Nunavut Car Insurance

Learn about auto insurance in Nunavut

Even though the territory is the most recent addition to the country, car insurance in Nunavut is just as important as any other area of Canada.

As the largest territory, there are a lot of open roads. You need to ensure you have the right policy to protect you when driving in the city of Iqaluit, or one of the many hamlets such as Rankin Inlet and Arviat.

Here, you will learn how car insurance works in the territory. You’ll learn how to get the lowest premiums.

NOTE: Auto insurance is not available through ThinkInsure in Nunavut.

Key takeaways about Nunavut car insurance

The car insurance rates in Nunavut are less than the Canadian average.
Auto insurance is mandatory. Coverage is available through private insurers and brokers
Direct compensation property damage (DCPD) does not apply in Nunavut. It's a combination of a tort and no-fault system.

How does car insurance in Nunavut work?

The province operates under a private insurance system. Drivers get insurance from private insurance companies and brokers. Insurers set the rates; however, they must be approved by the Government of Nunavut. The government runs all insurance through the Office of the Superintendent of Insurance.

Nunavut’s Insurance Act and regulations outline how insurance is administered in the territory. This came into effect on April 1, 2013. The Government of the Northwest Territories previously ran it on their behalf since Nunavut became a separate territory in April 1999.

Nunavut car insurance regulations

You are required to have a valid auto insurance policy to drive in Nunavut. You must have a minimum of $200,000 in third party liability coverage. You can increase your liability limits and add other coverage for an additional fee.

Does Nunavut have no-fault insurance?

The territory does not have a purely no-fault insurance system. It is a combination of no-fault and tort. You deal with your own insurance company for liability claims. However, you also have the right to sue at-fault parties for additional damages that are more than what is covered in your plan.

Mandatory car insurance in Nunavut

Here is a breakdown of the minimum that is included in your policy:

Third-party liability: $200,000 in coverage with property damage capped at $10,000.
Accident benefits: Get protection if you are injured in an accident. Uninsured motorist insurance is included as part of your accident benefits.

Here is what is covered as part of your supplemental benefits:

Medical coverage: Up to $25,000 per person. 4-year limit.
Funeral expense benefits: Up to $1,000.
Disability income: 80% of gross wages, up to $140 per week. 104-week limit.
Death benefits: $10,000 for the head of the household or spouse. $2,000 for dependants.

Direct compensation property damage (DCPD) is not applicable in the territory.

Optional car insurance in Nunavut

Most drivers add optional protection to increase their level of protection. Your options include:

You can also add insurance endorsements to personalize your plan. Some of the more commonly used riders include:

SEF 20 - Loss of Use
SEF 27 - Legal Liability for Damage to Non-Owned Automobile
SEF 39 - Accident Rating Waiver
SEF 43R - Limited Waiver of Depreciation

How much is car insurance in Nunavut?

The average car insurance rate in Nunavut is $1,033 per year. This is a monthly payment of about $86. Your premiums could be higher or lower depending on your driving needs and situation.

How do Nunavut auto insurance rates compare to other provinces and territories?

Drivers in Nunavut pay about $200 less than the national average for car insurance. They pay about the same as drivers in NWT and about $150 more per year than Yukon residents. You spend almost half of what drivers in British Columbia pay annually.

How do I get affordable car insurance in Nunavut?

Car insurance rates are less than average in Canada. But you still have the opportunity to save more if you are diligent with comparison shopping. When you compare policy options, you will have the chance to:

Choose the right level of coverage.
Find new discounts.
Use an insurer that best meets your needs.
Combine coverage.
Ensure you are taking advantage of the lowest rates.

What affects car insurance prices in Nunavut?

Many different things can influence how much you pay. Some of these things you cannot control, such as your age and gender. But there are also many factors that you have some control over. They include:

Vehicle type
Where you live
Driving record
Insurance history
Coverage limits and deductible
How you use your vehicle and how much you drive

Nunavut car insurance FAQs

Which Nunavut car insurance company has the lowest rates?

You will not find one if you are looking for a single insurer that will provide you with the lowest rates. Insurance is a personalized product. Insurance companies offer unique packages and coverage. Therefore, you can get some solutions from one provider and not the other. Plus, each insurer has a specific formula for how they set rates. The best way to find the lowest is to shop around.

How long do traffic tickets stay on your driving record in Nunavut?

Traffic tickets and violations will remain on your record for two years from the date of the conviction. They appear on your record as demerit points.

What are the penalties for driving without insurance in Nunavut?

You face a fine that can range from $500 to $50,000. You will face additional fines and jail time if you are a repeat offender.

How do I get a driver's licence in Nunavut?

In Nunavut, to get a licence you need to complete these two levels:

Level one – Learner’s permit Class 7: You must be 15 years old and pass a written test about the rules of the road.
Level two – Class 5: You must be at least 16 years old. You must pass a road test, have less than 5 demerits and have practiced for at least 4 weeks.

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2024-07-25