Car insurance in New Brunswick: Coverage and Cost in 2024
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Discover the methodologyCar insurance in New Brunswick is mandatory for all drivers. But how does it work? What coverage is mandatory? What does it cost? We've got you covered.
In this guide, we will tell you everything you need to know about car insurance in New Brunswick: mandatory coverage, optional add-ons, tips to save money as well as how to find the cheapest car insurance for your vehicle. Let's dive in!
Car Insurance New Brunswick: 5 key takeaways
- Mandatory coverage includes liability and accident benefits among others.
- Optional add-ons like collision and comprehensive are available.
- The average car insurance premium in New Brunswick is $867 per year.
- Driving without insurance can lead to hefty fines.
- Top providers include TD Insurance, Intact, Aviva, CAA, and more.
How does car insurance in New Brunswick work?
In New Brunswick, from the moment you own a vehicle, you must insure it through a private insurer. New Brunswick mandates that all drivers carry specific types of coverage to ensure financial and legal protection on the road.
Here's a list of the mandatory coverages:
- Third-Party Liability: Protects you if someone else is killed or injured, or their property is damaged in an accident, and you're held responsible.
- Accident Benefits: Covers medical treatments, rehabilitation, lost income due to inability to work, and funeral expenses, regardless of who's at fault.
- Direct Compensation Property Damage (DCPD): Covers damage to your vehicle and its contents, and loss of use of your vehicle, when another driver is at fault.
- Uninsured Automobile Coverage: Protects you if you're involved in an accident with an uninsured driver or a hit-and-run.
New Brunswick also works with a no-fault system, meaning you have to deal first with your insurance company for your claims, regardless of whether or not you’re at fault. Here's how it works:
- You're at fault: Your insurance company won't pay anything unless you took the optional coverages: collision, comprehensive depending on the claim.
- You're not at fault: Your insurance will pay under the DCPD coverage.
Car insurance premiums work differently across provinces. So, you must explore coverage based on your location. You can use our free tool below to compare car insurance quotes from the best Canadian companies right here for free.
Compare Canada's best car insurance plans
How to get car insurance quotes in New Brunswick?
Drivers in New Brunswick can get car insurance through a broker, agent or directly from an insurer. There are many options.
When you request a car insurance quote, you will need:
- The vehicle’s make and model
- Your VIN (vehicle identification number)
- Your Social Insurance Number
- Driver’s license
- Your previous insurance (if any)
Good to know
Your insurer in New Brunswick may ask you who else will drive the vehicle, where you’ll regularly drive and how much. They will look at your driving record. Demerit points, speeding tickets, previous accidents and insurance gaps will mean higher quotes.
When purchasing insurance it is important to compare because companies sometimes give very different rates. You should consider if you want to add collision or upset and comprehensive coverage in addition to the mandatory insurance.
Beyond that, there are many endorsements to enhance your car insurance policy. If you have a new vehicle you might like a waiver of depreciation which reimburses you for the purchase value of your new vehicle if it is declared a total loss in the first 24 months you have it.
How much is car insurance in New Brunswick?
Car insurance premiums are relatively cheaper in New Brunswick as compared to other Canadian provinces. According to the Insurance Bureau of Canada, the average car insurance New Brunswick premium is 867$ per year, much less than provinces like Ontario and British Columbia.
You can take a look at the table below for car insurance premiums across Canadian provinces.
| Province | Average Annual Premium |
|---|---|
| Quebec | $717 |
| Prince Edward Island | $861 |
| New Brunswick | $867 |
| Nova Scotia | $891 |
| Manitoba | $1,140 |
| Saskatchewan | $1,235 |
| Newfoundland & Labrador | $1,168 |
| Alberta | $1,316 |
| Ontario | $1,528 |
| British Columbia | $1,832 |
How are car insurance premiums calculated in New Brunswick?
In New Brunswick, there are several factors to consider when determining the price of your car insurance. They are:
- Your Driving Record: Fewer accidents and tickets mean you'll likely pay less.
- Your Car: Some cars cost more to insure because they're more expensive to fix or are stolen more often.
- How You Use Your Car: Using your car a lot, especially for commuting, might increase your insurance cost.
- Where You Live: Living in a place with more thefts or accidents can make your insurance more expensive.
- Your Age and Experience: Younger drivers or those new to driving often pay more.
- Your Insurance Choices: Choosing more coverage or a lower deductible (the amount you pay before insurance kicks in) can raise your insurance cost.
It is important to get personalized quotes as car insurance premiums depend on individual factors. You must compare multiple providers before buying a plan. You can use our free tool below to compare the best car insurance providers in Canada and get quotes based on your unique needs.
Compare Canada's best car insurance plans
How much mandatory coverage do you need in New Brunswick?
Third-party liability
This insurance is compulsory and covers you for:
- Material damage and bodily injury caused to others by your fault
- The minimum mandatory amount is $200,000
Good to know
However, many drivers opt for higher limits (such as $1 million or more) for added protection against potential lawsuits.
Statutory accident benefits coverage
This insurance protects bodily injury and:
- Covers you if you are injured in an accident regardless of who is at fault.
- Covers the medical staff involved in the accident: medical care, rehabilitation and auxiliary care services.
- Covers income replacement.
There's no specified minimum dollar amount for this coverage; it is subject to the terms of your policy.
Direct Compensation-Property Damage (DC-PD)
This car insurance covers you for:
- Damage to your vehicle
- Contents in your vehicle
There are a few conditions:
- You must not be responsible for the accident
- It must have taken place in New Brunswick
- Another vehicle must be involved
- A licensed insurer must insure the other vehicle
- Your insurance provider pays to repair your car
Uninsured automobile insurance
This insurance applies if you or someone in your vehicle is either injured or killed by an uninsured driver, or by a hit-and-run driver.
- The minimum coverage is $200,000.
What are the optional auto insurance coverages in New Brunswick?
Here are all the options you can add to your car insurance to be best protected:
- Collision car insurance
This auto insurance protects you in the event of a vehicle collision with an object, which can also be the rollover of your vehicle. This insurance covers property damage caused by this accident. For example, if you hit a traffic sign, you will be covered by collision insurance. This coverage is not mandatory.
- Comprehensive car insurance
This insurance protects you for anything that is not collision or upset, as the name suggests, therefore for anything that is vandalism, glass breakage, theft, or fire. If you park your vehicle on the street and when you come back, one of the windows has been broken, you will be able to use this insurance if you have subscribed to it. It is possible to make car insurance estimates to see how much you want to be insured up to.
- Specified Perils Auto Insurance
It covers you for risks that you have specified in the contract. For example, you can mention glass breakage but not include vandalism, and theft but not include fire.
- All-risk car insurance
This insurance is a combination of all other insurances: collision, payout and collision-free. The deductible is the same for all damages. You will thus be protected for all incidents beyond your control (vandalism, theft, fire) but also for incidents resulting from a road accident, collision with an object, or the overturning of your vehicle.
What other options can you add to your car insurance in New Brunswick?
Here are some other options you could add to your car insurance in New Brunswick, most of the car insurance companies propose this:
| Car insurance options | Details | Availability in New Brunswick |
|---|---|---|
| Also known as loss of use of the vehicle, this covers the cost of rentals, transportation, and cabs that you had to take during the period when you were unable to use your vehicle. | Your rental vehicle will be insured in the same manner as your insured vehicle(s). | |
| Accident Forgiveness | Your first accident won't increase your car insurance premium | |
| Replacement value for total loss | Also known as replacement value, your insurer will compensate you based on the purchase value of the vehicle without taking depreciation into account. | |
| Alternate Transportation Benefits | if you are out of gas, stuck, or have a cracked wheel, the road assistance is there for it. | |
| Emergency roadside | if you are out of gas, stuck, have a cracked wheel, the road assistance is there for it. |
What is the best car insurance in New Brunswick?
Finding the "best" car insurance in New Brunswick is a highly personal choice, influenced by factors like cost, the breadth of coverage, customer service quality, and efficiency in claims processing. However, the following are six leading car insurance companies in the province, each recognized for their extensive coverage options and dependable service.
- TD Car Insurance: Great for a variety of coverage choices and discounts for insuring more than one car, being a loyal customer, or having a safe driving record. TD Car Insurance in New Brunswick is also known for its user-friendly online and mobile services for managing your policy and filing claims. They offer a Claims Free Reward approach that reduces your premiums in return for you not making any claim.
- Intact Car Insurance: Stands out for top-notch customer service and fast claim handling. They offer a range of customizable coverages and discounts if you bundle your policies or use winter tires. You can save up to 25%* off your car insurance premium with my Driving Discount®, a program that rewards good driving behaviour based on your driving habits
- Aviva Canada Car Insurance: Provides essential coverage plus extras like roadside help and rental car insurance. They offer discounts if you haven't made claims, or if you insure more than one car with them. There's also 24*7 customer service.
- Allstate Car Insurance: Over 90 years in the industry and known for offering personalized service through local agents and a broad selection of coverages, including unique options like insurance for your sound system or help after identity theft. They offer discounts for being a safe driver, insuring a new car, or being a senior.
- Co-operators Car Insurance: A Canadian company with a variety of flexible insurance options and discounts for holding multiple policies, showing loyalty, or driving an eco-friendly vehicle. They're praised for their strong customer service.
- CAA car insurance New Brunswick: CAA offers car insurance in New Brunswick through CAA Atlantic. CAA offers competitive rates and you can get a quote online. CAA MyPace, exclusive to Canada and available in New Brunswick and Nova Scotia, offers a unique auto insurance payment program tailored for low-mileage drivers, allowing you to pay only for the kilometres you drive and save on your insurance costs.
What are the best discounts offered by car insurance in New Brunswick?
New Brunswick car insurers offer many discounts to save money on your insurance. Here are some of the most common discounts offered.
- Multi-Vehicle Discount: If you insure more than one vehicle with the same company, you could receive a discount on each vehicle's premium.
- Bundle Discount: Combining your car insurance with other policies, such as home insurance, with the same insurer can lead to savings.
- Safe Driver Discount: Drivers with a clean driving record over a certain period (no accidents, tickets, or claims) may qualify for lower rates.
- Low Mileage Discount: If you drive less than a certain number of kilometres per year, you might be eligible for reduced rates.
- Winter Tire Discount: Using winter tires during the snowy season can earn you a discount with some insurers, recognizing the reduced risk of accidents.
- Anti-Theft System Discount: Installing an approved anti-theft system in your vehicle can decrease your premium.
- New Vehicle Discount: Some insurers offer discounts for insuring a new or newer vehicle that has advanced safety features.
- Student Discount: Full-time students or recent graduates may qualify for reduced rates based on academic achievements or if they're studying away from home.
- Loyalty Discount: Staying with the same insurance provider for several years can sometimes result in savings.
- Telematics Program: Participating in a telematics program, where your driving habits are monitored via a mobile app or a device installed in your car, can lead to discounts for safe driving behaviours.
To maximize your savings, it's essential to ask your insurance provider about all available discounts and how you can qualify for them.
How to get cheap New Brunswick car insurance?
Here are some straightforward tips to help you secure cheaper car insurance in New Brunswick.
- Shop Around: Compare quotes from multiple insurers to find the best rates and coverage options.
- Bundle Policies: Combine your car insurance with other policies (like home insurance) with the same company for discounts.
- Increase Your Deductible: Opt for a higher deductible to lower your premium, but ensure you can afford the deductible if you need to make a claim.
- Drive Safely: Maintain a clean driving record; accidents and violations can increase your rates.
- Take a Driving Course: Completing an approved driving course can sometimes lower your premiums.
- Use Winter Tires: Some insurers offer discounts for using winter tires during the snowy months.
- Reduce Coverage on Older Vehicles: If you have an older car, consider dropping collision or comprehensive coverage if the premium costs more than the car's value.
- Install Anti-Theft Devices: Vehicles equipped with approved anti-theft systems may qualify for discounts.
- Ask for Discounts: Always ask insurers about any additional discounts you might qualify for, such as for being a good student or a retiree.
- Pay Annually: If possible, pay your premium in full annually rather than monthly to avoid administrative fees.
FAQs on New Brunswick car insurance
Can you get temporary car insurance in New Brunswick?
Yes, you can get temporary car insurance in New Brunswick for situations where you might need coverage for a short period, such as borrowing a car, renting a vehicle, or during the transition of buying a new car and waiting to set up a long-term policy.
Temporary insurance can range from a few days up to several months, depending on the insurer's offerings and your specific needs. Check out our guide on Temporary Car Insurance to understand how it works and how you can get the best deals.
How much is car insurance in New Brunswick per month?
Typically, drivers in New Brunswick could expect to pay anywhere from $60 to over $130 per month for car insurance. However, as mentioned earlier, the cost of car insurance varies depending on several factors, including your age, driving record, the type of vehicle insured, and the level of coverage chosen.
What is the fine for driving without insurance in New Brunswick?
In New Brunswick, the penalty for driving without insurance starts at fines between $2,000 and $5,000 for the first offence. Repeated offences could lead to steeper fines, along with possible license suspension, vehicle impoundment, and jail time. Make sure you're covered with the minimum required insurance before hitting the road.
All our guides on car insurance in New Brunswick
