At Keyes, we know selecting the right auto insurance policy can feel like a daunting task. It doesn’t have to be. Whether you’re driving along the old highway on the South Shore during a Nor’easter, or navigating that long stretch between Saint John and Fredericton in the winter, the right coverage protects you from the unexpected. Here are 8 things to look at when choosing the right insurance policy.
1. Understand the Basics of Mandatory Coverage
In both Nova Scotia and New Brunswick, drivers are legally required to have:
- Third-Party Liability Insurance: Covers damages or injuries caused to others in an accident. Nova Scotia requires a minimum of $500,000 in coverage, while New Brunswick’s minimum is $200,000. However, many experts recommend opting for at least $1 million for greater protection.
- Accident Benefits: Helps cover medical costs, loss of income, and rehabilitation expenses after an accident.
- Uninsured Motorist Coverage: Protects you if you’re hit by a driver without insurance.
2. Decide on Additional Coverage
While mandatory coverage provides a foundation, it’s most often not enough for those driving in Nova Scotia and New Brunswick. Consider adding:
- Collision Coverage: Pays for repairs or replacement of your car after an accident, regardless of fault.
- Comprehensive Coverage: Covers non-collision incidents like theft, vandalism, or damage from weather events (common in Atlantic Canada’s unpredictable climate).
- Direct Compensation-Property Damage (DCPD): Required in New Brunswick, this covers damage to your vehicle caused by another driver, handled directly by your insurer.
3. Factor in Your Deductible
Some folks often aren’t sure what a deductible is. It’s the amount you pay out-of-pocket before your insurance kicks in after a claim. A higher deductible typically means lower premiums but more upfront costs in an accident. Therefore, you want to make sure you choose a deductible that balances affordability and peace of mind.
4. Evaluate Coverage Limits
When our team at Keyes looks at coverage limits, we’re determining the maximum amount your insurance will pay for a claim. Opting for higher limits may slightly increase your premium but provides added protection, especially in serious accidents where costs can quickly exceed minimum requirements.
5. Assess Your Unique Needs
It’s important to note that your personal circumstances play a significant role in choosing the right policy:
- Driving Habits: If you drive long distances or commute daily, consider higher coverage limits.
- Vehicle Value: New or high-value vehicles may warrant comprehensive and collision coverage, while older cars might not.
- Budget: Balancing affordability with coverage is crucial. Comparing quotes from multiple providers can help you find the best fit.
6. Additional Endorsements to Consider
Endorsements (or policy add-ons) enhance your coverage. Popular options include:
- Emergency Roadside Assistance: Ideal for unexpected breakdowns.
- Rental Vehicle Coverage: Covers rental costs while your car is being repaired.
- Family Protection Endorsement: Ensures you’re covered if a family member is injured in an accident caused by an underinsured driver.
7. Provincial Differences – Nova Scotia vs New Brunswick
While both provinces share similar mandatory coverage, New Brunswick drivers benefit from lower average premiums, thanks to reforms that increased competition among insurers. On the other hand, Nova Scotia often emphasizes safety discounts, such as bundling auto and home insurance or installing winter tires
8. Shop Around and Review Regularly
Keyes team members always recommend reviewing your policy regularly. Your circumstances can change over time, from buying a new car to relocating. Regularly reviewing your policy ensures it continues to meet your needs. Tools like online comparison platforms are a quick way to explore competitive rates.
Final Thoughts
At Keyes, we know choosing auto insurance isn’t just about ticking boxes-it’s about landing on a policy that fits your needs, and allows you and your family to rest easy. By understanding mandatory coverage, customizing your policy with add-ons, and staying informed about provincial differences, you and your family will feel confident hitting the road. If you’re unsure, or wish to chat more, please reach out to one of the Keyes family members. For more on choosing the right policy, please feel free to visit the Insurance Bureau of Canada or check out this great document from the Government of Nova Scotia.
