What car insurance do I need as a Stephenville driver?
As a driver in Stephenville, Newfoundland and Labrador, there are four types of coverage that you need. Not only do each of these coverage types offer financial protection to you in the event of an accident but they are all required by the provincial government. Thus, in order to drive legally in Stephenville, you will need to have an auto insurance plan that contains these four coverage types:
Third party liability coverage
In Stephenville, all motorists must have liability insurance of at least $200,000 of it, to be exact. This type of coverage is important on almost any type of insurance policy, as it can protect you against third party claims alleging property damage or bodily harm. Liability coverage in car insurance comes into play if you get into an accident that you cause and it results in bodily injury or damages another person’s vehicle. Under the liability portion of your policy, you can compensate for legal fees, medical bills, and vehicle repair bills. With all the variables that come with the misfortune of an accident many opt for higher limits on liability insurance, from $500,000 all the way up to $1,000,000.
Accident benefits coverage
Accident benefits coverage is also mandatory in Stephenville. It is specifically designed to safeguard policyholders if they are involved in an accident that causes bodily harm to themselves or another. With accident benefits, your insurance company can reimburse you for medical expenses not covered by health insurance, along with loss of income.
Direct compensation - property damage coverage
Direct compensation - property damage coverage offers financial safety if your car is damaged in a collision. However, one condition is that you cannot have caused the accident. So long as you were not liable for the accident, your insurance provider will issue you a direct payout to cover the cost of repairing your car.
Uninsured motorist coverage
Last but not least is uninsured motorist coverage. This final type of mandatory car insurance in Newfoundland and Labrador protects drivers from the reality of getting into accidents with drivers who are uninsured, underinsured, or unidentified. In other words, if you are involved in a collision with someone who does not have car insurance, does not have enough car insurance to pay for the damages resulting from the accident, or fails to identify themselves, fleeing the scene instead, uninsured motorist coverage can protect you.
Are there any other types of car insurance available to me as a Stephenville driver?
Yes! In fact, there are plenty of types of auto insurance available to drivers in Stephenville, Newfoundland and Labrador. A few of the most common optional car insurance coverages in the province include collision coverage, comprehensive coverage, and accident forgiveness coverage, each of which is detailed below:
Collision car coverage safeguards Stephenville drivers against the reality of vehicle repairs. If your car is badly damaged in a car accident, whether you caused the accident or not, you can receive a payout under the collision coverage portion of your Stephenville auto insurance plan to pay for the necessary repairs.
Comprehensive car coverage will pay to repair or replace your vehicle if it is stolen or damaged due to an insured loss. This type of coverage is extremely popular as it offers protection when your car is parked, which is unique in the world of auto insurance. The types of insured losses, also known as perils, that comprehensive insurance can cover you for include fire, vandalism, falling objects, theft, wind, water damage, and more. While both collision and comprehensive coverage can be optional, many automobile loan providers and leasing companies may request it as part of their contracts, making the coverage obligatory.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Stephenville 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.
How Stephenville insurance companies calculate auto insurance rates
It might be hard to believe, but insurance companies take into account all kinds of factors when calculating auto insurance rates for Stephenville drivers. While the rate-calculation formulas that insurance providers use may differ, you can generally expect that the following factors will influence how much you pay for car insurance in Newfoundland and Labrador:
- Where you live (and where you regularly commute)
- Model, make, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
Please note that due to the large number of factors considered by an insurance company, rates can vary significantly, even among drivers in Stephenville. Thus, we recommend contacting BrokerLink for a free car insurance quote if you want to gain a better understanding of how much your policy will cost. Get started now using BrokerLink’s online quote tool.
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Want to save money on Stephenville car insurance? Here’s how!
If you are ready to save money on your Stephenville car insurance policy, read this list of tips put together by BrokerLink’s licensed insurance advisors:
- Pick high deductible amounts rather than low ones
- Pay your insurance bills on time and speak with your provider about a new payment plan if you’re at risk of falling behind
- Call a licensed insurance broker in Stephenville for help
- Graduate from an approved driver’s education program or defensive driving program in Newfoundland and Labrador
- Reduce your annual mileage
- Install a telematics device in your vehicle
- Install snow tires on your car during the winter months
- Obey all traffic laws to keep your driving record clear of infractions
- Add an anti-theft device to your vehicle
- Buy an eco-friendly vehicle, like a hybrid or electric car and one with a high safety rating
- Ask an insurance broker about car insurance discounts you may be eligible for
- Mix different insurance policies or buy multiple auto insurance policies together
Filing a car insurance claim in Stephenville, Newfoundland and Labrador
To reap the benefits of your Stephenville car insurance policy, you will need to file a claim in the event of a loss. The most common type of loss relating to your car will be if you get into an accident on the road. Whether the accident is major or minor, you will likely still need to submit a claim to your insurance provider. However, the process of doing so can be daunting to some, especially if you've never done it before. That is why the BrokerLink team has put together this guide to filing a car insurance claim in Newfoundland and Labrador. Keep reading and you’ll find out all you need to know in no time:
Contact your Stephenville car insurance company
The first step is to contact your Stephenville car insurance company. Why must you do this? To notify your insurance provider about the accident, which should be done as soon as possible but no more than seven days following the accident. Once you’ve let your insurance provider know what happened, they will tell you exactly how you can proceed with submitting a claim.
Start collecting the necessary information
Before you officially submit a claim with your car insurance provider in Stephenville, you will need to collect all the necessary information. Think of this information as your evidence. The more evidence you can gather, the better. Evidence for auto insurance claims can come in many forms, like photos, videos, police statements, witness statements, and basic information, including the date, time, and location of the collision. You should also be prepared to provide your insurance policy number and the insurance information of any other drivers involved in the accident.
Complete the insurance forms
Your insurance company will likely send you several forms that must be completed in order to formally submit your claim. Thankfully, due to the information you gathered in step two, filling out these forms should be a breeze. Complete the necessary forms quickly and accurately to make the claims process as seamless as possible.
Work alongside the insurance adjuster
After your claim has been submitted, an insurance adjuster will begin an independent investigation. They will analyze the information submitted in an effort to determine whether your claim should be approved or rejected. It is the insurance adjuster’s job to investigate your claim before making a recommendation to your insurance provider. During the investigation, they may have questions for you. They could also request additional evidence be provided. Cooperate with the adjuster as best you can. This will make the entire process faster and smoother.
Wait to hear from your insurance company
Once the insurance adjuster has wrapped up their investigation, all that’s left to do is wait. Your insurance company will get in touch as soon as a decision has been made. Whether they reach out to you over the phone or online, they will let you know the status of your claim, i.e. if it has been approved or rejected. If it has been approved, they will let you know what amount you can expect to receive and what method it will be sent to you by.
If you need help navigating the car insurance claims process in Stephenville, don’t hesitate to reach out to BrokerLink. We can provide you with all kinds of tips and advice to make submitting a car insurance claim that much easier.
We’re in your community
Here at BrokerLink, we aren’t just your average insurance brokerage. No, we are customer-driven and aim to give back to the communities we operate in. We also behave with integrity, respect one another, act with generosity, and strive for excellence. Discover more about what you can expect from BrokerLink 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 Stephenville 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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Car insurance Stephenville FAQs
If I add snow tires to my car, will I qualify for a discount on my Stephenville car insurance policy?
You might. It depends on whether your insurance company offers winter tire discounts to customers. However, many do as a way of encouraging customers to install them on their cars, which makes driving in winter conditions far safer. The best way to find out if your insurance provider offers a winter tire discount, and if so, what you need to do to be eligible for it, is to contact them directly. An insurance agent can inform you of any conditions that need to be met to qualify, as well as how much money you can save on your Stephenville car insurance plan by installing them on your vehicle.
How do I renew my car insurance plan in Stephenville?
You can renew car insurance in Stephenville in a matter of minutes by getting in touch with your insurance company. An insurance agent can inform you of the renewal process. However, in most cases, all you have to do is let them know that you would like to renew your policy when it expires. It will then be renewed for another term, which typically lasts one year. At this time, they will let you know if your premium has changed. Now is also a great time to update your coverage if you wish to make any adjustments to your coverage types, coverage limits, or deductible amounts. Please note that you are not obligated to renew your policy, so if you find a better deal elsewhere, don’t hesitate to let your policy expire and purchase a new one instead. Just make sure that your new policy begins the day your old policy ends, otherwise, you will experience a gap in coverage which can lead to increased premiums. Finally, it is worth noting that if your last car insurance policy recently expired, you might still be able to renew it, though you should contact your insurance company ASAP. Expired car insurance renewal can be trickier, so it’s best to get the ball rolling as quickly as possible.
Can I buy car insurance coverage in Stephenville without a valid driver’s licence?
No. It is not possible to buy auto insurance coverage without a valid driver’s licence. So if you do not currently have a driver’s licence, you will need to obtain one before contacting an insurance company to buy coverage. Please note that you must also hold a valid licence in order to register your vehicle with Newfoundland’s Ministry of Transportation, which is also required to buy car insurance.
Will my friend be covered by my Stephenville auto insurance plan if they get into an accident while driving my vehicle?
Chances are, yes. Remember that auto insurance follows the car, not the driver. Thus, your car insurance coverage will still cover your vehicle, even if the main policyholder is not the one driving it. However, for your friend to be covered, you must have given them express permission to drive your vehicle. They also cannot be an excluded person listed on your policy. Further, if they were committing an illegal act at the time of the accident, your policy will also not cover them.
What are the consequences of uninsured driving in Stephenville?
Driving without car insurance in Stephenville is a serious offence. Since auto insurance is mandatory in Newfoundland and Labrador, driving without it is illegal. The potential punishments you may face if you are caught driving without valid car insurance coverage include fines of up to $5,000, the impoundment of your vehicle, six demerit points, and the cancellation of your vehicle registration. Thus, it is strongly recommended that you purchase car insurance coverage and make sure it remains valid at all times.
How much does the average car insurance policy cost in Newfoundland and Labrador?
The average car insurance policy in Newfoundland and Labrador costs $1,500 per year. This is below the average in many other Canadian provinces. However, just because $1,500 is the average auto insurance rate in Newfoundland does not mean that you will pay that as a Stephenville motorist. Rates vary significantly since insurance companies use so many factors to determine premiums. Thus, just because your neighbour in Stephenville pays a certain amount for their auto insurance policy does not mean that you will pay that same amount. To find out how much your Stephenville car insurance policy will cost you, request a quote from an insurance professional.
How much third party liability coverage do I need as a driver in Stephenville, Newfoundland and Labrador?
As a Stephenville driver, you must have no less than $200,000 in third party liability coverage. If your policy contains less than this, which is a government requirement, your policy will be invalid. If your policy is invalid, you can be caught and fined for uninsured driving in the province. Further, it is worth noting that even though drivers in Newfoundland and Labrador are only legally required to hold $200,000 in liability insurance, many motorists choose to purchase $500,000, $1,000,000, or more in liability insurance due to the protection it offers. Keep in mind that $200,000 may not be enough in the event of a serious car accident.
Do credit scores impact car insurance premiums in Stephenville?
They can, but it is not guaranteed. Insurance companies look at all kinds of details when calculating premiums for Stephenville drivers. These factors range from age, gender, and location to the make and model of the car you drive, your insurance claims history, driving record, average mileage, and more. Thus, if your credit score is considered, it will be one of many factors considered. It also likely won’t be weighed nearly as heavily as some of the others, as your driving record and age, for example, are a much greater indication of risk from the perspective of an insurance company. It is worth noting that if your Stephenville insurance provider asks about your credit score, having a high credit score can help you whereas having a lower credit score may hurt you.
If you have any questions, contact one of our local branches.
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