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
These are the standard car insurance coverages required by law in Prince Edward Island:
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.
We’ll provide coverage for injury or death caused by an unidentified or uninsured driver.
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.
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.
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.
A new car's value depreciates quickly. This cover adds value back to your vehicle in the event of a claim.*
Popped tire? Locked out? Need a tow? Give us a call and we’ll get you help.
How to save
There are many ways to save on car insurance in PEI. No coupons needed.
Rewarding safe drivers
You could get a discount if you haven't had any traffic violations within the last 3 years.
Group members can save even more
If you belong to an eligible group, it could offer group rates. These groups may include employees of the same company, members of a union, or members of other profit and non-profit associations.
Combine and save
Insure both your car and home through Johnson for additional discounts.**
The more you insure, the more you save
Insure more than one vehicle for extra savings.
We’ll find ways to lower your premium
If your child is studying away from home without regular access to your vehicle, list them as an occasional driver on your policy. They’ll still be insured, but you could save on your rates since they drive less.
Your driving history counts
You could get a discount for being an insured and accident-free principal driver for 3+ years.
Enjoy more without paying more
Get these benefits with your car insurance, regardless of the coverages you choose.
Whenever you need us, we’ll be here to help. All day, every day.
First Accident Forgiveness
There’s a first time for everything, even accidents. So, when your first accident happens, your premium won’t increase as a result.
You’ll earn 1 AIR MILES® reward mile for every $20 in premium paid, including taxes.±
What affects your rates
Here’s the insider knowledge on what we look for when determining your premiums.
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.
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.
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.
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
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
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 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
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.
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:
- Theft or attempted theft
- Rising water
- 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.
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.
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.
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Johnson Insurance is a tradename of Johnson Inc. (“Johnson”), a licensed insurance intermediary, and operates as Johnson Insurance Services in BC and Johnson Inc. in MB. Car insurance not available in BC, SK or MB. Home and car insurance not available in NU. Home and car policies primarily underwritten, and claims handled, by Royal & Sun Alliance Insurance Company of Canada (“RSA”) in Quebec and primarily underwritten, and claims handled, by Unifund Assurance Company (“Unifund”) in the rest of Canada. Described coverage and benefits applicable only to policies underwritten by Unifund or RSA. Johnson, RSA and Unifund share common ownership. Eligibility requirements, limitations, exclusions or additional costs may apply, and/or may vary by province or territory.
±AIR MILES® Reward Miles awarded only on regular home and auto insurance policies underwritten by Unifund or RSA (in Quebec). At the time the premium is paid, one (1) Mile is awarded for each $20 in premium (including taxes). Miles are not available in SK or MB. In Quebec, up to a maximum of 15 AIR MILES Reward Miles per month, per policy. ®TMTrademarks of AM Royalties Limited Partnership used under license by LoyaltyOne, Co. and Johnson (for Unifund), and in Quebec Roins Financial Services Limited. READ MORE
*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.