Motorists in Halifax are really starting to benefit from changes made to the car insurance system over the last decade. Auto insurance reforms began in 2003 and have proven very effective at limiting claims costs. The provincial government has also created provisions where at fault drivers in small collisions without personal injuries can re-pay costs and essentially remove any premium increases from their coverage.
Provincial Insurance System
Mandatory car insurance coverage is one of the higher minimum third party liability rates in Canada, at $500,000. However, like many drivers in Canada, the average Halifax driver opts for $1 million in coverage. Accident benefits are mandatory as well, covering medical and rehabilitation costs, funeral expenses and loss of income provisions. Finally, uninsured and unidentified motorist coverage protects the insured driver in a collision where the other motorist is operating illegally without insurance, or in cases where a hit and run driver flees the scene without being identified.
Halifax drivers can opt for additional accident benefits coverage if they are not already covered under other private or group insurance policies.
Additional Car Insurance Coverage
Mandatory coverage deals with personal injuries, making sure that people are protected against accidental damage. Not so for cars. That’s entirely up to the owner. Insurance coverage to protect against damage or loss to vehicles is optional for Halifax drivers. This generally comes in two flavors: collision and comprehensive coverage, through a combination of both, called all perils insurance, is often available.
Collision insurance protects the owner against collision repair costs, above a certain dollar amount, called a deductible. The lower the deductible, the higher the premium cost, so a driver can adjust his car insurance costs by adjusting the deductible.
Comprehensive coverage protects against damage and loss in non-collision incidents, such as theft, vandalism or fire. Comprehensive coverage is also subject to deductibles.
Additionally, there may be other options available to extend coverage. For example, you may add an option to ensure that you’re covered for replacing a vehicle after it’s written off, not simply paid out its cash value at the time of the accident.
Factors that Affect Car Insurance Costs in Halifax
As with any type of insurance, premiums are calculated by risk factors. Each insurance company has their own way to assess these factors, so the same coverage may have different prices depending on which company is quoting. Typical factors include:
- Gender (although this is under review in Nova Scotia)
- Your home location
- How your car is used, including how far you drive daily
- Who else uses your car
- The driving records of listed drivers
- The type of car you drive and its theft rating
Since 2004, insurance companies cannot use age as a risk factor, saving drivers under 25 the high premiums they experience under other provincial systems.
Using QuoteFinder’s car insurance calculator is the perfect way to start the search for the insurer who can offer the best deal for your situation. Enter your postal code and other car and driving information, and QuoteFinder will search through dozens of car insurance companies to provide you with the lowest cost options for coverage.