Car Insurance in Newfoundland: How to get the cheapest plans?
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Did you know almost 80% of the population in Newfoundland own vehicles? This translates to nearly 400,000 registered cars annually. With more cars on the road, there's an increased likelihood of accidents and claims. Therefore, having a good car insurance Newfoundland plan is critical.
In this guide, we tell you everything you need to know about Newfoundland car insurance: how it works, the mandatory coverage, the costs, and more.
We also tell you about the top car insurance companies in the province and the best ways to get cheap car insurance Newfoundland plans.
Car Insurance Newfoundland and Labrador
- Car insurance is mandatory, regulated by private companies.
- Average Newfoundland Car Insurance is $1,168/year
- No-fault system for property damage since January 2020.
- Three mandatory coverages: liability, uninsured driver, DCPD.
- Age doesn't affect premiums due to 2004 auto insurance reform.
How does car insurance work in Newfoundland?
In Newfoundland, having car insurance is mandatory for drivers. Unlike some other provinces, car insurance in Newfoundland is provided entirely by private companies. However, these rates are regulated by the Newfoundland and Labrador Board of Commissioners of Public Utilities.
Traditionally, Newfoundland has followed a tort system, where an innocent driver involved in an accident can sue the at-fault driver for damages. But since January 2020, Newfoundland has transitioned to a no-fault system for property damage.
This means that regardless of who's at fault in a collision, each driver deals with their insurance for property damage. However, for injuries like medical expenses or lost wages, Newfoundland still operates under the traditional tort system.
What is mandatory car insurance in Newfoundland?
Newfoundland and Labrador requires drivers in the province to have three types of coverage:
- Third-party liability
- Uninsured or unidentified driver
- Direct Compensation for Property Damage (DCPD)
Below is how each type of mandatory coverage works.
| Insurance type | What it covers |
|---|---|
| Third-party liability ($200,000 minimum) | Damage or injury you cause to others and their property while driving |
| Uninsured or unidentified auto insurance | If you're involved in an accident with a driver that is uninsured or cannot be identified |
| Direct Compensation Property Damage (DCPD) | If you're in an accident that is not your fault, your insurer is responsible for paying for the damage to your car |
Expert advice
Quality insurance coverage becomes even more valuable because the cost of injuries in Newfoundland can be substantial. To protect yourself fully, it’s worth considering getting accident benefits coverage and increasing liability insurance to $2 million.
How much is car insurance in Newfoundland?
The average car insurance cost in Newfoundland is $1,168/year, or $97.33 per month, which is not far from the average cost of car insurance in Alberta, at $1,316 per year. Normally, more people and more cars mean more expensive insurance, but for a relatively small population, NL has expensive insurance rates.
Good to know
The average car insurance Newfoundland cost is higher than the Canadian average. Neighbouring provinces Quebec and Nova Scotia enjoy much lower rates at $717 and $891 respectively.
How is Newfoundland car insurance calculated?
Car insurance companies in Newfoundland use a variety of factors to determine their premiums. However, NL differs from other provinces in that the 2004 auto insurance reform forbids insurers from influencing their rates based on the following elements:
- Your age
- Your gender
- Your marital status
- The age of the vehicle
- Previously denied coverage or lapses in insurance coverage (except when related to a license suspension)
- Accidents for which you were not at fault
Auto insurance companies in NL will, however, use the following factors to determine your premium:
- Your driving record and experience
- How often and how far you drive
- Your postal code
- The value, make and model of the insured car
- Accidents in which you were at fault
- Your level of coverage and deductibles
Expert advice
To secure cheap car insurance in Newfoundland, always be sure to compare quotes and negotiate before the automatic policy renewal each year.
Car Insurance Newfoundland Quotes
The average cost of car insurance in NL can widely differ from how much it’ll cost you. If you shop around, you might get the cheapest insurance in Newfoundland. You will need to get a car insurance quote for your specific situation, considering your vehicle and profile, to know how much car insurance will cost you in Newfoundland.
Here is an example of two car insurance quotes in Newfoundland, using two of the most common cars in the province. You can see for yourself how much things can change from situation to situation.
- In the table below, driver A got an auto insurance quote for St John's, NL, which was almost double what driver B got for Corner Brook. Coverage is similar except that driver A has a new vehicle that they’re financing and added a waiver for depreciation as well as accident forgiveness.
| Driver | Driver A, 22 years of driving experience | Driver B, 18 years of driving experience |
|---|---|---|
| Vehicle | 2022 Toyota Rav4 LE 4DR AWD | 2015 SUBARU XV CROSSTREK TOURING 5DR AWD |
| Lives in | St John’s, NL | Corner Brook, NL |
| Drives | 15,000km per year | 10,000km per year |
| Coverage |
|
|
| Month per month | $186.58 | $98.33 |
| Cost per year | $2,239 | $1,180 |
Car insurance quotes vary from one province to another and you must get personalized quotes and compare them. You can use our free tool below to compare free quotes from Canada's best car insurance companies based on your province.
Compare Canada's best car insurance plans
What is the best car insurance in Newfoundland?
The best car insurance depends on your unique needs, coverage requirements, and your budget. However, here are the top car insurance companies that offer the most diverse coverage options to suit every need and quality service to customers.
TD Car Insurance Newfoundland
- Easy website and free quotes online
- Customize your premiums based on your driving habits
- Save 5% when you quote and buy car insurance online.
- Get up to 15% for bundling car and home insurance
- Get discounts for driving hybrid vehicles
- Multi-vehicle discount
Economical Car Insurance
- Caters to drivers facing challenges
- Strong protection against legal actions
- Round-the-clock emergency roadside assistance
- Customizable coverage to fit your specific requirements
- Save up to 15% by bundling your auto and home insurance
RBC Car Insurance Newfoundland
- Quick quote online or over the phone
- Satellite Program for towing and repairs
- Manage policies online
- Save up to 10% by bundling car and home insurance
- Towing and tire expertise
- Fuel, battery jumps, locksmith access
CAA Car Insurance - Atlantic
- Offers coverage through Munn Insurance
- Save up to 20% off if you're a CAA member
- Local, fast and efficient 24/7 Claims Service
- Loyalty discounts for long-term members
- New vehicle 30-month depreciation waiver
What is optional auto insurance coverage in Newfoundland?
Beyond the mandatory coverage, providers of car insurance in Newfoundland also offer optional coverage. Here are the most common optional coverages for car insurance in Newfoundland:
| Insurance type | What it covers |
|---|---|
| Accident benefits | Medical expenses for drivers, passengers and pedestrians, regardless of fault, as well as income replacement and possible funeral costs. |
| Collision | Your car when you hit another car or object. |
| Comprehensive Car Insurance | Losses from anything that is not a collision, like vandalism, glass breakage, theft or bad weather. |
| Specified perils | Financial losses from risks that you specifically detail in your policy. For example, you can choose theft but not glass breakage. |
| All perils | The ultimate protection by combining collision and comprehensive coverage. |
Endorsements
Endorsements (otherwise known as SEFs) are coverage enhancements or conditions you can add to your existing insurance policy that may make sense in your financial situation or for your risk profile depending on the value of your car. Here are a few common endorsements used in Newfoundland:
- SEF 19 - car coverage is based on actual cash value as opposed to its replacement cost.
- SEF 20 - coverage for the cost of renting a car while yours is being repaired.
- SEF 39 - forgiveness of your first accident claim so it doesn't impact your premium.
- SEF 40 - a deductible is charged in the case of fire or theft.
Good to know
Although car insurance in NL can be confusing, your broker or agent will be able to explain and help you determine the coverage that best suits your situation to make sure you get the lowest insurance rates.
How to get cheap car insurance in Newfoundland?
Here are 10 great tips to get the cheapest insurance in Newfoundland:
- Tip 1: Discounts. You can get a lower rate for being a university alumnus or working for a company. It’s worth asking your insurer!
- Tip 2: Deductible raises. It’s easier to pay less money, but a lower deductible might be hurting your wallet long-term. By increasing your deductible, you can generate savings that will make up the difference after just a couple of years.
- Tip 3: Private parking. Parking in a garage is safer – any insurer’s favourite word. It’ll save you money on your premium.
- Tip 4: Car alarm. Installing security features helps lower premiums.
- Tip 5: Good driving record. Demerit points and at-fault accidents will push up your rates, especially if you’re getting a new policy.
- Tip 6: Telematics app. Driving with your insurance company's mobile app can save you some big bucks in Newfoundland. The app records how you drive and adapts your insurance rate accordingly.
- Tip 7: Payment in full. If you can manage, paying yearly instead of monthly will usually earn you a discount.
- Tip 8: Home and auto insurance bundle. Add a home insurance policy or multiple vehicles under the same household to save.
- Tip 9: Winter tires. You’ll save at least 5% with most insurers simply by adding winter tires to your car in the colder months. It’ll also keep you safer!
- Tip 10: Personalization. Adapting your policy to your needs will help you save.
Expert advice
Always remember to check and compare several insurance providers to get the cheapest car insurance.
You can try our free comparator tool below to explore the best deals on car insurance from Canada's best providers based on your province.
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Who can drive my car under my insurance in NL?
If you permit them, anyone with a driver’s license can drive your car in NL. They will be covered under your auto insurance policy. So if you want to lend your car to a family or friend, go ahead, even if they are from outside the province. However, if that person gets into an accident with your car, it’s your driving record and insurance rates that are affected.
Good to know
If you lend your car to someone regularly, you should add them to your policy as a secondary driver. If they are a new driver, this might even get them discounted rates if they ever choose to become the primary driver of a policy.
How much is insurance for a new driver in Newfoundland?
A new driver in Newfoundland can expect to pay anywhere from around $300 per month, or $3,600 per year, for basic coverage and up to $500 per month, or $6,000 per year, for more comprehensive coverage.
Finding affordable car insurance for a new driver can become a little tricky. But not being able to use your age to determine your rate still means new drivers can usually expect cheaper car insurance in NL than in many other Canadian provinces!
Although insurers cannot rely on your age to calculate their rates, they do prefer drivers with more driving experience. Typically, if you’ve driven for more than eight years, you’re usually entitled to a special bonus. NL auto insurance companies also reward long-time drivers who are conviction and claims-free by offering them lower rates.
Expert advice
Being listed as a secondary driver on a parent or partner’s policy is cheaper than being a new primary driver. And you gain experience as a driver, so if you ever become the primary driver of a policy, you’ll be saving some money.
FAQs on Newfoundland Car Insurance
How does commercial car insurance in Newfoundland work?
Commercial car insurance in Newfoundland is specifically designed for vehicles used for business purposes rather than personal use. This type of insurance provides coverage for a range of situations that are common in business operations, such as making deliveries, transporting goods, or driving clients to meetings.
Commercial car insurance typically includes liability coverage, which protects your business in case you're responsible for damages or injuries to others while using the vehicle for business purposes. It also covers damages to the vehicle itself, medical expenses for you and others involved in an accident, and sometimes even coverage for employees who drive the vehicle.
Having commercial car insurance is essential for any business that relies on vehicles to conduct its operations. It helps protect your business financially and ensures that you're compliant with legal requirements while using vehicles for commercial purposes in Newfoundland.
Good to know
Read our full guide on commercial car insurance to learn all you need to know.
Can you get temporary car insurance in Newfoundland?
You have the option to obtain short-term or temporary car insurance policies in Newfoundland, which can last from as little as one day to as long as six months.
Temporary car insurance in Newfoundland provides flexible coverage for short-term needs like borrowing a friend's car, renting a vehicle, or using a car temporarily. It offers similar coverage to regular insurance, including liability, collision, and comprehensive coverage. You can typically arrange coverage quickly over the phone, making it convenient for temporary situations.
What is the fine for driving without insurance in NL?
The fine for driving without insurance in Newfoundland and Labrador can vary, but typically it ranges from $2,000 to $5,000 for a first offence. Additionally, driving without insurance can result in other penalties such as license suspension, vehicle impoundment, and increased insurance premiums.
How long do violations stay on my driving record in Newfoundland and Labrador?
Violations stay on your driving record in Newfoundland and Labrador for a specific period. The province operates on a demerit point system where accumulating 12 demerit points can lead to license suspension. However, points for any offence are automatically removed from your record two years after the date of conviction.
What does R mean on your license in Newfoundland?
In Newfoundland and Labrador, the "R" on a driver's license means "Restricted." It means there are special conditions or limitations on the license, like restrictions on the type of vehicle or when they can drive. These restrictions are based on factors like driving abilities or medical history.
