Do you want to know how much is car insurance in Prince Edward Island and what are the mandatory car insurance coverages in Prince Edward Island ?
You've come to the right place!
In this guide, we will tell you everything you need to know about car insurance in Prince Edward Island : cover features, tips to save money as well as cheapest car insurance companies for your car in Prince Edward Island .
Let's dive in!
How does car insurance work in Prince Edward Island ?
In Prince Edward Island, from the moment you own a vehicle, you must insure it through a private insurer. In Prince Edward Island, you purchase your policy from a private company. This insurance certificate indicates the level of protection for which you have opted, the optional guarantees chosen, the period of coverage.
PEI works with a no-fault system, it means that you have to deal first with your insurance company for your claims, regardless of whether or not you’re at fault. Two case study:
- You're at fault : your insurance company won't pay anything unless you took the optional coverages : collision, comprhensive depending on the claim.
- You're not at fault : your insurance will pay under the DCPD coverage.
Let's see in details what are the different coverages mandatory or not.
You are about to apply for a car insurance to drive in your area? Never forget to compare best car insurance plans in Canada upfront, and weight pros and cons of what each car insurer offers.
Compare the 10 best car insurance plans in Canada
What are the different car insurance in Prince Edward Island ?
In Prince Edward Island , there are several car coverages that are mandatory by law:
This insurance is compulsory and covers you for:
- Material damage and bodily injury caused to others by your fault
- The minimum mandatory amount is 50 000 $
Statutory accident benefits coverage
This insurance provides protection for 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.
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 Prince Edward Island
- Another vehicle must be involved
- The other vehicle must be insured by a licensed insurer
- 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.
This little table recapitulates well which car insurance coverage is mandatory in Prince Edward Island .
|Car insurance coverages||Required?|
|Direct Compensation Property Damage||Yes|
What are the optional auto insurance coverages in Prince Edward Island ?
Here are all the options you can add to your car insurance to be best protected:
Collision car insurance in Prince Edward Island
This auto insurance protects you in the event of a collision of your vehicle 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 in Prince Edward Island
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, 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 in Prince Edward Island
It covers you for risks that you have specified in the contract. For example, you can mention glass breakage but not include vandalism, theft but not include fire.
All-risk car insurance in Prince Edward Island
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 are the other options that you could add to your car insurance in Prince Edward Island ?
Here are the options you could add to your car insurance in Prince Edward Island , most of the car insurance companies propose this:
|Options||Details||Availability in Prince Edward Island|
|Leased vehicule||Your rental vehicle will be insured in the same manner as your insured vehicle(s).||Yes|
|Accident Forgiveness||Your first accident won't increase your car insurance premium||Yes|
|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.||Yes|
|Alternate Transportation Benefits||Also known as loss of use of the vehicle, this covers the cost of rentals, transportation, cabs that you had to take during the period when you were unable to use your vehicle.||Yes|
|Emergency roadside||if you are out of gas, stuck, have a cracked wheel, the road assistance is there for it.||Yes|
How much is car insurance in Prince Edward Island ?
In Prince Edward Island , there are a number of factors to consider when determining the price of your car insurance.
The price of car insurance in Prince Edward Island is based on several factors such as:
- Your age
- Your sex
- Your driving record, i.e. your driving history
- Your permanent address: it won't be the same price if you live in a crowded city or in the countryside.
- The type of vehicle you drive: depending on the vehicle you drive, your premium will increase or not. If it is a really a model that can be easily stolen, your premium will get higher. If you drive one of the most stolen cars, it is quite sure that your premium will tend to be higher.
- The use you make of your vehicle: are your journeys to and from work daily, for example? Do you use your vehicle for business purposes?
- The number of people insured on your car insurance and their driving level
- The date you obtained your driver's license
- Third party liability: did you choose $1,000,000 third party liability? More? Less? This changes your premium a lot.
- The optional coverage: did you add accident forgiveness for example? Roadside assistance? Same, this impacts your premium.
Before subscribing any car insurance plan in Prince Edward Island , do not forget to compare best car insurance plans and pick the best option for you.
Compare the 10 best car insurance plans in Canada
Car insurance quotes Prince Edward Island
On average, car insurance in PEI is less expensive than other provinces in Canada.
According to the IBC, car insurance PEI average premium is 816 $ per year, so it is one of the cheapest proivince in Canada for car insurance.
What are the best discounts offered by car insurances in Prince Edward Island ?
Prince Edward Island auto insurers offer many discounts to save money on your insurance. Here are some of the best discounts known:
- Young driver discounts
Many insurers offer discounts for young drivers because the insurance premium for young people is quite high.
- Group discount
You can benefit from a discount if you are part of a group, this can be members of an association, employees of the same company etc.
- Discount for experienced drivers
You can get a discount if you have a good driving record and are over 50 years old.
- Discount for combined policies
You can get a discount by combining your car and home insurance for example, the discount is often between 5% and 15%.
- Discount for winter tires
It's snowing in Prince Edward Island ! That's why insurers often offer a discount if you add snow tires to your vehicle.
- Retiree discount
You may be eligible for a 15% discount on Accident Benefits
- Renewal Discount
Your loyalty can be rewarded by some insurers, if for example you have been with them for many years without having caused any accidents. You may also be eligible for other discounts depending on the auto insurers in Ontario:
- Low mileage
Adding security to your vehicle
9 ways to get cheap car insurance in Prince Edward Island
Here 9 tips so save on your car insurance in Prince Edward Island :
- Bundle your policies: you could easily get a discount if you buy car and home insurance at the same insurer.
- Shop and compare to get the best deal. Never auto renew.
- Choose the right amount of deductible: if you choose a low deductible, your car insurance premium will go high. So choose high deductible if you want to lower your car insurance premium.
- Choose the coverage you need. For example, if you drive a really old car, maybe you should't have a very complete car insurance.
- Pay annually: this will avoid to pay the rate fees to pay monthly.
- Security-device: you should install safety devices on your car, you could enjoy discounts!
- Have a good driving record: the best you drive, the lower you'll pay.
- Install a telematic device: this tool will register your driving behavior and your car insurance premium will be adapt to your kind of driving. So, if you're a safe driver, and you want to save money on your car insurance, go for it!
- Don't hesitate to use the discounts we have just listed, depending on your situation. For example, if you're a student, you will find interesting discounts for you.