In NB, what should I know about insurance requirements for car loans?

In New Brunswick, when securing a car loan, lenders will invariably require you to carry two primary types of auto insurance: mandatory third-party liability and, crucially for financed vehicles, comprehensive and collision coverage. While NB's private insurance market dictates minimum legal liability requirements for all drivers, the comprehensive and collision components are specifically mandated by lenders to protect their financial interest in the vehicle, which serves as collateral for your loan. This means that in the event of an accident, theft, or damage, the vehicle's value is protected, ensuring the loan can be repaid.

Looking ahead to 2025, consumers in NB should anticipate that insurance premiums may continue to be influenced by broader market conditions, including inflation, rising repair costs due to supply chain challenges for parts, and increasing claim severity, potentially impacting your overall monthly vehicle budget. It's vital to understand that maintaining adequate insurance is a non-negotiable condition of your loan agreement; failure to do so can lead to default, potential repossession, and significant financial penalties. Always ensure you have proof of valid coverage before taking possession of your financed vehicle, and consider how your chosen deductible will affect both your premium and your out-of-pocket costs in case of a claim.