Car insurance in New Brunswick is an important part of the cost to own and operate a car. Unlike other forms of insurance, not only do you purchase a car, but only one car. This leads to much higher insurance costs than if you would be looking at two or more cars on your policy. Since New Brunswick is in Canada, it has similar rates to what many Canadian cities have and Ontario typically has the highest rates among provinces.”
How much is car insurance in New Brunswick?
The cost of automobile coverage varies significantly depending on several factors such as where you live and your driving record, although the average monthly premium for 2016 was about $200 dollars.
City-by-city average car insurance premiums in New Brunswick in 2016
The city with the highest average premium (highest rate per $1,000 of claims paid) was Fredericton at $505. The city with the lowest average premium (lowest rate per $1,000 of claims paid) was Saint John at $225. In these numbers “claims paying” refers to the number of times you file a claim with your insurance company.
2016 is the latest year for which data on car insurance prices and claims payment are available.
Do you need car insurance in New Brunswick?
New Brunswick requires compulsory car insurance for all residents of the province that own and operate a vehicle. If you do not have car insurance, you risk being fined by the provincial government, and your vehicle can be taken away and impounded until you are able to obtain coverage.
Insurance companies in New Brunswick
The four largest insurance companies that provide car insurance in NB include:
- Intact Insurance Inc. (fka ING Group) – provides private passenger car insurance
- Aviva Insurance Company of Canada – provides private passenger car insurance
- State Farm Mutual Automobile Insurance Company – provides private passenger and commercial car insurance
- Farmer’s General Insurance Company – provides private passenger car insurance.
Why is Car Insurance so Expensive?
Car insurance is a necessary evil for any driver. The price of your car insurance can vary depending on factors such as what kind of car you have, where you live, and how old you are. With that in mind, here’s the answer to the question “why is car insurance so expensive?” in two parts:
First, this kind of coverage is expensive because it insures against very unfortunate events (e.g., accidents). If someone hits your vehicle and leaves without stopping or without providing their information, then this will be covered by your policy–and they’ll have to pay for it out-of-pocket if they don’t have auto coverage themselves.
Second, you can get state-specific quotes for coverage on a site like BestCarInsurance.com to see just how much you’d pay in your state. Most people who are under 25 years old will have to pay considerably more than an older driver in their 50s. Most states also have laws that require drivers to carry minimum amounts of coverage in order to drive legally.
Note: If you have an old vehicle, it will be more expensive to insure, even if it’s not especially valuable or desirable. That’s because the actual cost of insuring it is higher than the cost of insuring newer models due to what’s called “the salvage factor.
