Compare Newfoundland Car Insurance Quotes | Ratehub.ca (2024)

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In Newfoundland and Labrador, car insurance is mandatory and provided by private insurance companies and brokers. The Digital Government and Service NLhelps to regulate and resolve disputes for Newfoundland insurance.

Auto insurance in Newfoundland uses a no-fault system. No-fault means you can still be found at fault, but that you'll only ever deal with your own insurance company for claims. It expedites the claims process and dissuades people from taking legal action.

All the insurance companies in Newfoundland require drivers to have 3 types of car insurance, they include:

• Third-party liability - Protects against damage you cause while driving, both injuries and property.
• Accident benefits - Covers medical benefits following a traffic accident, regardless of who's at fault.
• Uninsured motorist - protects against injuries you and your family sustain in a collision with a driver who has no insurance.
• DCPD - Allows insured drivers to be compensated by their own insurer for property damages resulting from an automobile collision caused by another party. (As of Jan 1, 2020)

You can also buy optional car insurance coverage to enhance your protection, including:

• Collision - Pays to repair or replace your vehicle after an at-fault crash.
• Comprehensive - Protects your car from theft, vandalism, and the effects of bad weather.
• All Perils - Combines collision and comprehensive, and adds extra protection in case someone you know steals your car.
• Specified perils - You can name specific risks and get coverage for perils like lightning, flood, or fire.

Finally, Newfoundland insurance also offers endorsem*nts to modify your policy.

• SEF5 - Loss of use - Insurance will pay for your rental car while your car is being repaired following a claim.
• SEF27 - Damage liability for non-owned automobiles - This allows you to port your existing coverage onto a rental car (and avoid paying rental car insurance).
• SEF39 - Accident forgiveness - Protects your driving record from one collision increasing your rates.
• CAE5 - Minor conviction waiver - One speeding ticket won't affect your insurance rates.

Drivers in Newfoundland and Labrador pay some of the highest car insurance rates, on average, in Canada. The auto insurance rates are governed by theNewfoundland and Labrador Board of Commissioners of Public Utilities. They review and report on issues as they relate to car insurance, including why there are increasing claims costs and methods to help reduce these costs.

Due to the province’s relatively expensive auto insurances pricing, it is imperative to compare car insurance quotes to ensure you’re getting the best policy to suit your needs. In fact, citizens of Newfoundland and Labrador are encouraged to compare rates and consult with industry experts before finalizing their car insurance policy.

Informed consumers help to create a more competitive market, which often leads to both better rates and service from car insurance providers.

To get the cheapest car insurance in Newfoundland, one way to achieve low rates is to take a driver's ed course while getting your license. It's a great method for young drivers to reduce car insurance premiums.

Since 1999, Newfoundland has used a Graduated License Program (GLP). The system requires each driver to progress through two educational phases in order to be considered a fully licensed driver. Once you’ve successfully completed the program, you can legally operate a car. Let’s take a quick look at graduated license program approach: