Basic car insurance protection in Clarenville
Car insurance is mandatory in Newfoundland and Labrador, and that includes Clarenville. Specifically, all Clarenville motorists must have the following four types of coverage in their policies:
Third party liability coverage
Liability insurance covers drivers for costs like legal fees, medical expenses, and repair bills if they get into a car accident that they are responsible for. .
Accident benefits coverage
Accident benefits coverage covers policyholders for the cost of medical bills if they are involved in an accident that causes bodily injury to themselves or another.
Direct compensation - property damage coverage
Direct compensation - property damage (DCPD) coverage will pay to repair your vehicle if it is damaged in a collision that you were not at fault for.
Uninsured motorist coverage
Uninsured motorist coverage can reimburse policyholders for the costs associated with an accident that occurred with an uninsured, underinsured, or unidentified driver.
Extra auto insurance protection for Clarenville drivers
Whether you’re looking to buy one auto insurance plan or multiple auto insurance policies, you may wish to add other types of auto insurance coverage. While not mandatory, there are several types of extra protection, like collision coverage, accident forgiveness coverage, and comprehensive coverage, that can give Clarenville drivers greater peace of mind on the road. We explain how these types of optional coverage work below:
Collision car coverage offers additional protection if you get into an accident that damages your car. For example, if you collide with another vehicle, animal, or object that dents your car and it needs to be repaired, you can file a collision coverage claim and your insurance provider may issue a payout for the cost of the repair, less the policy deductible and up to the coverage limit.
Comprehensive car coverage can protect your car from damage while it is parked. For example, if it is damaged in a fire or an object falls on it, comprehensive coverage can pay for the necessary damages. Depending on the perils included in your policy, you can also receive money to replace your vehicle if it is stolen.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Clarenville is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage and eligibility varies by province.
A step-by-step guide to filing an auto insurance claim in Clarenville
Knowing how to file an auto insurance claim is important, especially since most policyholders are likely to file at least one in their lifetimes. For this reason, the BrokerLink team has put together the following guide to submitting a car insurance claim in Clarenville. By the end of this guide, you will have a much better idea of what to do following your next road incident:
1. Notify your insurance company
The first step is to notify your insurance company as soon as possible following the incident. For example, if you got into a car accident, call your insurance company and let them know right away - ideally within 24 hours but definitely not more than 7 days following the accident. As soon as you get in touch, your insurance company will give you clear instructions on how to proceed with the claims filing process.
2. Start gathering evidence to support your claim
The next step is to start gathering evidence. This evidence will be reviewed by your insurance company and the insurance adjuster. The more evidence you can provide the better, as it can help you by increasing the odds of your claim being approved. Whatever the incident, make sure to take lots of photos and videos in the immediate aftermath. We also recommend jotting down basic information like the date, time, precise location, road conditions, and more. You should take witness statements and exchange contact and insurance information with anyone else involved in the crash. If there was a police report, retain a copy of it. All of this will be valuable information to include when filing your claim.
3. Complete the necessary forms
Next, your insurance company will likely give you some claims forms to fill out. Fill them out in a timely manner and with as much information as possible.
4. Cooperate with the insurance adjuster’s investigation
Once your claim has been submitted, your insurance provider will assign an adjuster to the case. It is the insurance adjuster’s job to investigate the claim and provide a recommendation to the insurance company as to whether the claim should be approved, and if so, how much compensation the claimant should receive. Depending on the amount of evidence provided, the insurance adjuster may not have any questions. But if they do, make sure to be respectful, respond to them quickly, and provide them with whatever additional evidence they are looking for. After their investigation is complete, they will make a recommendation and you will wait to hear from the insurance company with the final decision.
5. Receive a payout from your insurance company (if applicable)
If your claim is approved, all that’s left to do is wait to receive the money from your insurance company. When they notify you to tell you that your claim was approved, they will likely let you know how the money will be sent to you. If the company opts to repair your vehicle instead of paying for a replacement, they will make payment to the mechanic or repair shop working on your vehicle. Some insurance companies issue payouts via direct deposit while others still use cheques. Please note that the entire claims filing process can take 30 days or more.
If you ever need help filing a car insurance claim in Clarenville, be sure to contact BrokerLink. Any one of our car insurance specialists would be happy to walk you through the process of filing a claim and answer any questions you may have.
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BrokerLink loves to give back, and we do this by getting involved in as many social initiatives as possible. We strive to be an active member of the Clarenville community, participating in fundraisers, festivals, and all kinds of local charitable events. Learn more about our business outside of the insurance world by getting in touch today.
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If you’re a member of a group or association, you may be eligible for more discounts.
At Clarenville BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, travel plans, recreational items, or pets, let us help you find the best coverage possible.
You can reach us by phone, email, or in person at any one of our locations throughout Newfoundland and Labrador. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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Auto insurance Clarenville FAQs
Will installing snow tires on my car give me a car insurance discount in Clarenville?
It might. Winter tire discounts are one of the most common types of auto insurance discounts in Newfoundland and Labrador. To qualify, you need to ensure that your vehicle is equipped with snow tires throughout the winter months. Usually, your insurance company will require you to have them installed by a certain date each year. If you abide by this and any other conditions set by the insurer, you will likely receive a discount on your Clarenville car insurance policy. From the insurance company’s perspective, they want to reward behaviour such as this that increases your safety on the road and decreases your odds of getting into an accident.
What is the process for renewing car insurance in Clarenville?
The process for renewing car insurance in Clarenville should not be too complicated, though each insurance company has its own way of doing it. Generally, all you need to do is let your insurance company know that you want to renew your policy for another term after your current policy expires. From there, they will give you your updated premium, if applicable, and you can decide whether to proceed or not. Typically, car insurance renewals can be done over the phone, in person, or even online, and they may take as little as a few minutes. If your policy is expired, it’s still possible to renew but the process might be a bit lengthier. The other thing to keep in mind with expired car insurance renewal is that depending on how long it’s been since your last policy expired, you could have a gap in coverage, which could lead to higher insurance rates. That is why it is always best to renew your policy before it expires.
Do accidents impact Clarenville car insurance rates?
Some do and some don’t. If the accident was not your fault, your premium may not be affected at all. However, if you caused the accident, you will likely see an increase in your rates the next time your policy is up for renewal. This increased premium may remain for years given that most accidents stay on driving records for six years or more. The only situation in which an at-fault accident would not impact your car insurance premium in Clarenville is if your policy contains accident forgiveness coverage, which guarantees that your rates won’t change based on the sole factor of your first at-fault accident.
If I leave personal belongings in my car and a thief breaks in and steals them, does car insurance cover me?
No. Typically auto insurance policies do not cover personal belongings stolen from your car. Basic coverage does not cover theft at all. But if you add extra protection in the form of comprehensive coverage, you can be protected if your entire vehicle is stolen. In this scenario, your insurance policy would help cover the cost of replacing your stolen vehicle. Further, if your car was damaged in the process of someone stealing an item from it, your insurance company may issue a payout to cover the cost of repairing the damage. However, the cost of replacing the stolen item would be on you. There is a chance that your home or tenants insurance policy may cover personal belongings stolen from your car, but you would need to review the terms and conditions of that before proceeding.
How can I save money on my Clarenville auto insurance policy?
Opting to pay for your policy yearly instead of monthly, bundling insurance policies, selecting high deductible amounts, adding snow tires to your car during the winter, installing an anti-theft device in your car, choosing an eco-friendly car or one with a high safety rating, and maintaining a clean driving record can all help you save money on your Clarenville auto insurance policy. Learn more about the top safe driving tips.
Can I purchase a car insurance policy in Clarenville without a driver’s licence?
No. You will not be permitted to purchase an auto insurance plan without a driver’s licence in Newfoundland. A copy of your licence is one of the first things an insurance agent or broker will ask for upon meeting you. Thus, you must wait until you have obtained a driver’s licence before purchasing insurance. Please note that you will also need a valid driver’s licence in order to register your vehicle with Newfoundland and Labrador’s Ministry of Transportation, which is a legal requirement for drivers in the same way car insurance is.
Will my friend be covered by my auto insurance policy if they get into an accident while driving my car?
It depends. Since car insurance follows the car, not the driver, chances are they will be covered if they get into an accident while driving your vehicle. However, for them to be covered, you must have given them express permission to drive your car. They also cannot be named as an excluded person in your Clarenville car insurance policy, and they cannot have been doing something illegal at the time of the accident. Assuming they do not fall into any of the aforementioned categories, your insurance policy should cover any damages that resulted from the accident they had while driving your car.
Can I use my Clarenville car insurance policy when driving outside Newfoundland and Labrador?
Yes. Your Clarenville car insurance policy is likely to follow you, assuming you are only leaving Newfoundland and Labrador temporarily. For example, if you are travelling for a few weeks or going on a short work trip to Nova Scotia, you can continue to use your Clarenville car insurance policy without any trouble. However, if you plan to leave Newfoundland and Labrador permanently, such as if you are relocating to another province, you will need to update your policy. The first step if you are planning a move is to notify your insurer and find out your options. They will let you know if they offer coverage in the province you're moving to, and if so, the ways in which you may need to adjust your policy to comply with local laws in that province.
Since location is one of the main factors influencing car insurance rates, you can expect your premium to change if you move. Your current provider can give you a quote so that you know how much your new policy will cost. From there, you can decide if you want to stick with them or cancel your policy once you move and find a new one altogether. Of course, if your current provider does not offer coverage in the place you are moving to, you will need to do this anyway.
What are the penalties that come with driving without car insurance in Clarenville?
The penalties for uninsured driving anywhere in Newfoundland and Labrador range from fines of up to $5,000, the impoundment of your vehicle, the cancellation of your vehicle registration, and six demerit points. Driving without insurance in Canada is illegal. Thus, if you get caught driving uninsured, the consequences are likely to be serious. Thankfully, you can easily avoid these penalties by purchasing coverage that not only protects you but also other drivers and passengers on the road.
Are car insurance quotes free in Clarenville?
Some insurance companies and brokerages offer free quotes to Clarenville customers. You just need to know where to look. Contacting local insurance companies or conducting a quick online search is a great way to find insurance professionals that offer free auto insurance estimates near you. Once you have found a broker or agent that will provide you with a free quote, prepare the necessary information so that you can answer their questions as accurately as possible. This way, you will receive a realistic and competitive quote.
What is the average cost of car insurance in Clarenville?
The average cost of car insurance in Newfoundland and Labrador is roughly $1,100 annually. This is far less than how much the average car insurance policy costs in other provinces like Ontario and is even below the national average. While $1,100 is the average cost of auto insurance in Newfoundland, you won’t know exactly how much your policy will cost until you obtain a free quote. Depending on your circumstances, you could end up paying more or less for a policy. Remember that insurance companies will consider a variety of details when calculating your Clarenville car insurance premium, including but not limited to age, average mileage, gender, location, local laws, the type of car you drive, how you use your car, and more.
How much liability insurance do I need in Clarenville, Newfoundland?
All Newfoundland drivers must carry no less than $200,000 in liability insurance. This is the law in Newfoundland and Labrador. If you do not purchase liability insurance before driving and you are caught, you could face serious fines, have your licence suspended, and have your vehicle impounded. Please note that just because liability coverage is mandatory and $200,000 is the minimum coverage limit does not mean most drivers purchase that amount of coverage. The reality is that many Clarenville drivers choose to purchase more than $200,000 in third party liability coverage due to the extra protection it offers.
If you have any questions, contact one of our local branches.
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