Newfoundland and Labrador Car Insurance

Your guide to car insurance in The Rock.

Car insurance in Newfoundland and Labrador

Auto insurance in Newfoundland and Labrador

In Newfoundland and Labrador, auto insurance is available from a wide array of private companies who compete with one another to allow consumers to shop around for a better rate. Newfoundland insurance rates fall among the lower rates in Canada, with the average driver paying $729 per year. By comparing car insurance rates, drivers can find cheaper car insurance and save on their auto insurance premiums. 


Auto insurance reform in the province in 2004 helped to bring rates down for drivers by mandating a $2500 deductible on pain and suffering payments, along with other changes. Over time, however, rates have increased. The Provincial Government is currently reviewing the Auto Insurance Act and will be announcing changes in fall 2018.

Newfoundland and Labrador car insurance laws 

As in all provinces, Newfoundland and Labrador drivers must carry a legally determined minimum insurance coverage in order to be on the road. These minimum limits ensure that all drivers are financially responsible in the event of an at-fault accident. 

The current limits for auto insurance in Newfoundland are:

  • $200,000 in liability coverage per accident
  • Uninsured and unidentified motorist coverage

Newfoundland does not require drivers to carry Accident Benefits coverage, but most drivers choose to purchase this coverage, which includes medical payments, disability coverage, and death benefits coverage. In most provinces, this type of insurance is mandatory. Many Newfoundland drivers also choose to increase their liability coverage to limit financial exposure and risk.

Other optional coverage can also be purchased, including comprehensive and collision coverage to protect your vehicle in an at-fault accident or a non-accident scenario such as theft.

Newfoundland and Labrador auto insurance changes in 2020

The automobile insurance legislation made some changes in 2020, with a focus on keeping rates as low as possible without cutting benefits.

The following changes are effective January 2020:

  • A person who has sustained bodily injury is required to apply for accident benefits coverage.
  • An injured person must notify their insurer of their decision to commence claim adjustment and settlement action within 120 days.
  • All bodily injury claims will be subject to a deductible for pain and suffering. The deductible will double from $2,500 to $5,000.
  • Motorists with property damage claims for which they are not at fault will deal with their own insurer.
  • The cancellation of any auto insurance policy must be reported by the insurer to the Registrar of Motor Vehicles.
  • Insurance companies are required to produce full filings every three years.
  • Taxi companies will be able to negotiate rates with willing insurers.
  • Auto insurance legislation will be reviewed every five years.
  • Usage based insurance, including telematics, will be permitted by insurers. Drivers can participate in any telematics program offered by their insurer.
  • Insurers are required to offer a discount for winter tires.

Frequently asked questions about Newfoundland and Labrador car insurance

How are auto insurance rates determined in Newfoundland and Labrador?

Auto insurance rating in Newfoundland and Labrador

Newfoundland’s private insurance companies determine the rate for each driver based on a combination of factors. Among the top factors that go into determining your rate are your driving record including tickets or at-fault accidents, the value of the car you drive as well as the make and model, and your driving habits including the length of your daily commute.

The 2004 auto insurance reform prevents auto insurance companies from denying coverage or increasing rates solely on the basis of any of these factors:

  • Age and gender
  • Age of the vehicle
  • Accidents in which you were not at fault
  • Lapses in insurance except when tied to a license suspension for a violation of traffic laws
  • Previously being refused insurance by another company
  • Being insured with Facility Association

How do Newfoundland and Labrador insurance companies determine fault in an accident?

Accident fault and claims in Newfoundland and Labrador

In Newfoundland, the adjusters for the insurance companies involved in the claim will determine who is at fault. Each insurance company uses its own guidelines to come up with a fault determination.

Newfoundland is unusual in Canada in that it has no type of no-fault benefits. The insurance company for the at-fault driver is responsible for paying out on damages to the other driver’s vehicle as well as for injuries. Accident benefits are not a mandatory coverage in Newfoundland, but are available to drivers who choose to add them to their insurance policy.

The handling of claims is governed by insurance regulations; the 2004 reforms helped to reduce the cost of lawsuits, but drivers can still be sued for pain and suffering.

What laws affect drivers in Newfoundland and Labrador?

Newfoundland drivers must follow all of the rules of the road while behind the wheel, including the law requiring mandatory auto insurance. Drivers must prepare to present proof of insurance to law enforcement when pulled over or involved in an accident.

Drivers are required to stop when involved in an accident. A police report must be made if there are injuries or if the damage appears to be in excess of $1000.

Tickets in Newfoundland can affect your auto insurance rates. While insurance companies can each determine what tickets they will charge for and how much the rate increase will be, as a general rule major violations will be more costly than minor ones.

What were the changes to car insurance premiums in Newfoundland and Labrador in 2018 and 2019?

The biggest increase to car insurance premiums of the past decade occurred between 2018 and 2019 , with year-over-year growth exceeding 5%.


Ten years of average auto insurance premiums in Newfoundland and Labrador

Year Average annual premium Average monthly premium Year over year change
2009 $975.00 $81.25 4.84%
2010 $998.00 $83.17 2.36%
2011 $1,013.00 $84.42 1.50%
2012 $1,018.00 $84.83 0.49%
2013 $1,045.00 $87.08 2.65%
2014 $1,063.00 $88.58 1.72%
2015 $1,088.00 $90.67 2.35%
2016 $1,114.00 $92.83 2.39%
2017 $1,130.00 $94.17 1.44%
2018 $1,168.00 $97.33 3.36%
2019 $1,229.00 $102.41 5.22%

Ten years of average auto insurance premiums in Newfoundland and Labrador

2019 average annual premium
$1,229
2019 average monthly premium
$102.41
2019 year over year change
5.22%

Shopping for car insurance in Newfoundland and Labrador

How to buy auto insurance in Newfoundland and Labrador

Newfoundland drivers can find multiple quotes and policies through brokers and agents, or by contacting the insurance company directly. Going direct is sometimes perceived to be the more economical option, but comparing rates typically provides you with a better range of rates and more savings. 


Insurance companies in Newfoundland can determine their own rates for each driver, although they must do so in accordance with the insurance legislation put in place by the government to protect drivers. This is why you see such a wide range of quotes, and also why comparing car insurance quotes represents the best opportunity to save.