New Brunswick Car Insurance

Learn about New Brunswick auto insurance

Drivers in New Brunswick enjoy some of the most affordable car insurance rates in the entire country. Even though it is the most affordable in Atlantic Canada, you still need to take steps to ensure you continue to save year after year.

Whether you are visiting the Bay of Fundy, driving along the Miramichi River or commuting daily in the province’s most populated cities such as Fredericton, Moncton and Saint John, there is a policy for you.

On this page, you will learn how car insurance works in the province. Get tips to find the most affordable premiums and save.

NOTE: Auto insurance is not currently available through ThinkInsure in New Brunswick.

Key takeaways about New Brunswick car insurance

New Brunswick has the most affordable car insurance in Atlantic Canada
Insurance is mandatory, and the province has no-fault insurance
Insurance is available through insurance companies

How does car insurance work in New Brunswick

Just like in all other areas of the country, you are required to have New Brunswick auto insurance to drive. Insurance is mandatory and available through private insurance companies and brokers.

Insurance is regulated by the Financial and Consumer Services Commission. They enforce the Insurance Act of New Brunswick. You are required to have a minimum level of coverage, but most people add extra protection. You can get your policy by comparing insurance coverage from private insurance companies.

Is there no-fault insurance in New Brunswick?

Yes. The province operates using a no-fault insurance system. Under this system, you will only ever need to deal with your own insurance provider when filing a claim. However, the province allows no-fault drivers to sue at-fault parties for additional damages not covered under mandatory accident benefits.

Can you get temporary car insurance in New Brunswick?

No. Temporary insurance coverage is not available in the province. The shortest-term policy available is 6 months. Most people opt for a full-term policy (1 year).

Mandatory New Brunswick car insurance

Four main components make up mandatory car insurance in New Brunswick:

Section A - Third party liability: Protection if you are liable for an accident.
Section B - Accident benefits: You will receive benefits if you are injured in a crash, regardless of who is at fault.
Section D - Uninsured automobile: Get protection for injury or death caused by an uninsured driver.
Direct compensation property damage (DCPD): Coverage for damage to your vehicle if another driver was at fault.

Your plan will also include the following supplementary benefits:

Medical payments: up to $50,000/person. 4-year limit.
Funeral expense benefits: up to $2,500.
Disability income benefits: Maximum $250/week.
Death benefits: Death of head of household $50,000, death of spouse $25,000. Death of dependant $5,000.
Right to sue: Yes. The pain and suffering maximum is $8,305.50. You can sue for economic loss.

Optional car insurance in New Brunswick

Adding optional protection provides you with additional protection for your vehicle:

Collison insurance: This pays for damage caused by a collision or upset.
Comprehensive insurance: This pays for damage caused by weather, theft, and vandalism.
All perils: Protection if someone in your household steals your vehicle. This includes collision and comprehensive.
Specified perils: Pays for damage because of perils specifically listed in your policy.

Additional coverage options

You can further customize your plan using standard insurance endorsement forms (SEF). Here are some of the most commonly used.

SEF 44 – Family Protection
SEF 43 – Full Replacement Value
SEF 20 – Rental Vehicle
SEF 16 – Put insurance on hold

How much is car insurance in New Brunswick?

The average car insurancepremium in New Brunswick is one of the lowest in the country. According to the Insurance Bureau of Canada, you pay about $1,014 annually. This averages out to about $85 per month.

How do New Brunswick car insurance rates compare to other provinces?

Only three regions pay less for insurance in Canada – Quebec, PEI, and Yukon. Compared to the average rate for the country ($1,244), you pay about $200 less per year for insurance. Drivers pay almost half as much as drivers in B.C. and Ontario.

What factors impact New Brunswick auto insurance?

There are a variety of things that play a role in determining how much you will pay for insurance. Here are the top factors:

You: Your age, gender, experience, driving record.
Automobile: Your make, model, how much you drive, the likelihood of theft.
Location: Your city and neighbourhood, crime, and accident stats in your region.
Coverage: Additional coverage and endorsements, deductible limit.
Insurance industry: Approved fee changes, rising claims numbers, fraud, the threat of extreme weather events, and changes to vehicle technology.

How can I get the lowest car insurance in New Brunswick?

a car passing by The longest wooden covered bridge

Even though you already pay some of the lowest premiums, there is always more room to save. Here are some ways to reduce your costs even more:

Compare your options often: Comparison shop when your policy comes up for renewal.
Bundle insurance: Bundle up on coverage for your car, home, and more.
Try UBI: Tracking your driving with Usage Based Insurance can help you lower your payments.
Prioritize safety: Install winter tires, park in the garage, and add a security system for more savings.
Be loyal: Sticking with the same insurance company long-term can qualify you for a loyalty insurance discount.

New Brunswick car insurance FAQs

Is car insurance expensive in New Brunswick?

No. Auto insurance in New Brunswick is one of the most affordable provinces in all of Canada. On average, drivers pay well under the average national. Many people can get coverage for well less than $100 per month.

Is car insurance going up in New Brunswick?

Even though costs have been trending upward in the province, they are at a different scale than in other parts of the country. You can minimize the effect of rate increases by comparing your options to ensure you pay the lowest possible amount based on your unique driving situation.

How long do tickets stay on your record in New Brunswick?

Traffic tickets remain on your driving record for 3-4 years. The province uses a rating program that considers minor and major traffic convictions. This information is used as part of the process to determine your rates.

Why are insurance rates so low in New Brunswick?

Low car insurance in New Brunswick is attributed to the reforms put in place by the province in 2003. This led to the “First Chance Discount” which provides new drivers with credit for driving experience. Completing driving school can also help reduce costs further under this system. Additionally, increased competition among private insurers has allowed residents to have some of the lowest premiums in the country.

What are the penalties for driving without insurance in New Brunswick?

If you are convicted of driving without insurance in New Brunswick, you face a fine between $500 and $2000. You could also face jail time and have your licence suspended.

How do you get a driver's licence in New Brunswick?

You are required to complete a three-step graduated licencing process to become a fully licenced driver. Here are the steps you need to complete:

Class 7 Learner's Licence (level one): You must be 16 years old. You require parental consent if you are under 18. You must pass a written test about road rules. You must pass a road test. A Class 5 driver must accompany you. Zero BAC.
Class 7 Learner's Licence (level two): You need to hold a level one licence for 12 months. This can be shortened to 8 months if you complete driving school. You must pass your level two road test. Zero BAC.
Class 5 Regular Licence (full): Hold a level one and level two licence for 12 months each.

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2024-07-25