New Brunswick Car Insurance Basics

Drivers in New Brunswick can buy car insurance coverage from their choice of the approximately 65 companies licensed to sell products in the province. Under provincial law, the minimum level of coverage required to drive legally is $200,000 in liability coverage for a single accident.

Drivers can chose to buy a policy with a higher limit if they wish. If a claim includes personal injuries and property damage, the amount that an insurance company will pay for property damage is capped at $20,000.

In 2003, the province introduced reforms to the insurance system to deal with the ever-rising cost of coverage. Insurance companies had raised their rates in response to paying out on numerous claims for pain and suffering. As a result, some residents were unable to find affordable coverage.

Under the new law, all claims for pain and suffering for injuries that were non-permanent in nature are capped at a maximum of $2,500. This provision covers sprains, strains and soft tissue injuries that take some time to recover from but which are not going to alter the accident victim’s life in an ongoing manner. In this way, the cost of paying out claims for New Brunswick car insurance companies is managed without affecting the level of funds available as compensation for lost wages and medical care following an accident.