Newfoundland and Labrador 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).
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.