Car Insurance PEI Canada: Best Options for 2024 + Free Quotes

Exploring car insurance options in Prince Edward Island (PEI)? Whether you're an experienced driver or new to the road, having a grasp of your insurance choices is essential.

From mandatory coverage to valuable optional add-ons, there's a wealth of information to navigate. Join us as we delve into the realm of car insurance in PEI.

We'll also provide insider tips on securing the best deals and discounts. To ensure you're not overpaying, utilize our free tool to compare car insurance PEI quotes based on your unique needs right here.

How does car insurance work in PEI?

In Prince Edward Island, car insurance is mandatory and provided by private insurance companies or brokers. The Office of the Superintendent of Insurance plays a key role though.

The Office of the Superintendent of Insurance in Prince Edward Island plays an indirect role in getting car insurance. It doesn’t directly sell insurance, but it oversees the entire insurance industry in the province.

Here's how it fits in:

• Regulation: The Superintendent sets the standards and guidelines that private insurance companies must follow.
• Consumer protection: It ensures insurance companies operate fairly and treat customers right. It also provides resources and information for consumers on insurance matters.
• Rate oversight: While the Island Regulatory and Appeals Commission (IRAC) approves car insurance rates, the Superintendent likely provides it with data and analysis to ensure the rates are fair and reasonable.

Before you choose any policy, compare multiple options using our comparator. It'll not only help you get better coverage but save money, too.

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What mandatory coverage do you need for car insurance in PEI?

In Prince Edward Island, there are four mandatory coverages you need to have by law for your car insurance:

1. Third-party liability (Section A): Covers bodily injury and property damage caused to others (third parties) if you are at fault in an accident. The minimum required coverage is $200,000.
2. Direct compensation property damage (Section A. 1): Covers damage to your own vehicle caused by a collision with an insured driver, regardless of who is at fault.
3. Accident benefits (Section B): Helps you pay for medical and rehabilitation expenses, lost wages and other costs associated with an accident, even if you are at fault.
4. Uninsured automobile coverage (Section D): Protects you financially if you are injured in an accident caused by a driver with no insurance or by a hit-and-run driver (identified as an unidentified automobile).

What optional coverage do you need for car insurance PEI?

PEI offers lots of optional coverages that go beyond the mandatory ones to provide more comprehensive protection for your vehicle and yourself.

Here are some common examples:

• Collision or upset coverage: Covers damage to your car caused by a collision with another vehicle or object or if your car flips over.
• Comprehensive coverage: Covers damage to your car for reasons other than a collision, such as fire, theft, vandalism, hail or falling objects.
• All perils coverage: Combines collision or upset and comprehensive coverage, often with increased theft protection, for the most extensive coverage.
• Specified perils coverage: A more limited version of comprehensive coverage, protecting your car against specific perils named in your policy, such as fire, theft or hail.
• Limited waiver of depreciation: reduces the amount your car's value depreciates when calculating a payout after a claim.
• Accident forgiveness: Prevents your insurance premium from increasing after your first at-fault accident.
• Uninterrupted driving coverage: Helps maintain your good driver discount even if you have a minor at-fault accident.

You can also get roadside assistance, which provides services like towing, flat tire changes and battery jumps if your car breaks down.

How much is car insurance in PEI?

The exact amount for car insurance in PEI will depend on various factors, but it’s more on the affordable side of the spectrum.

PEI has some of the lowest car insurance rates in Canada, thanks in part to reforms implemented in 2004. The average annual premium in PEI is around $816.

Here is how it compares to car insurance rates in other provinces:

Province	Average Yearly Rate
Ontario	$1,505
British Columbia	$1,832
Alberta	$1,316
Newfoundland & Labrador	$1,168
Manitoba	$1,140
Northwest Territories	$978
Nunavut	$963
Yukon	$812
Nova Scotia	$891
Saskatchewan	$1,235
New Brunswick	$867
Prince Edward Island	$816
Quebec	$717

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Hot to get a PEI driver's licence?

PEI uses a Graduated Driver Licensing (GDL) program with three stages before you can obtain a full Class 5 driver's license. Here's what the eligibility criteria for each stage look like:

Instruction permit (Class 7)

This is the first stage, similar to a G1 license. Eligibility criteria require you to meet the following conditions:

• Be at least 16 years old.
• Pass a vision test.
• Pass a written knowledge test on traffic rules and safety.
• Have your application signed by a parent or legal guardian if you're under 18.
• Provide required documents like proof of identity and residency.

Stage 2 (Class 5 learner)

This is similar to a G2 license. Eligibility criteria:

• Hold a valid Instruction Permit (Class 7) for at least six months.
• Complete a certified driver education course (optional but recommended).
• Pass a practical driving test.
• Meet vision standards.

Stage 3 (Class 5 graduated)

This stage offers more driving freedom with restrictions. Eligibility criteria:

• Hold a valid Stage 2 license (Class 5 Learner) for at least one year.
• Be accident and violation-free for the past year (some exceptions may apply).
• Pass a second practical driving test.

Full license (Class 5)

This is the unrestricted driver's license. Eligibility criteria:

• Hold a valid Stage 3 license (Class 5 Graduated) for at least two years.
• Be accident and violation-free for the past two years (some exceptions may apply).

Which company offers the best car insurance in PEI?

Your individual circumstances can influence the cost and type of car insurance you need — and eventually, the option you find best.

That said, here are some leading companies that offer affordable car insurance with great coverage in PEI:

1. Intact: A large Canadian insurance company with a presence in PEI. Intact offers various car insurance products and caters to a wider range of needs.
2. TD car insurance PEI: Part of the TD Insurance group, it offers competitive rates and might be a good option if you already bank with TD.
3. Pafco Insurance: A regional insurance company focused on Atlantic Canada, including PEI. Pafco offers competitive rates tailored to the needs of PEI residents.
4. Aviva Canada: Another national insurance provider with options in PEI. It has various coverage options and competitive rates.
5. Sonnet: An online insurance provider that offers car insurance in PEI. Sonnet caters to tech-savvy drivers who prefer online management.
6. RBC Insurance PEI: Part of the RBC Insurance group, it’s known for its bundled discounts.
7. CAA car insurance PEI: The Canadian Automobile Association (CAA) offers car insurance in PEI through partnerships with insurance companies. CAA members can get additional benefits like roadside assistance.

How to get cheap car insurance in PEI?

Here are some tried and tested ways to help you score cheap car insurance in PEI:

• Be a model driver: Maintain a clean driving record. Avoid traffic violations, accidents and anything that increases your risk as a driver. A clean record is the single biggest factor influencing your premium.
• Increase your deductible: Choosing a higher deductible lowers your premium but requires more upfront payment if you need to make a claim.
• Look for discounts: Many insurance companies offer discounts for various factors. These can include:
  • Being a good student
  • Taking defensive driving courses
  • Bundling car insurance with home insurance
  • Owning a car with certain safety features, like anti-theft systems or airbags
  • Being a member of specific organizations (e.g., CAA)
  • Low annual mileage (if you drive less)

• Consider usage-based insurance (UBI): Some companies UBI programs that track your driving habits through telematics (devices installed in your car). Safe drivers with good habits can qualify for lower premiums.
• Explore all coverage options: While getting the minimum mandatory coverage is tempting, consider your needs. Liability protects others, but comprehensive and collision coverage protects your car in case of theft, damage or accidents you cause.

Also, maintain an older, safer car and a good credit score. And don't settle for the first quote you receive.

Use online comparison tools or contact multiple insurance companies and brokers in PEI. Compare rates and coverage options using our comparator.

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