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)
Your Vehicle 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.
Your Coverage 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.
Your Discounts 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.