Car Insurance in Newfoundland and Labrador

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A gem on the East Coast, Newfoundland and Labrador's unique geography and unpredictable weather conditions make car insurance a crucial investment for all drivers in the province.

Whether you’re navigating the busy streets of St. John's or driving through scenic coastal highways, having the right insurance in place can give you the peace of mind knowing your finances and interests are protected should the unthinkable happen.

BrokerLink compares rates from a wide range of providers, ensuring you get the best deals available.

What is Newfoundland and Labrador car insurance?

Car insurance is a type of agreement you make with an insurance company. In exchange for a monthly premium, the insurance provider agrees to help you cover the cost of repairs or replacements of your vehicle, along with other expenses, if you are involved in a car accident.

Why you need car insurance in Newfoundland and Labrador

Car insurance coverage is mandatory for all motorists in Canada. However, because insurance is regulated on a provincial level, insurance in Newfoundland, including coverage minimums, will vary from other provinces. Driving without valid auto insurance can lead to hefty fines and consequences, including:

Between $2,000 and $4,000 for a first offence
Between $3,000 and $5,000 for a second offence
Loss of your licence for 90 days (suspension)
Vehicle impoundment for up to three months
Mandatory auto insurance in Newfoundland

Types of auto insurance coverage in Newfoundland and Labrador

Whether you're a new driver in Newfoundland and Labrador or need to renew your car insurance and are from out of province, you'll need to ensure you have the following types of auto insurance in place to avoid the consequences we mentioned above:

Mandatory

Optional

Third-party liability is designed to offer protection should you be involved in a collision where another person is injured and/or their property is damaged (i.e., their vehicle.) With liability coverage, the cost of medical bills, funeral costs, legal fees, repairs, and replacements will be covered by your insurance company, up to your coverage limits.

Newfoundland and Labrador drivers must carry a minimum of $200,000 in liability insurance, which is a similar requirement mandated by the British Columbia, Alberta, and Ontario governments. However, many drivers opt for higher coverage limits up to $1 or $2 million.

Direct compensation - property damage kicks in if you are involved in a collision with an at-fault driver who causes damage to your vehicle. Rather than dealing with their insurance provider, this car insurance ensures that you can deal with your own insurance company. Ultimately, this auto insurance policy guarantees that you'll be fairly and swiftly compensated following a collision.

Uninsured car insurance is designed to protect you and your passengers if you are involved in a collision with an at-fault driver who is found to be either underinsured or entirely uninsured. This coverage also applies to hit-and-run accidents and is designed to cover car repair costs, lost wages, and medical expenses as a result of injuries.

Unlike most other provinces, accident benefits insurance coverage is not legally mandated in Newfoundland. But it is still worth considering. This policy helps with medical expenses, rehabilitation costs, and income replacement if you, your passengers, or pedestrians are injured in an accident, regardless of who is at fault.

According to the Newfoundland government, 2,125 new cars were sold in December 2024, which is a 5.9% increase from the previous year. With more cars on the road, the risk of causing an accident increases. This is where collision coverage comes into play. Should you damage your vehicle in an at-fault accident, collision car coverage will cover the cost of your vehicle repairs or replacements needed.

In 2023, insurance claims to replace stolen vehicles in Canada reached an all-time high of $1.5 billion. Luckily, with comprehensive coverage, you'd be protected by your insurance company if someone stole your vehicle and against other non-collision-related damages like vandalism, severe weather conditions, falling objects, and more.

One more type of optional car insurance coverage popular among Peterborough drivers is accident forgiveness. This is additional coverage that can be added to your 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.

If you're buying a new car, adding this coverage to your policy is worth considering. It ensures you're covered for the full value of your vehicle without factoring in depreciation. That means if your car is stolen or totalled, you'll be reimbursed for the cost of a brand-new vehicle—not just what it's worth after wear and tear.

If you ever get into an accident and your car needs repairs, loss of use coverage has your back. While your car is in the shop, this coverage helps pay for other ways to get around—whether that's hopping on public transit, using ride shares, or renting a car. It can be a real lifesaver, especially if your car ends up being out of commission for days or even weeks.

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How to save on car insurance rates on Newfoundland and Labrador

Unfortunately, unlike what car insurance myths claim, you can't negotiate your car insurance rates. You can, however, find affordable car insurance in Newfoundland by doing the following:

Discounts

Opt for a multi-car insurance plan

If you own multiple vehicles, consider a multi-car insurance policy. Most insurance companies in Newfoundland provide a discount to customers who insure more than one vehicle under the same auto insurance plan.

Ask about auto insurance discounts

Other car insurance discounts include installing winter tires, adding anti-theft devices to your vehicle, maintaining a clean driving record, enrolling in a defensive driving course, and more! Ask if you qualify for savings the next time you're shopping for car insurance.

Savings Options

Bundle your auto and home insurance

Have more than one type of insurance with an insurance company already? Bundle your car insurance in Newfoundland and Labrador with other policies you have, like your house insurance, to receive a discount on your auto insurance rates.

Work with an independent insurance broker

Lastly, consider working with an insurance broker in Newfoundland and Labrador. Brokers work independently from insurance companies, allowing them to shop around on your behalf, compare auto insurance rates, unlock discounts, and answer any questions you may have about your coverage free of cost!

Factors that influence the cost of car insurance coverage in Newfoundland and Labrador

How car insurance companies work is by generating a risk profile on each customer looking to renew car insurance. The more of a risk you are, the more you'll pay for your auto insurance. Insurers use a variety of factors to generate profiles, including:

Where you live

Living in an urban area with high traffic congestion and crime rates will lead to more expensive premiums compared to someone living in a rural area.

Age

Young drivers under the age of 25 and those over the age of 65 are at a higher risk of getting into an accident. As such, you're likely to pay more for insurance.

Make, model and year of the vehicle

Luxury vehicles and sports cars tend to come with higher premiums given their lower safety ratings, increased theft risk, and expensive repair or replacement costs.

Claims history

Having numerous insurance claims on your file makes you more of a risk of filing in the future, leading to higher insurance rates.

Driving history

Traffic convictions and numerous at-fault accidents make you more of a risk, and therefore, you will pay higher rates for insurance coverage.

Your deductibles

A higher deductible can lower your premiums, while a lower deductible can increase them.

What are the average auto insurance rates in Newfoundland?

The average annual premium for auto insurance in Newfoundland was $2,162 in 2024. This is quite a bit lower than other provinces like Alberta, which had average auto insurance premiums of $3,151 in 2024.

All provinces in Canada experienced a 13.3% in premiums from 2023, which is normal given the number of claims filed each year, an increase in traffic congestion, weather conditions, and other factors. Ultimately, if you're looking for cheap auto insurance, the best thing you can do is practice safe driving and follow the tips we laid out for you above.

Find the Best Coverage Available in Newfoundland with BrokerLink

With years of experience, BrokerLink brokers are committed to helping customers find personalized protection plans for their vehicles. Whether you're looking for classic car insurance or car insurance for international students, our brokers have access to numerous policies and providers throughout Newfoundland, allowing them to find coverage you feel confident in, without overpaying.

Ready to start your car insurance journey? Contact BrokerLink over the phone or use our online quote tool from the comfort of your own home for a competitive quote ready within minutes!

What documents do I need to purchase insurance?

The documents you need for car insurance include a valid driver's license, vehicle information like your make, model, year, vehicle identification number (VIN), license plate number, previous insurance documents (if applicable), and any documents related to previous traffic violations or convictions.

Ensure that you have the documents ready to go before going to your appointment, so you can be in and out of the office as swiftly as possible.

How does an insurance write-off process work?

A car insurance write-off process occurs when your insurer determines that your vehicle repair expenses will cost more than what your vehicle is currently valued at. If you wish to have your vehicle repaired instead of replacing it entirely, you'll need to file an appeal with your insurance company to review the decision.

Once a decision is made, you'll either be compensated for your repairs or be given a lump sum payment, which you can use to replace your vehicle or pay for repairs privately.

Contact Brokerlink for a free car insurance quote in Newfoundland and Labrador

Do you want to learn more about Newfoundland and Labrador insurance? BrokerLink can help. Whether you want to insure your home, car, business, 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 invite Newfoundland and Labrador drivers to take advantage of our online auto insurance quote tool. BrokerLink offers free quotes to all Newfoundland and Labrador residents. Simply provide us with some basic information about yourself and your vehicle, such as the make and model, and we will get back to you with an accurate and competitive quote in minutes. Protect yourself with Newfoundland and Labrador car insurance by contacting BrokerLink today.

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