Save on auto insurance in Newfoundland.

In Newfoundland and Labrador, individual insurers set auto insurance rates, which are then regulated and approved by the Newfoundland and Labrador Board of Commissioners of Public Utilities. Among the top factors that go into determining your rate are your driving record including tickets or at-fault accidents, the value of the car you drive as well as the make and model, and your driving habits including the length of your daily commute.

Auto insurance rates in Newfoundland and Labrador are determined by a variety of factors:

• Your driving record
• The type and age of your car
• Your insurance claims record
• Your annual mileage and territory of use
• How you use your car (personal or business)
• Whether or not any other drivers in the household use your car

The 2004 auto insurance reform prevents auto insurance companies from denying coverage or increasing rates solely on the basis of any of these factors:

• Age and gender
• Age of the vehicle
• Accidents in which you were not at fault
• Lapses in insurance except when tied to a license suspension for a violation of traffic laws
• Previously being refused insurance by another company
• Being insured with Facility Association

Newfoundland and Labrador auto insurance premiums fall in the lower half of the national rate spectrum.

• Ontario $1445
• British Columbia $1680
• Alberta $1251
• Manitoba $1080
• North West Territories $978
• Nunavut $963
• Nova Scotia $847
• Saskatchewan $936
• New Brunswick $819
• Prince Edward Island $796
• Quebec $661

Source: Insurance Bureau of Canada, 2017 and 2016 for Quebec

Auto insurance rates in Newfoundland and Labrador are on the lower side of the spectrum thanks, in large part, to the reforms enacted by the government in 2004. These auto insurance reforms helped reduce rates across the province. But according to the Insurance Bureau of Canada, additional reforms are necessary to maintain rate stability. Problems that allow for large pain and suffering awards for relatively minor injuries continue to exist in the province’s auto insurance system.

There are many ways to get cheap auto insurance in Newfoundland and Labrador:

• Work with an independent broker who can help you find the best policy
• Always pay your premiums on time
• Choose a vehicle with less susceptibility to theft
• Choose a vehicle with more safety and security features
• Maintain a good driving history
• Obey the rules of the road and avoid speeding tickets
• Understand and choose the right type of insurance coverage
• Shop around for the best policy

Yes. The law requires motorists to carry insurance on their vehicle.

If you’re convicted of driving without insurance in Newfoundland and Labrador, you’ll have to pay a fine that ranges from $2,000 to $4,000 for your first offence. The fine increases to a range of $3,000 to $5,000 for second and subsequent offences. And there are other penalties that may accompany your fine. If you’re charged for driving without insurance in Newfoundland and Labrador, you may also have your driver’s license suspended and your vehicle impounded for 90 days.

Newfoundland and Labrador operates under the tort system. This lets you sue an at-fault driver for your pain and suffering, wage losses, and other damages related to an accident.

In Newfoundland, the adjusters for the insurance companies involved in the claim will determine who is at fault. Each insurance company uses its own guidelines to come up with a fault determination.

Newfoundland is unusual in Canada in that it has no type of no-fault benefits. The insurance company for the at-fault driver is responsible for paying out on damages to the other driver’s vehicle as well as for injuries. Accident benefits are not a mandatory coverage in Newfoundland but are available to drivers who choose to add them to their insurance policy.

The handling of claims is governed by insurance regulations; the 2004 reforms helped to reduce the cost of lawsuits, but drivers can still be sued for pain and suffering.