Quote data from MyChoice.ca, October 2024
How Can You Get Cheap Car Insurance in Newfoundland?
You can get cheap car insurance in Newfoundland by lowering your premiums and finding the best-valued insurance policies. Here’s how you can do that:
How Does Car Insurance Work in Newfoundland?
Car insurance in Newfoundland works by providing you with financial benefits if you get in a car accident. Car insurance is mandatory in Newfoundland, meaning you must have an insurance policy to drive – otherwise, you may face fines and suspensions. You may also receive demerit points that signify you as a high-risk driver, raising your premiums.
Like in most parts of Canada, both mandatory and optional insurance coverage are available in Newfoundland. You only need the former to drive legally, but optional coverage protects you from more hazards.
How Your Car Insurance Quotes Are Calculated in Newfoundland
Your Newfoundland auto insurance rates are calculated based on your risk profile. If the insurer thinks you’re more likely to get into an accident, your rates will be higher. Unlike most Canadian provinces, your age or gender doesn’t affect your insurance rates, thanks to a bill passed in 2005.
Here are the main considerations when insurers calculate your insurance quotes:
Most Expensive Cities to Insure a Car in Newfoundland
With an annual average of $1,095, Newfoundland lands in the middle of Canada’s car insurance rates. Auto insurance rates in Newfoundland are cheaper than in some other provinces because you’re not required to take accident benefits as part of your mandatory coverage package.
However, there are some cities in Newfoundland where you have to pay more than the average rates, like St. Johns, where the average rate is around $102 more than the provincial average. Here’s a closer look at the most expensive cities for car insurance in Newfoundland:
| City | Average car insurance rate |
|---|---|
| St. Johns | $1,179 |
Quote data from MyChoice.ca, October 2024
Least Expensive Cities to Insure a Car in Newfoundland
Fortunately, some cities in Newfoundland still boast insurance rates well below the provincial average. For example, you can get car insurance in Grand Falls-Windsor and Gander for around a hundred dollars less.
Here’s a look at the cheapest cities for car insurance in Newfoundland:
| City | Average $0;| $883 | |
|---|
Quote data from MyChoice.ca, October 2024
Car Insurance Cost in Newfoundland by Age
The table below offers a concise overview of car insurance costs by age in Newfoundland. It highlights the varying premiums for different age groups, highlighting the price variance from a young driver compared to an older, more experienced driver.
| Age group | Average cost | Annual savings with MyChoice |
|---|---|---|
| 18-20 | $3,907 | $777 |
| 21-24 | $2,233 | $444 |
| 25-34 | $1,489 | $295 |
| 35-44 | $1,095 | $217 |
| 45-54 | $897 | $178 |
| 55-64 | $763 | $152 |
| 65+ | $870 | $172 |
Quote data from MyChoice.ca, October 2024
Car Insurance for Specific Demographics in Newfoundland
All drivers in Newfoundland must have car insurance to drive legally, regardless of age, race, gender, or any other demographic category. But you may be wondering whether specific demographics get special treatment regarding car insurance in the province.
Here’s a look at whether falling into certain demographics changes how you get insurance.
Car Insurance Cost in Newfoundland by Driving History
Insurers check your driving history to calculate rates because it often predicts future driving behaviour. That’s why past traffic violations may result in higher insurance rates.
Driving violations stay on your record for years, so your rates will be higher than normal for a long while. Here’s a look at how a bad driving record influences your Newfoundland auto insurance premiums:
| Driving violation | Average annual car insurance rate |
|---|---|
| Clean driving record | $1,095 |
| Insurance cancellation due to non-payment | $1,795 |
| Licence suspension for alcohol-related offences | $1,313 |
| One accident | $2,408 |
| Speeding ticket | $1,422 |
Quote data from MyChoice.ca, October 2024
Other Factors That Affect Car Insurance Prices in Newfoundland
In addition to the factors we’ve covered above, more things influence your Newfoundland car insurance rates. Here are some of them:
Main Mode of Commuting in Newfoundland
Out of over 179,000 commuters in the province, nearly 90% of them travel by car, truck, or van. Walking and other methods are the second and third-most popular commuting methods in the province, while public transit users only take a 2% share of the province’s commuters. Check the table below to learn more about how Newfoundland commuters travel:
| Main mode of commuting | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 179,070 | 100.0 |
| Car, truck or van | 159,145 | 88.9% |
| Car, truck or van – as a driver | 143,960 | 80.4% |
| Car, truck or van – as a passenger | 15,190 | 8.5% |
| Public transit | 3,580 | 2.0% |
| Walked | 8,680 | 4.8% |
| Bicycle | 235 | 0.1% |
| Other method | 7,435 | 4.2% |
Commuting Duration in Newfoundland
Over half of Newfoundland’s commuters take under 15 minutes getting to work, which means commute times are generally very short. In fact, 82.5% of the province’s commuters spend under 30 minutes on the road, making commutes of over 30 minutes very rare. Here’s a detailed look at the commute times in Newfoundland:
| Commuting duration | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 179,070 | 100.0 |
| Less than 15 minutes | 92,060 | 51.4% |
| 15 to 29 minutes | 55,765 | 31.1% |
| 30 to 44 minutes | 15,825 | 8.8% |
| 45 to 59 minutes | 5,090 | 2.8% |
| 60 minutes and over | 10,330 | 5.8% |
Who Provides Car Insurance Quotes in Newfoundland?
Insurance brokers, agents, aggregators, and direct writers provide car insurance quotes in Newfoundland. Each insurance quote has its own benefits:
The Most Common Questions About Car Insurance in Newfoundland
Are Newfoundland drivers allowed to carry digital proof of car insurance?
Newfoundland drivers are allowed to carry digital proof of their car insurance. You can use an eSlip instead of physical insurance proof when a law enforcement officer asks for your documents.
Is there a cancellation of sales tax on car insurance in Newfoundland?
The Newfoundland government cancelled all sales tax on car insurance in 2019.
What is the cheapest car insurance in Newfoundland for new drivers?
The cheapest car insurance in Newfoundland for new drivers will depend on your budget and needs. Use MyChoice to compare insurer offers and find the cheapest policy.
Do I need winter tires in Newfoundland?
Winter tires aren’t required by law in Newfoundland, but the government encourages their use to improve safety.
Does Newfoundland have no-fault insurance?
Newfoundland uses a direct compensation model as part of the no-fault insurance system. This means the person who isn’t at fault for an accident files a claim with their own insurer instead of the at-fault driver’s insurer.
Is there high-risk auto insurance in Newfoundland?
There is high-risk auto insurance in Newfoundland, which you can get from select insurance companies or the Facility Association.
How do I file a car insurance claim in Newfoundland?
You can file a car insurance claim in Newfoundland by contacting your insurer as soon as possible after an accident.
How long do violations stay on my driving record in Newfoundland?
Traffic violations stay on your Newfoundland driving record for two years but can affect insurance rates for longer.
How long do I have to notify my insurance company of vehicle change in Newfoundland?
You have to notify your insurance company immediately when changing vehicles in Newfoundland. Otherwise, you won’t have a valid insurance policy and can’t drive the car.
Is car insurance mandatory in Newfoundland?
Car insurance is mandatory in Newfoundland. Driving without car insurance may result in fines or licence suspensions.
Is insurance on a leased car more expensive in Newfoundland?
Insurance on leased cars in Newfoundland requires $1,000,000 worth of TPL coverage, so it’s more expensive than owned cars.
Is roadside assistance required in Newfoundland?
Roadside assistance isn’t required in Newfoundland, but it’s still highly recommended.
What are the penalties for driving without insurance in Newfoundland?
Driving without insurance in Newfoundland may result in fines, vehicle impoundment, and licence suspensions.
What is the minimum legal driving age in Newfoundland and Labrador?
The minimum legal driving age in Newfoundland and Labrador is 16. If you’re under 19, you also need parental consent before getting a learner’s licence.
What kind of auto insurance system do Newfoundland and Labrador have?
Newfoundland and Labrador have a direct compensation auto insurance system, where the person who isn’t at fault files a claim with their own insurer.
When did taxes come off auto insurance in Newfoundland?
The Newfoundland government eliminated the retail sales tax on auto insurance in 2019.
Who handles auto insurance complaints in Newfoundland?
Auto insurance companies in Newfoundland usually have a complaints liaison officer or ombudsman to handle complaints.
Who sets auto insurance rates in Newfoundland?
Insurance companies set auto insurance rates in Newfoundland independently, but they must be approved by the province’s Board of Commissioners of Public Utilities.
Why are insurance rates in Newfoundland and Labrador so high compared to the rest of Atlantic Canada?
Insurance rates in Newfoundland and Labrador are high compared to the rest of Atlantic Canada because drivers in the province make lots of claims, meaning insurers need to pay more money for insurance benefits.