Skip to content


Car Insurance

Car Insurance - New Brunswick

Mandatory Coverage

If you own and operate an automobile, you are required by law to insure it. The mandatory coverage in New Brunswick is comprised of:

Third-Party Liability

What is it?

If you are responsible for an accident causing injuries or fatalities, or if your vehicle damages someone else’s property, you may be legally responsible.


You lose control of your vehicle on ice and cross the center line striking a van head on.

Role of Third-Party Liability coverage

Your insurer will defend you in case of a civil law suit and will make any payment required by law on your behalf, up to the amount specified in your policy. Minimum coverage for Third-Party Liability is $200,000, but most drivers choose $1 million.

Direct Compensation – Property Damage

What is it?

This coverage applies if you are the owner of a vehicle and you are involved in an accident in New Brunswick for which you are not entirely at fault, and at least one of the other vehicles involved is insured under a motor vehicle liability policy issued by an insurance company listed or filed in New Brunswick.


  • A car backing out of a driveway hits you as you are driving past.
  • You are rear-ended at an intersection as you wait for the light to change.
  • Your vehicle is parked in your driveway when a car loses control and hits it.

Role of the Direct Compensation – Property Damage coverage

Your insurer will pay you for the repairs to your vehicle and its contents and compensate you for the loss of use of your vehicle. (This section of your policy applies when you are not at fault.)

The amount payable will depend on the degree to which you were not at fault as determined under the Fault Determination Regulation(PDF).

If both you and the other party are deemed equally responsible (50%-50%), you will receive your indemnity from your own insurance company.

You will receive half the amount under Direct Compensation (this is the portion for which you were deemed not responsible); the other half is covered under the Collision section, if you have this coverage.

In both cases a deductible may apply.

Uninsured Automobile Coverage

What is it?

If you are injured or killed by an uninsured or unidentified vehicle whose owner or driver cannot be identified or your vehicle is damaged by a vehicle for which the owner or driver is identified but uninsured, you could be held responsible.


  • If an identified but uninsured vehicle rear ends your car while you are stopped at an intersection, the damage to your vehicle will be covered.
  • If you are seriously injured after an unknown driver rear-ends you on the road and leaves the scene, you're entitled to recover damages (that you would be legally entitled to from that unidentified person) up to the limits in your policy.

Role of the Uninsured Automobile coverage

Your insurance covers you for losses for which the owner of the responsible vehicle would normally be accountable had he or she been insured and/or identified. In this case, your coverage would be calculated based on your percentage of non-responsibility in the accident, and subject to the policy deductible and limits.

Note:Damage to the vehicle caused by a hit-and-run is not covered under this section unless the driver or owner is identified.

Accident Benefits

What is it?

If you (or any other person entitled to benefits under this coverage) are in an accident, regardless of who is at fault, this may cover a portion of the incurred expenses.


  • You break a leg in an accident and need rehabilitation. The rehabilitation and other medical costs may be covered as a supplement to any basic health insurance you already have, subject to your insurance policy limits.
  • A vehicle loses control, hitting your vehicle and injuring you. If you carry insurance, your loss of income may be covered, subject to your insurance policy limits.

The expenses that may be covered following an accident are:

  • medical expenses
  • rehabilitation expenses
  • loss of income from employment
  • funeral expenses

Death benefits may also be paid.

In case of discrepancy between the information provided on this website and your insurance policy, your insurance policy prevails. Remember, the exclusions and limitations specified in your policy apply in all circumstances.

The information and examples provided in this section are intended as general information only. This does not constitute legal or insurance advice, nor does it pertain to determination of fault. In all cases, you should speak to an insurance advisor before acting. Your insurance policy contains limitations and restrictions which vary by province and may affect your coverage and/or determine whether or not benefits will be payable.


Get an auto quote

It’s easy and takes less than
5 minutes!

Start My Quote


Need Help?1-800-338-0218


File a claim1-866-454-8910