrokerLink knows the ins and outs of the car insurance industry, thus enabling us to shop around and compare several insurance auto insurance quotes to get you the lowest insurance rates. Check out our top money-saving tips for car insurance below:

Discounts

Install winter tires on your car

Another great money-saving tip is to Install winter tires on your vehicle. Just by installing them on your car, Newfoundland and Labrador drivers might be eligible for an auto insurance discount of up to 5%. Insurance companies recognize that snow tires have superior capabilities during the winter, so if you have them installed during the cold months, it reduces your odds of getting into an accident. If you are interested in learning more about a winter tire car insurance discount, speak to a BrokerLink advisor today.

Buy a hybrid or electric vehicle

Another great tip is to buy a hybrid or electric vehicle (EV). Many auto insurance companies in Newfoundland and Labrador offer discounts to drivers of hybrid or EVs as a way of encouraging drivers to go green. Just by owning an EV or hybrid, you could save up to 10% on your auto insurance policy.

Enroll in driving school

Lastly, enrolling in an approved Newfoundland and Labrador driving school is one final way for young drivers specifically to save money on auto insurance. There are recognized driving schools all over the province, and graduating from one can help you receive significant savings. Insurance companies recognize learning to drive from a professional makes you a more responsible driver, thereby decreasing your odds of getting into an accident.

Savings Options

Increase your policy deductible

As a general rule, increasing your insurance policy deductible lowers your insurance premium. For anyone unaware, a deductible is how much money the policyholder is responsible for paying toward an insured loss before the insurer covers the rest (up to your policy limit). All insurance policies have a deductible, and it’s up to you to decide what yours will be. While increasing it, even by as little as $500 or $1,000, will likely reduce your rate, however it is important to not make your deductible higher than you would be able to reasonably afford in the event of a claim. Contact BrokerLink to speak with an insurance advisor and learn more about the effects of increasing your Newfoundland and Labrador auto insurance deductible.

Pay yearly rather than month-by-month

Another way to save money on car insurance is to pay for your policy in one lump sum. Most insurance companies allow you to pay in either one annual or semi-annual instalment, or you can pay an instalment month-by-month. While the latter is tempting, the issue with paying twelve times per year is that many insurers will slap an additional fee on each payment, known as administrative fees. For this reason, paying for your policy once a year typically ends up being cheaper than paying a small amount every month.

Purchase multiple policies through a single insurer

Our next tip for saving money on Newfoundland and Labrador car insurance is to bundle. Insurance providers like rewarding loyal customers. This means that policyholders who purchase multiple policies from them may be eligible to save up to 15% per policy. So if you are looking to buy more than one policy, like home insurance, business insurance, property insurance, commercial insurance or even boat insurance, try bundling them together with an insurance agency that sells several types of insurance. Or, if you have several cars insured with different companies, ask BrokerLink about moving them all to one insurer to take advantage of our multi-car discounts.

How auto insurance companies determine car insurance premiums in Newfoundland and Labrador

In Newfoundland and Labrador, insurance providers consider a multitude of factors when calculating auto insurance premiums. Thus, it may be beneficial for Newfoundland and Labrador motorists to understand which details insurers consider. That is why the BrokerLink team has created a list of key factors impacting car insurance premiums in Newfoundland and Labrador below:

Where you live (and work - if you drive to work)
Age
Make, model and year of the vehicle
Claims history
Annual mileage
Driving experience
Driving record
Prior insurance coverage
Your deductibles
Local laws
Weather related incidents
How you use your vehicle
Gender
Marital status

Tips for young drivers in Newfoundland and Labrador

Learning how to drive is a lot of responsibility that can be stressful and overwhelming. As a young driver in Newfoundland and Labrador, it’s crucial to understand the rules of the road so that you can learn how to be a safe and responsible driver. That is why BrokerLink has put together a list of helpful tips to help:

Slow down

This is one of the most important driving tips - no matter your age. The more cautiously you drive, the less likely you are to get into a collision because driving slowly gives you more time to react. Always follow the speed limit and never drive beyond it. Also, never rush when accelerating, braking, turning, parking, or changing lines. Furthermore, you should also slow down anytime you are driving during inclement weather like fog, rain, or snow, at night when visibility is reduced or through a construction zone.

Leave ample space

Our second tip is to leave ample space around you. We recommend leaving two car lengths of space between your vehicle and the vehicle in front of you on a regular road and four car lengths on a highway. Doing this can help prevent an accident if you need to stop suddenly by giving you more time and space to react. It will also help prevent you from colliding with anything in front of you if you are rear-ended.

Minimize distractions

Minimize distractions while on the road. Always. It can be tempting to text your friend back while driving (which is also illegal, by the way) or snack on some french fries that you just picked up in the drive-thru, but doing so instantly increases your odds of getting into an accident. Therefore, put your phone away and decide on a radio station before taking the car out of park. As for eating, either park before eating your food or wait until you get home. This way, you can guarantee that all of your focus is on the road.

Compare rates with licenced Newfoundland and Labrador insurance brokers

By doing all of the nitty-gritty work for you, insurance brokers make shopping for insurance and comparing quotes hassle-free. Our fully-licenced insurance brokers at BrokerLink help our customers save time and money. We have the experience necessary to get you the best policy, and we pride ourselves on providing unbiased, professional advice. When you have a BrokerLink insurance advisor compare rates on your behalf, you can rest easy knowing you are in good hands.

Here are a few reasons why you should consider partnering with a registered Newfoundland and Labrador insurance broker.

Brokers operate independently of insurance companies

By operating independently of insurance companies, insurance brokers can make their customers a top priority. Upon reaching out to BrokerLink, you will be matched with a dedicated insurance advisor. Their priority is to get to know you so we can understand your needs and create a policy that makes you feel comfortable.

Brokers do the work for you

Another reason is that insurance brokers do everything for you, so you don't have to lift a finger. Insurance brokers offer a convenient service. We will contact several of Newfoundland and Labrador’s top insurance companies, compare quotes and unlock various discounts, all on your behalf.

Brokers are insurance experts

Since 1991, the BrokerLink team has been dedicated to finding insurance policies that meet the needs and budgets of our customers. We are experts in all things Newfoundland and Labrador insurance and can ensure you receive the most competitive rate on your policy.

We are in your community

Getting involved in the community is a big part of who we are. We take pride in your community because we live there too! We love meeting our neighbours!

Contact Brokerlink for a free car insurance quote in Newfoundland and Labrador

Do you want to learn more about Newfoundland and Labrador insurance? BrokerLink can help. Whether you want to insure your home, car, business, recreational items or pets, let us help you find the best coverage possible.

You can reach us by phone, email or in person at any one of our locations throughout Newfoundland and Labrador. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you.

We also invite Newfoundland and Labrador drivers to take advantage of our online auto insurance quote tool. BrokerLink offers free quotes to all Newfoundland and Labrador residents. Simply provide us with some basic information about yourself and your vehicle, such as the make and model, and we will get back to you with an accurate and competitive quote in minutes. Protect yourself with Newfoundland and Labrador car insurance by contacting BrokerLink today.

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