Fault-Based Newfoundland Has Second Lowest Auto Insurance Rates in Canada

Our province has close to the lowest auto insurance rates among Canadian provinces.  This is a finding of the independent Fraser Institute which recently issued a report.

Prince Edward Island’s average auto insurance premium is $701 annually.  The premium in Newfoundland and Labrador was found to be $703 annually.  These rates are for third party liability insurance.

It is interesting to note that provinces with varieties of no-fault auto insurance schemes had much higher premiums:  for example Manitoba ($1,029), Saskatchewan ($1,063) and Ontario ($1,229).

The full Fraser Institute report is available here.

Not only is Newfoundland and Labrador nearly the cheapest in Canada for auto insurance against third party liability, it is one of only two provinces that have kept a fault-based, tort system largely intact as our compensation system for accidental auto injuries.  The provinces with no-fault systems are quite a bit more expensive.

Doesn’t make the case for auto no-fault as keeping insurance premiums down, does it?  Seems like the Coalition Against No Fault was right, and insurance industry scare tactics were wrong.  No surprise.