Drivers Need Car Insurance in Fredericton
Located in the west-central part of the province of New Brunswick, the capital city of Fredericton lies along the eastern-flowing Saint John River. Residents of Fredericton have many forms of entertainment that encourage them to drive around town. A thriving artistic community, the city boasts museums, art galleries and a popular theatrical venue. International jazz, rock and blues artists are attracted annually to the area's music festivals. With all these incentives to get on the road, obtaining quality car insurance in Fredericton is important.
While 84% of people in Canada own their own vehicles, multiple modes of transportation are available in Fredericton. The city provides bus service Mondays through Saturdays, and an international airport enables residents to easily travel locally or abroad.
Residents in the New Brunswick area register the lowest collision frequency rate of all the four Atlantic provinces, at 5.1%. However, drivers should use extra caution on Fridays, which traditionally see 19% of multi-vehicle accidents and the majority of accidents involving lane changes, intersection collisions and rear-end crashes.
Types of Car Insurance in Fredericton
Car insurance comprises various coverage options intended to provide financial protection in the event of an accident or other cause of vehicle damage. There are six common types of auto insurance coverage.
Liability Coverage
Liability insurance is mandatory in Fredericton. There are two components to liability coverage: bodily injury liability, which pays damages for injuries caused to another person, and property damage liability, which pays for damages caused by the insured vehicle to the property of another person.
Collision Coverage
Collision coverage is often required if a vehicle is financed or leased. It helps to pay for repairs or replacement of a car in the case of an accident involving another vehicle or stationary object.
Comprehensive Coverage
Comprehensive vehicle insurance pays for damage from issues such as hail, fire, theft or vandalism. This type of coverage offers the highest level of protection and is often required by the lender if the vehicle is leased or financed.
Medical Payments Coverage
Medical payments coverage helps when the insured, their passengers or other family drivers are injured in an accident in the insured vehicle. Covered expenses typically include visits to the doctor or emergency room, diagnostic tests and surgery.
Personal Injury Protection
Also known as PIP, personal injury protection helps to pay for personal medical expenses following an accident. In addition to direct medical costs, it often covers associated expenses such as lost income or childcare.
Uninsured/Underinsured Motorist Coverage
Even though liability coverage is a legal requirement, some motorists still operate their vehicles without it. In case of an accident involving an uninsured motorist or a driver with insurance limits insufficient to cover the costs associated with the accident, uninsured/underinsured motorist coverage is a valuable asset.
Optional Coverage Types
Sometimes, auto insurance is needed in areas that are not covered under typical policies. Insurance brokers are usually able to craft specific policies to cover the needs of the individual. Optional coverage is often available in the following areas:
- Classic car insurance
- Gap coverage
- New car replacement
- Rental reimbursement
- Ride-sharing coverage
- Towing and labour cost
Legal Requirements
In New Brunswick, the minimum mandatory auto insurance requirement is $200,000 in third-party liability, as well as direct property damage compensation, accident benefits and uninsured auto insurance. Additional coverage, including collision, comprehensive and gap insurance, can be purchased as needed.