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Your roadmap to car insurance that's right for you

Car Insurance in Prince Edward Island

On top of being a legal requirement, getting the right car insurance protects you and your car in case of any emergencies. So with car insurance through Johnson, we’ll always be by your side from the Cavendish beaches, the Confederation Bridge and beyond.

It all starts with you

Where you live helps determine the insurance you need.

These are the standard car insurance coverages required by law in Prince Edward Island:

  • Liability

    We’ll protect you if you’re involved in an accident where you’re deemed liable. This includes coverage for damages made to

    another person or vehicle.

  • Uninsured Automobile

    We’ll provide coverage for injury or death caused by an unidentified or uninsured driver.

  • Accident Benefits

    You’ll receive benefits if you’re injured in an accident, no matter who caused it. This includes coverage for income replacement, medical

    expenses, benefits for non-earners, and more.

  • Direct Compensation - Property Damage

    This provides coverage for damage to your vehicle if another person was fully or partly at fault for the accident. Even though someone else

    causes the damage, you collect directly from your insurer.

Insurance that goes the extra kilometre

Choose physical damage coverage.

Comprehensive Coverage

This covers against fire, theft, vandalism, falling objects, windshield damage and other types of damage, not related to a collision.

Collision Coverage

This pays for damage caused by collision with another vehicle or object, or if your car rolls over.

All Perils Coverage

This covers your vehicle by combining Comprehensive and Collision coverages—and best yet, you’ll only pay one deductible.

Go the distance with these add-ons

Loss of Use

If your vehicle is getting repaired due to damage covered under your policy, we’ll get you a replacement or reimburse you for reasonable transportation costs.

Rental Vehicle

This covers damage to vehicles you drive, but don’t own—like a rental car. In some cases, you’ll also get access to other standard coverages.

Depreciation Waiver

A new car's value depreciates quickly. This cover adds value back to your vehicle in the event of a claim.*

Roadside Assistance

Popped tire? Locked out? Need a tow? Give us a call and we’ll get you help.

Enjoy more without paying more

Get these benefits with your car insurance, regardless of the coverages you choose.

24/7 Claims

Whenever you need us, we’ll be here to help. All day, every day.

First Accident Forgiveness

Available to eligible drivers because there’s a first time for everything, even accidents. With first accident forgiveness, your driving record at Johnson won’t change as a result.

What affects your rates

Here’s the insider knowledge on what we look for when determining your premiums.

Your vehicle

We look at your car’s make, model, cost of parts, and claims history to see how likely it is to be involved in an accident or stolen.

Where you live

With more people and vehicles on the road, living in a larger urban area could increase the likelihood of an accident.

How much you drive

Do you commute or drive to different locations for work? Or just now and then for convenience? How often you’re behind the wheel could affect your rates.


Your experience on the road and any previous driving accidents or convictions could affect your rates.

Optional coverage

Any optional coverages you select will affect your rates. We’re happy to work with you to find the coverages that suit your needs best.

Your deductible

The higher the deductibles you choose, the lower your insurance rates are. However, higher deductibles mean you pay more upfront if an accident happens, so it’s important to find the balance that’s right for you.

The changing world of insurance

Beyond your circumstances, there are external factors that affect insurance rates for all Canadians; like the rising number of claims. In general, claims are becoming more frequent and more expensive due to:

  • The rise of extreme weather events and weather-related accidents
  • Lower interest rates making cars more affordable—more cars on the road can lead to more collisions
  • Increased instances of distracted driving, which can also cause collisions
  • Vehicle technology advances increasing the cost of repair and part replacement

Learn more about what affects your car insurance rates on The BlogHouse.

Ready to get a car insurance quote in PEI?

We’ll make it easy. Get your online car insurance quote in just a few minutes.


More than just insurance

We know that our coverage is just the beginning. We'll help answer your questions and give you the tips and tricks you need before getting in the driver's seat.

Insurance 101: The PEI licensing program

There are 3 stages in the PEI licensing program:1

Stage 1:

This is the Class 7 learner’s permit, which will allow an individual to drive under supervision. In order to enter Stage 1, the driver must be at least 16 years of age, pass a written or oral test about rules of the road, signage and safe driving, and complete a vision exam

Stage 2:

This is the Class 5 driver’s licence. The driver will be able to drive alone with certain restrictions, including an identifying decal that must be displayed in the windshield. To enter Stage 2, the driver must have had a Stage 1 licence for at least 365 days, or 265 days if enrolled in a certified driver’s training program, then they must pass a road test. Stage 2 lasts 365 days.

Stage 3:

Stage 3 lasts for another 365 days, during which time the driver will have fewer restrictions but will still be required to display the identifying decal in their windshield.


Have questions? We’re here to answer them

Am I covered when I drive someone else’s car?

Before getting behind someone else’s wheel, you need to know that your insurance does not necessarily follow you as a driver.

When driving someone else’s car, you would be covered under their insurance policy while driving their vehicle, as long as you:

  • Have a valid Canadian driver’s licence. Not from Canada? Travellers from outside Canada can check with the regulatory body of the province they will be driving in.
  • Are using the vehicle with the owner’s permission.
  • Haven’t committed a crime under Canada’s Criminal Code while operating your car.
  • Don’t use the vehicle for one of the uses not allowed in the vehicle owner’s policy (for example, no racing).
  • Are not specifically excluded from driving their vehicle.

If you have an accident while driving someone else’s car, you will need to present proof of insurance. You should make sure that you have this before borrowing the vehicle. If the car's owner doesn't have insurance, there may still be limited coverage under your own policy to protect you, however, not all of your usual coverages are provided. Also, keep in mind that your coverage won’t apply when driving a car owned by someone else in your household.

What does Specified Perils coverage provide me?

This covers loss or damage of your vehicle. It often goes hand in hand with Collision coverage as an alternate to comprehensive cover but it can be purchased separately.

Specified perils covers the cost of damage from:

  • Fire
  • Theft or attempted theft
  • Lightning
  • Windstorm
  • Hail
  • Rising water
  • Earthquake
  • Explosion
  • Riot or civil commotion
  • Falling or forced landing of an aircraft (or its parts)
  • Damage during transport on land or water (e.g. sinking of a ship, derailment of a train, burning or collision of a truck carrying the vehicle)

Glass breakage and vandalism aren't covered. Comprehensive coverage helps in those cases.

This coverage is optional in most provinces, but if you finance or lease a vehicle, the financial institution may not permit Specified Perils and may insist that Comprehensive cover is required. You should check with your financial institution to determine what is acceptable to them.

Will I get a rental car after I’m in an accident?

Only if you have added this optional coverage to your policy.

You may be eligible for a rental car if you have Loss of Use coverage or Direct Compensation Property Damage coverage.

What are the penalties if I don't have auto insurance?

It is illegal not to have insurance on a vehicle you're using on public roads in Canada. The penalty is usually a fine, but this varies from province to province.

As well as being illegal, not having insurance is a huge risk to your financial security and your future. You must pay for damages for which you are legally responsible. Without insurance, you could have to pay personally for losses and injuries - to yourself, your passengers, other drivers and their passengers, as well as pedestrians and cyclists. It could mean millions of dollars in costs. Not only could you lose your home and assets, you may also lose your future earnings.

When you buy car insurance, you get a Canada Inter-Provincial Motor Vehicle Liability Card (your insurance "pink card"). It is honoured as proof of insurance anywhere in Canada. You should keep this with you at all times and produce it when a police officer requests it.

Need more information about COVID-19 and your insurance?

We want you to know that we’re still here to support you!

Read more about our COVID-19 relief efforts and get answers to your most common questions through our COVID-19 page.

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Johnson Insurance is a trade name of Johnson Inc. (“JI”), a licensed insurance intermediary, and operates as Johnson Insurance Services in British Columbia and as Johnson Inc. in Manitoba. Outside of Quebec, home and car policies underwritten, and claims handled by Unifund Assurance Company (“UAC”). Described offers are applicable only to policies underwritten by UAC. Car insurance not available in BC, SK or MB. Home and car insurance not available in NU. JI and UAC share common ownership. Eligibility requirements, limitations, exclusions or additional costs may apply, and/or may vary by province or territory.

Visit Johnson Insurance - Quebec for plans available in QC.

*Waiver of Depreciation is only applicable to select vehicles based on qualifying risks.

**Bundled savings applied to home insurance policies where both home and auto policies are underwritten by Unifund.