Prince Edward Island Car Insurance

Learn about auto insurance in PEI

Prince Edward Island car insurance premiums are among the most affordable in Canada. Even so, it is still important for drivers to regularly compare their options to get the best car insurance in PEI. Whether driving to the Cavendish beaches, on the Confederation Bridge or commuting in and around Charlottetown, comparing car insurance in PEI will help you save more.

On this page, you will learn how car insurance works in the province. Get tips to find the more affordable premiums and save.

NOTE: Auto insurance is not available through ThinkInsure in PEI.

Key takeaways about PEI car insurance

PEI has the second most affordable car insurance rates in Canada
Insurance is mandatory and is available through public insurance companies via brokers
PEI uses a no-fault insurance system for claims

How does PEI car insurance work?

All individuals are required to have a driver’s licence and insurance to operate an automobile. You are required to carry a minimum of $200,000 in third party liability. You can get this from private auto insurance companies in PEI.

Who regulates PEI auto insurance?

Two governing bodies in the province regulate insurance. The Island Regulatory and Appeals Commission and the Office of the Superintendent of Insurance set auto insurance premiums. Once rates are set at this level, insurance companies can provide these premiums to customers. All insurers must get approval for rate changes.

Does PEI have no-fault insurance?

Prince Edward Island operates under a no-fault insurance system. This means you deal with your insurance provider if you file a claim for a crash or damage. You do not have to deal with other insurers.

You can take legal action against an at-fault driver to cover additional damage above and beyond your mandatory accident benefits coverage.

What is the mandatory car insurance in PEI?

There are four parts to mandatory car insurance in PEI. All vehicle owners must have the following:

Section A - Third party liability: Protects you from damage you cause while driving.
Section B - Accident benefits: Covers medical costs if you are in an accident, no matter who is at fault.
Section D - Uninsured motorist: Covers medical costs if an uninsured motorist injures you.
Direct compensation property damage (DCPD): Covers your vehicle and items within if they are damaged. It also covers loss of use.

Here are the supplementary benefits included as part of your mandatory coverage:

Medical payments: Up to $50,000/person. 4-year limit.
Funeral expense benefits: Up to $2,500.
Disability income benefits: Maximum $250/week.
Death benefits: Death of head of household $50,000, death of spouse $25,000. Death of dependant $5,000.
Right to sue: Yes, if deemed minor. The pain and suffering maximum is $7,952. Right to sue for economic loss.

Optional PEI car insurance

You can add four main types of optional insurance to your plan. Adding this protection will increase how much you pay.

Collision insurance: This protects if your vehicle is damaged in an accident.
Comprehensive insurance: Get coverage for damage to your car from non-accident events. For example, vandalism, falling objects, and theft.
Specified perils insurance: You have coverage for threats listed in your policy.
All perils insurance: You have protection from all threats unless they are listed as an exclusion.

Policy endorsements in PEI

You also have the option to add extra forms of protection called insurance endorsement. These are specific policy clauses and protections.

Here are some of the common:

Loss of Use
Legal Liability for Physical Damage to a Non-Owned Automobile
Limited Waiver of Depreciation
Family Protection

How much is car insurance in Prince Edward Island?

The average car insurance in PEI is one of the most affordable in Canada. An experienced driver with a clean record will pay about $885 per year for a policy. This works out to a very reasonable $74 per month.

How do PEI car insurance rates compare to other Provinces?

Only drivers in Quebec pay less for auto insurance than Prince Edward Island. For example, Ontario car insurance rates are about $800 more per year on average. Residents pay about $400 per year less than the national average and about $1,000 per year less than B.C., the province with the highest costs.

What are the top factors that affect your PEI car insurance?

A diverse collection of factors affect how much you pay for insurance. Some of them you can control, such as the car you drive, and others you cannot, such as your age and gender. This combination of things makes up your unique insurance profile. Here are the top things that help insurers determine your premiums:

Age, gender, driving experience.
Vehicle make and model.
Claims history.
Driving habits.
Driving record.
Optional coverage and endorsements, plan limits.
Deductible.
Applicable discounts.

How do I get lower car insurance in PEI and save more?

Even though you have some of the most affordable insurance in the country, you still need to take action to keep it that way. Here are some ways you can ensure you continue to get the lowest insurance:

Bundle: Bundle insurance policies with the same company (multiple cars, home, etc.).
Deductible: Increase your deductible if you are in a financial position to do so.
Claims: Avoid filing small claims.
Driving: Keep a clean driving record – stay ticket and accident-free.
Automobile: Drive an insurance-friendly vehicle.
Security: Add a monitored alarm.

PEI car insurance FAQs

How to get car insurance in Prince Edward Island?

Insurance is available through private insurance companies and brokers. You can compare premiums online each time your current policy comes up for renewal.

What is the best car insurance company in PEI?

This is a common question asked by consumers and for good reason. You want to get the lowest rates and deal with a good PEI insurance provider. Since there are so many factors to consider, it is challenging to pinpoint one provider that is the best. It depends on the coverage type and the services you value most. Compare options from multiple providers to find the company that meets your unique requirements.

Is car insurance affordable in PEI?

Yes. Insurance is affordable, comparatively speaking. The province has the second most affordable rates in the country. Many individuals have a policy that has them paying less than $1,000 per year.

Why are rates so affordable in PEI?

In 2003, the province significantly changed how auto insurance is administered. It made it the law that all insurers must receive approval from the IRAC for all rate changes. As a result, costs dropped significantly and have remained much lower ever since.

What is the penalty in PEI for driving without insurance?

You are required to have valid insurance to operate an automobile. If you are caught driving without insurance, you face fines between $600 and $2,000 for your first offence. Additionally, you could face a licence suspension and have your vehicle impounded.

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

PEI uses a demerit points system. These are applied to your driving record. Demerits added to your record because of driving infractions will stay on your record for 2 years from the date of the conviction.

What are the steps in the PEI licensing program?

PEI uses a three-stage driver licencing program. You must complete the following steps to become fully licenced:

Stage 1 (L): This is the Class 7 learner’s permit. You must be 16 years old, and pass a written test about road rules, signs, and safe driving.
Stage 2 (G): This is the Class 5 driver’s licence. If you complete a driver training program, you must have a stage 1 licence for one year or 365 days. You will have to pass a road test and remain in this stage for one year.
Stage 3 (G): This is the Class 5 driver’s licence. You must remain in this stage for one year and display the G decal on your windshield.

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2024-11-14

Auto Insurance in Prince Edward Island

Find out about getting car insurance in PEI and ways to save money on your policy.