Northwest Territories Car Insurance

Learn about auto insurance in the Northwest Territories

Car insurance in the Northwest Territories (NWT) is the most expensive of the territories in Canada. As the most populated of the three, more vehicles are on the roadways, especially in Yellowknife. Whether driving up to Great Slave Lake, the Canadian Arctic Archipelago, or simply commuting to work, you need reliable and affordable auto insurance in Northwest Territories.

On this page, you will learn how car insurance works in NWT and get tips to find the lowest premiums.

NOTE: Auto insurance is not available through ThinkInsure in Northwest Territories.

Key takeaways about Northwest Territories car insurance

NWT has the most expensive car insurance of the territories, but it's still one of the most affordable in Canada
Car insurance is mandatory.
NWT uses a hybrid no-fault system

How does car insurance in Northwest Territories work?

cars passing through the city in Yellowknife

All drivers must have a valid insurance policy. Private insurance companies offer coverage. Insurers set rates individually based on the current state of the market and their unique formula for assessing risk. You can buy your plan directly from an insurance company or through a broker.

Insurance is regulated in NWT by the Office of the Superintendent of Insurance. It operates using a hybrid version of a no-fault system. This means that you have third-party liability, but you also have the right to sue an at-fault party for damages and expenses above what is covered in your plan.

What type of car insurance is mandatory in Northwest Territories?

All drivers are required to carry the following minimum amount of coverage when driving:

Third-party liability: $200,000 in coverage. Payment for property damage is capped at $10,000.
Uninsured motorist: You and your family are protected if you are injured by another driver who does not have valid insurance.
Accident benefits: You receive compensation to cover medical bills for accident-related injuries.

Here is a summary of the benefits included in mandatory plans:

Medical coverage: Up to $25,000 per person. 4-year limit.
Funeral expense benefits: Up to $1,000.
Disability income: 80% of gross wages, up to $140 per week. 104-week limit.
Death benefits: $10,000 for the head of the household or spouse. $2,000 for dependants.

Direct compensation property damage (DCPD) is not applicable in the territory.

Optional car insurance in the Northwest Territories

Most residents carry more than the minimum amount of coverage required by law. Even though adding protection will increase your rates, it gives you peace of mind knowing you have more protection against more risk. Optional plans include:

Collision insurance
Comprehensive insurance
Specified perils insurance
All perils insurance
Policy endorsements for more personalized coverage

How much is car insurance in Northwest Territories?

The average car insurance rate for Northwest Territories is $1,050 per year or $88 per month. This is the highest of all the territories. It largely has to do with the fact there are more drivers along with greater driving risk related to less sunlight, more winter road conditions and wildlife. Even so, drivers still pay less than the national average.

How do Northwest Territories auto insurance rates compare to other provinces?

NWT residents pay almost $200 less per year than the average driver in Canada. They spend nearly $900 less per year than the most expensive (B.C.) and only $140 more than Yukon.

How do I get lower car insurance in Northwest Territories?

To get the lowest NWT car insurance, you must actively compare your insurance options. Here are some steps you can take to save:

Shop around when your plan is up for renewal.
Install an anti-theft device.
Drive less – notify your insurer if you do!
Ask your insurance company about discounts.
Pay in full instead of monthly.
Bundle your policies with the same provider.
Keep a clean driving record.
Stay claims free.

What factors affect car insurance premiums in the Northwest Territories?

There are a lot of factors used by insurers to calculate your premiums. Some are based on you individually, and others are based on your region. They include:

You: Age, gender, driving experience, licence type.
Your location: City, neighbourhood, postal code. Prevalence of fraud, theft, and cost of claims in your area.
Driving history: Your driving record, convictions, tickets, years licenced and insured.
Your vehicle: Make and model, how much you drive, who is insured on your policy, and how it is used.
Your policy: Coverage limits, deductible, endorsements, and your insurance provider.

Northwest Territories car insurance FAQs

Do I need auto insurance in the Northwest Territories?

Yes. All drivers in the territory must have a valid insurance policy to drive. You must have at least the minimum mandatory requirements.

What is the penalty for driving without insurance in the Northwest Territories?

Driving without insurance in NWT comes with a fine from $500 to $5,000. Repeat offenders will face additional fines and the possibility of jail time.

How long do driving offences stay on my record in NWT?

All driving offences will stay on your driving record for two years. You will also receive demerit points. These points will be removed two years from the date of your conviction.

How do I get a driver's licence in Northwest Territories?

There are three steps to becoming a fully licenced driver in the Northwest Territories. They are:

Learner’s Licence Class 7: For stage 1, you need to be at least 15 years old. You must pass a vision and written test.
Class 5P: For stage 2, you must have your stage 1 licence for one year. You cannot have any suspensions. You need to be 16 and pass a road test.
Class 5: For stage 3, you must hold your stage 2 licence for 12 months and have no licence suspensions.

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