Car Insurance In  Northwest 

10 Best Ways To Get An Affordable Car Insurance In  Northwest 

Northwest Territories is a fairly affordable Canadian territory in auto insurance. According to the Insurance Bureau of Canada 2022 report, the territory has an average auto insurance rate of $998, making it the most expensive Canadian territory in auto insurance.

The rates offered by Northwest Territories auto insurance companies differ. In some cases, the difference in auto insurance rate even for the same car and driver could be hundreds or thousands of dollars.

The good news is that you have the option to shop around and compare policy options and compare policy options before you choose suitable coverage.

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Northwest Territories has a plethora of insurance companies offering auto insurance coverage to residents. To get the most affordable coverage, it is customary to compare quotes from at least three companies.

How auto Insurance In The Northwest Territories Works

In the Northwest Territories (NWT), car insurance is mandatory and is provided by private insurance companies, which can be purchased either directly or through a broker.

The Office of the Superintendent of Insurance supervises, regulates, and enforces auto insurance across the territory.

Northwest Territories operate under a no-fault insurance system, where it doesn’t mean you can’t be found at fault, but that you only ever deal with your insurance provider to resolve an insurance claim. 

Northwest Territories car insurance is available with both mandatory coverage and optional coverages. 

Mandatory auto insurance coverage includes: 

Third-party liability: Protects against damage to others and their property caused by you while driving.  It’s mandatory across Canada. Minimum coverage for third-party liability insurance is $200,000.  In Quebec, it’s $50,000. 

OPTION: You can increase your third-party liability insurance to $500,000, $1 million, or $2 million. Most drivers choose $1 million as a default. 

Accident benefits: Covers your medical benefits if you’re injured in a crash, whether you’re at fault or not. It extends to pedestrians and cyclists, too. It pays for medical costs outside of provincial coverage, as well as additional recovery costs, such as rehab, income replacement, and attendant care, if needed. Worst case scenario, it also covers the cost of funeral expenses. 

Uninsured automobile insurance: Uninsured motorist coverage protects against injuries you and your family members sustain in a crash caused by an uninsured motorist. It can also cover your vehicle damages if the uninsured driver can be misidentified. If not, you’ll need to rely on collision or comprehensive to foot the repair bills.

Optional Northwest Territories auto insurance coverage includes:

Collision insurance: Protects against damages you receive in a collision in Northwest Territories and across North America where you’re partially or wholly at fault. This insurance covers you if your car is damaged in a crash – whether it’s into another car or you slam into a stationary object like a guardrail or tree. 

Comprehensive car insurance:  Protects against any losses you may suffer from events while your car is parked, whether on a street, on a driveway, or in a garage. Such losses could include theft, vandalism or damage from an attempted burglary, or environmental damage from floods, fallen trees hail, etc. 

Specified peris: Covers any financial losses from specific risks (i.e. perils) that you specifically name in your policy. They can include:

Theft

Fire

Damage from hail, lightning, wind, or flooding

Earthquakes

Explosions

Riots

Damage from overhead aircraft (parts falling from the sky)

Any damage sustained during relocation (e.g. tow truck)

It’s a cheaper option than comprehensive to name your perils explicitly but could leave you exposed to risks you don’t name.

All peris: Combines both collision and comprehensive, and adds additional protection if a member of your household or an employee steals your vehicle.

Auto insurance companies in Northwest Territories consider a slew of factors when calculating and determining your auto insurance rate. The factors or variables considered by auto insurers are shortly outlined:

The type of vehicle you use.

Your driving record.

Your gender and age.

Your driving experience

The location and use of your vehicle.

The amount of coverage you selected.

How to get cheap car insurance in Northwest Territories

Shop and compare

Research which company provides cheap car insurance in Northwest Territories, and also the best value for you and your vehicle. Rates may change up to four times a year, but lucky for you comparing Northwest Territories car insurance with us is free.

Stay with your current insurer

Some Northwest Territories auto insurance companies will give loyalty discounts to drivers who remain active with them for years. Especially if they add family members or multiple vehicles to their policy.

Bundle your policies

If you use the same insurance company for both your home and auto insurance needs, your insurer will often thank you with a dip in premiums.

Get multi-car discount

If you have multiple drivers and vehicles in the same household putting them all on one policy can save you money.

Increase your deductible

Your deductible is the portion you pay when settling a claim before your insurer will pay the rest. If you’re willing to double your deductible, it could save you money.

Ask about discounts

If you’re a member of a large corporation, union, or a school alumnus, it could help you get cheaper Northwest Territories car insurance

Pay premiums annually, instead of monthly

Paying monthly adds administrative costs to your insurer, so if you’re able to pay in full annually you can lower your premiums.

Maintain a good driving record

If you’re a safe driver, obey the rules of the road and drive according to road conditions you can reduce your chances of an accident. Car crashes stay on your insurance record for up to ten years and can result in higher premiums.

Install winter tires

You can save up to 5% simply by adding winter tires to your car. Unless you’re in Quebec, where it’s mandatory.

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