Yukon Car Insurance

Learn about auto insurance in Yukon

Yukon car insurance rates are some of the most affordable in Canada. The smallest of the three territories also has the lowest premiums among them. Even so, you still need to comparison shop to keep saving year after year.

Whether you are hunting for Klondike gold or enjoying the azure lakes, boreal forests, and wilderness, you can have peace of mind that you are covered with a good auto insurance plan.

Here, you will learn how car insurance works in the territory and get tips on finding the lowest premiums.

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

Key takeaways about Yukon car insurance

Yukon car insurance rates are significantly lower than the Canadian average
Car insurance is mandatory. DCPD is optional.
Yukon uses a hybrid no-fault system

How does Yukon car insurance work?

Yukon operates under a private insurance system. This means you will get your insurance from private insurance companies, not the government. You can get coverage from an insurance company or broker. The Office of the Superintendent of Insurance oversees the regulation and licensing of insurance professionals in the territory.

Yukon car insurance rules

Insurance is legally required for you to drive. You need to carry a minimum of $200,000 in third-party liability. This also includes $10,000 worth of property damage coverage. However, most drivers have policies with more than the minimum requirement.

Does Yukon have no-fault insurance?

The territory uses a hybrid system. While you will deal with your insurer for third-party liability claims, you still can sue at-fault drivers. You can sue them for damages and medical costs beyond standard benefits.

Mandatory car insurance in Yukon

As part of the mandatory coverage requirements, you will have the following protection in your plan:

Third-party liability: This pays for other medical bills if you injure another person while driving. It also pays for property damage caused by you.
Uninsured motorist: Protect you and your family if an uninsured driver injures you.
Accident benefits: This covers medical costs because of an accident.

Your plan will provide you with the following supplementary benefits:

Medical coverage: up to $10,000 per person. 2-year limit.
Funeral expense benefits: $2,000.
Disability income: 80% of gross wages. Up to $300 per week. Limit of 104 weeks.
Death benefits: $10,000 for the head of the household. $2,000 to each dependent.
Right to sue: You can sue for pain, suffering, and economic loss.

Unlike many other regions, direct compensation property damage (DCPD) is not a requirement.

Optional car insurance in Yukon

You can add extra coverage to your policy for added protection. Here are your options:

Collision insurance: This pays for vehicle repairs after you are involved in an at-fault accident.
Comprehensive insurance: This provides you with protection against non-collision damage such as vandalism and weather damage.
All perils: This combines collision and comprehensive protection.
Specified perils: This covers risks that are specifically listed in your plan. If not listed, you do not have coverage.

Yukon car insurance endorsements

Drivers can further personalize their plans by adding insurance endorsements for specific coverage. Adding these will increase your payments. Here are the most common endorsements found in Yukon car insurance plans:

Loss of use
Non-owned auto coverage
Limited waiver of depreciation
Replacement value for a total loss
Leased vehicle

How much is car insurance in Yukon?

Drivers pay an average of $889 per year. This is a monthly payment of about $75 per month. This is the most affordable of all the territories.

How do Yukon auto insurance rates compare to other provinces?

Yukon residents have the third-lowest rates in Canada. You are about $400 less per year than the national average and about $1,000 less than the most expensive province. Ontario car insurance rates are over $2,000 per year. Only residents in PEI and Quebec pay less.

Tips to get the lowest car insurance rates in Yukon

Even though you already live in an area with some of the most affordable rates in the country, it’s still important for you to take steps to save more. Here are some simple things you can do to ensure you are getting the best quote:

Shop around for the best deal.
Choose the right level of coverage.
Combine your policies with the same insurer.
Increase your deductible to lower your monthly payment.
Install safety devices.
Drive safe and stay claims-free.
Speak with your insurer about other potential discounts.

Factors that affect car insurance premiums in Yukon

Understanding the factors affecting your pay can also help you save more. Here is the main information used by insurance companies to calculate your rates:

Your address.
Driving record.
Vehicle make, model, and features.
How you use your vehicle and how much you drive.
Increasing policy limits and adding more protection

Yukon car insurance FAQs

Which Yukon auto insurance company offers the lowest rates?

There is not one specific insurance company that is always more affordable than the others. Rates vary based on the type of insurance products, how insurance companies assess your level of risk and many other factors. You can find the best premiums by shopping around and comparing your options. This will help you find the most affordable insurance company for you.

Can you get temporary car insurance in Yukon?

Most private insurers only offer standard one-year policies. Some may issue a six-month policy under certain circumstances. Shop around to see if you can find a provider offering temporary car insurance.

What insurance advice would you offer new drivers in Yukon?

Get winter tires and add roadside assistance coverage. There are a lot of remote areas and challenging driving conditions. This ensures you have the assistance you need if you get stuck. Plus, you will also qualify for a winter tire discount.

What is the penalty for driving without insurance in Yukon?

There are severe penalties for driving without insurance. You could face a fine of $400 to $2,000. If you are caught a second time, you will face additional fines and the possibility of jail time.

How long do tickets stay on my driving record in Yukon?

A demerit point system is used in the Yukon. Any points accumulated for tickets will stay on your record for 2 years from the date of the conviction. You can accumulate up to 12 points before your licence can be suspended.

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

Yukon uses a graduated licencing system. Here are the three stages you need to complete to become a fully licenced driver:

Stage 1 – Learner’s licence: You must be 15 years old. You must pass a sign and written test. You need to be accompanied by a class 5 licensed driver. You must display the “L” sign on the back of your vehicle. You cannot use hands-free devices while driving. Zero BAC.
Stage 2 – Novice licence: You must be at least 16 years old. You need to complete 50 hours of stage 1 driving. You need to have your learners for at least 5 months and pass a road test.
Stage 3 – Full licence: You must have your stage 2 licence for at least 18 months.

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