Understanding Your Premium
What Factors Affect My Auto Insurance Premium?
In New Brunswick, automobile insurance rates are based on several factors which include:
|Your Location||Every area of New Brunswick has different claims experience due to variations in local conditions including weather, road conditions, mix of vehicles on the roads and driver history. (See Territories)|
Type of Vehicle - The make, model and year of vehicle do affect a person’s insurance premium.
Use of a vehicle has an effect on insurance premiums (e.g. pleasure only, commuting to and from work, business use).
|Your Driving Record||
Years Licensed - The longer a driver is licensed normally means a lower possibility of having an accident. For newly licensed drivers, see details on First Chance Discount available in New Brunswick
Accidents - Having an at fault accident on your driving record can impact your rates for a number of years
Driving convictions can increase the cost of a driver’s insurance premium; the better the driving record, the lower the premium.
The more comprehensive your coverage, the higher your premium may be.
Limits of Coverage - Higher third party liability limits usually result in an increase in premium.
Deductibles that apply to collision, comprehensive and specified perils coverage represent the amount of a loss for which the policyholder is responsible before the insurance policy responds. A higher deductible can reduce premium.
Most insurance companies offer automobile insurance discounts, though they may vary from company to company. A few examples of possible discounts are:
If a policyholder has more than one vehicle insured with the same company.
If a policyholder has both their automobile policy and their property policy insured with the same company.
If a driver is claims free for a number of years.
If an occasional driver is living away from home while at school.
If a driver owns a hybrid vehicle.
If a driver agrees to utilize a usage based insurance (UBI) device.
First Chance Discount
New Brunswick is the only province that has a regulation for rating of inexperienced drivers (those with less than 6 years of driving experience in New Brunswick or elsewhere in North America). This First Chance Discount will grant the same status to new drivers as those with 6 years clear driving experience, if they have taken an approved driver training course. New drivers will be awarded 3 years of clear driving experience, if they have not taken an approved driver training course.
What Factors DO NOT Affect My Auto Insurance Premium?
- Gender, Age, and Marital Status - it is prohibited by legislation.
- The colour of your car
- Whether your car is Foreign or Domestic
- Parking Tickets
What to do if your car insurance premiums increase?
Re-evaluate your needs - Review your insurance needs with your insurance company.
Shop around - Shop around, get quotes and compare prices from different companies and brokers to make sure you are getting the best deal.