Auto Insurance Yellowknife
When it comes to Yellowknife auto insurance, trust Nation North to blaze the trail!
Why Do You Need Auto Insurance?
Unfortunately, accidents happen. No matter how clean your driving record is, there’s always the possibility that you may end up involved in a collision.
That’s why auto insurance exists and why it’s mandatory throughout Canada, including in the Northwest Territories.
Auto insurance protects you against financial loss in the event of an accident. It’s a contract between you and your insurance company where you assume part of the risk by paying your deductible, and the insurance company mitigates the risk by agreeing to pay your losses as defined by your policy.
The benefits of auto insurance include:
- Providing a safety net and peace of mind
- Helping to protect you from losing your assets in the event that medical expenses or lawsuits start to add up
- You’re complying with the law
How Auto Insurance Works in Yellowknife
While auto insurance is provided through the government in some provinces, it’s provided through private companies in the Northwest Territories, including in Yellowknife. This means that vehicle owners in Yellowknife are able to consider a variety of different policies to find the best and most affordable for their needs. Auto insurance can be purchased directly from an insurance company but is more commonly purchased through a broker. Brokers usually work with multiple insurance companies, allowing them to compare a range of coverage options and policy price points for their clients.
Although auto insurance is private in the Northwest Territories, it’s still overseen by the government. The Office of the Superintendent of Insurance supervises insurance companies to ensure that coverage options and pricing are fairly regulated.
Although auto insurance is private in the Northwest Territories, it’s still overseen by the government. The Office of the Superintendent of Insurance supervises insurance companies to ensure that coverage options and pricing are fairly regulated.
Is car insurance expensive in Yellowknife? That depends on a whole host of variables. While industry data indicates that the average cost of auto insurance in the Northwest Territories is around $1000 per year (which is significantly less than the average in most provinces), the rates for individual policyholders can vary dramatically.
When calculating the cost of your auto insurance, auto insurance companies consider several factors, some within your control and some outside it. These can include:
- The make, model, and age of your car, as well as its safety ratings, theft ratings, and cost to repair
- Whether you drive your car long distances every day or only use it occasionally
- Your driving record, which includes the length of time you’ve been licenced to drive, along with your history of tickets, accidents, and traffic violations
- Your age and gender
- Your location. The driving history of other policyholders near you as well as the safety statistics for your area (theft, vandalism, road conditions, and more) can all impact your insurance rates.
- The type of insurance you select. Basic coverage will always be cheaper than more comprehensive coverage.
Coverages
In the Northwest Territories, the government requires certain types of coverage to be included in every policy sold, while others remain optional (at the discretion of the buyer). Mandatory insurance as well as enhanced coverage options are outlined below:
Mandatory Coverages
In order to drive legally in Yellowknife, vehicle owners are required to have Liability Coverage, Accident Benefits Coverage, and Uninsured Motorist Coverage.
- Liability Coverage
- Third-party liability coverage protects you in the event that you harm someone or cause damage to their property while driving. In Yellowknife, $1 is the minimum amount of liability coverage you can purchase, but more may be required if you’re financing a car and your lender has additional requirements.
- Accident Benefits Coverage
- In case of an accident, this type of insurance covers your medical costs, no matter who is at fault. Extending to pedestrians and cyclists as well, it can also cover expenses associated with rehabilitation, income replacement, and even funerals.
- Uninsured Motorist Coverage is also included under Accident Benefits Insurance. In case you’re involved in a collision with a driver who is uninsured or underinsured, this type of coverage protects you and your family against injuries sustained as well as damages to your vehicle (if the driver can be identified). It can also protect you in the event of a hit-and-run.
Enhanced Coverages
Enhanced coverages go above and beyond the mandatory insurance required by the government of the Northwest Territories. They can include:
- Specified Perils
- Protects your vehicle from a specified list of perils that often include theft, fire, flooding, hail, and more
- Comprehensive Coverage
- Protects your vehicle from damages that aren’t directly related to a collision. It may include damage from fire, vandalism, falling objects, and more
- Collision Coverage
- Protects your vehicle from damages sustained in a collision with another vehicle or object
- All Perils
- Combines Comprehensive Coverage with Collision Coverage, for the broadest level of protection
- Accident Forgiveness
- Helps protect your insurance rates from increasing in case you are at-fault in an accident
Because every accident is different and each policy unique, there is no simple answer to this question. That being said, if you’re not at-fault in an accident, the other driver’s liability insurance should cover the costs associated with any injuries or damages you sustain.
If you are at-fault, you’ll be responsible to pay your deductible(s) plus any expenses above and beyond what’s outlined in your insurance policy.
A car insurance policy may either be cancelled by the policy holder or by the insurance company itself. Let’s look at each scenario separately:
- If you, the policy holder, cancel your auto insurance coverage prior to the end of your policy term, you’ll typically face cancellation penalties. Also, the longer you’ve had continuous coverage, the lower your premium. For both of these reasons, it’s best to put your vehicle on lay-up instead of cancelling your policy directly. This way you can reinstate insurance coverage as needed without incurring extra charges.
- If your policy is cancelled by the insurance company, it’s usually due to a breach, such as a missed payment. In a case like this, you typically have a 15-day grace period to make your payment and have your insurance reinstated. After that, you’ll likely face higher penalties and/or premiums moving forward.
Yes, it does. But it’s not the only factor that impacts your insurance rates. Other considerations include the make and model of your vehicle as well as its theft and safety ratings. Also your usage of the vehicle, age and gender, personal driving history, location, the type of insurance you are purchasing, and more.
If you’re in an accident in Yellowknife or the surrounding area, it’s essential to ensure that everyone is alright and move yourself and your vehicle to a safe location outside the flow of traffic, if possible. Once the well-being of everyone involved in the accident has been taken care of, you should contact your insurance broker or insurance company as soon as possible.
Nation North’s claims support is available around the clock. When making a claim, be sure to provide your policy number in addition to as many details as possible. Have information handy about your vehicle and any other vehicles that may have been involved in the collision (make, model, licence plate number). If possible, take photographs of the accident scene and damage to support your claim.
How Can You Save on Auto Insurance?
Even though auto insurance coverage is crucial to your protection in the long run, paying for it can still be a financial burden. Fortunately, there are several possible ways to lower the cost of your insurance premium:
- Increase your deductible. Though this will increase your costs in the event that you need to use your insurance, it will lower your costs at the time of purchase.
- Find out what discounts are available. Students, good drivers, and multiple policyholders (among others) may all be eligible for savings on their car insurance premiums.
- Bundle your insurance. Many insurance providers, including Nation North, offer discounts if you buy multiple policies or types of insurance through them (e.g., home insurance, car insurance, and travel insurance).
- Take a driver’s education course. Demonstrating dedication to improving your safety on the road can result in savings.
- Shop around. Because auto insurance coverage is private in the Northwest Territories, it makes sense to compare quotes from multiple companies. Nation North can help.
Why Choose Nation North?
Nation North leads the pack when it comes to auto insurance coverage across Canada’s north. Our experience in the Yukon, Northwest Territories, and Nunavut gives us the depth of knowledge to truly understand the conditions that set our northern clients apart and how to provide the services they need and deserve.
At Nation North, our commitment to you is that we’ll find you the best coverage at the best price, no matter what. Our Yellowknife brokers are friendly and ready to advocate for you, dedicated to facilitating your insurance needs and handling your claims with professionalism.
When you choose Nation North, you choose excellence. Here are some of the things that set us apart:
- We partner with the top insurance companies in Canada to provide you with numerous coverage options.
- Our brokers speak multiple languages and are available for extended hours, including weekends.
- We work for you and consistently advocate on your behalf.
- We are conveniently available through multiple channels—in-person, phone, online portal or app, social media, and email.
- We believe in giving back. A percentage of all premiums is donated to northern-based Human Societies and other charities.