If you own an automobile in New Brunswick, it’s mandatory under law that you have automobile insurance. All vehicles registered and driven in New Brunswick must have the following mandatory minimum levels of insurance coverage to protect yourself and the public.
Third party liability insurance
This covers you as a vehicle owner and as a driver if you injure someone or damage someone else’s property with your car. It does not cover the cost of repairs to your own vehicle. The minimum liability coverage required in New Brunswick is $200,000. However, most New Brunswickers choose to purchase additional coverage.
Direct compensation—property damage (DC-PD)
Direct compensation means that even though someone else causes the damage, you collect directly from your own insurer, instead of the person who caused the damage. This covers you for damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, to the extent that another person was at fault for the accident.
This coverage provides medical and rehabilitation expenses, funeral benefits, death benefits, and loss of income benefits if you or your passengers are injured in a car accident. It is a “no-fault” coverage and your own insurer pays it, even if you are not-at-fault for the accident.
Uninsured automobile and unidentified automobile insurance
This covers you in the event that you are injured in an accident caused by an uninsured driver or in a hit-and-run accident where the automobile or driver cannot be identified. It also covers damage to your vehicle caused by an identified but uninsured driver. Recovery for damage to your vehicle is subject to a $250 deductible.
Collision or upset insurance
This coverage pays for losses caused when an insured vehicle is involved in a collision with another object, including another vehicle, or rolls over. Recovery for damage to your vehicle is usually subject to a deductible, if you are found at-fault (even partially).
This covers such risks as damage to your own vehicle caused by theft, vandalism, or fire. There is also a deductible for this coverage, except for theft or fire of the entire vehicle.
Most auto insurance policies do not cover the loss of personal possessions, such as golf clubs, clothing, or personal electronics stolen from your vehicle. Your home or tenant insurance usually covers personal possessions stolen from your vehicle. Check your home insurance policy to find out if it provides coverage for theft of personal items from your vehicle.
SEF 44 Family Protection Endorsement
One of the most common endorsements is the SEF 44 Family Protection Endorsement. The SEF 44 provides additional coverage if you or a family member are injured by another driver who does not have enough insurance to pay the injury claim. Under the SEF 44 you can claim the difference between the other driver’s coverage and the amount of the injury claim, up to the coverage that you have, on your own policy. The SEF 44 also applies if the other motorist is not insured.
There is other optional insurance you can purchase known as “endorsements”. Speak with your insurance professional to determine which endorsements may best meet your needs.
You may be offered “GAP” insurance when purchasing a vehicle from an automobile dealership. This product is sold when a vehicle is being financed to cover the difference between the loan values on the car and the cash value paid out by your insurance company if your car is in an accident and is written off. Before purchasing this coverage check to ensure you are dealing with a licensed insurance agent or broker and speak with your insurer to be sure that you are not already covered. If you are not covered, your insurance company may be able to offer a similar product.
FCNB has a copy of the Standard Automobile (Owner’s) Policy document available for download.