If you own a motor vehicle in New Brunswick, you are required by law to have insurance. All motor vehicle insurance in New Brunswick has certain mandatory coverage and includes four standard policies: Sections A, B, C, and D. If your vehicle is insured in New Brunswick, your insurance will include these four policies. There is also additional insurance coverage that you can purchase to add onto the standard policies.
The Section A policy provides liability coverage for damages for injuries or property damage that arise from the actions of a driver of the insured vehicle. If you are injured as the result of a motor vehicle accident, and the motor vehicle accident is another driver’s fault, you may be entitled to compensation under the other driver’s Section A policy. Alternatively, if you cause a car accident, and someone brings a personal injury claim against you, your Section A policy will cover the damages, up to the policy limits. The mandatory minimum policy limit for Section A/liability coverage in New Brunswick is $200,000. Many insurers offer policies with limits of five hundred thousand, one million, or two million dollars. If the claim exceeds the policy limit, the insured then becomes responsible for any amount over the policy limit. If you own an automobile, it is important you understand what the policy limits are for your Section A coverage. Purchasing a policy with higher policy limits provides better protection if you are at-fault for an accident. In addition to covering claims for personal injury damages, the Section A policy also provides indemnification for liability claims. This means, the insurance policy will cover the cost of hiring a lawyer and defending against any claims brought against you by an injured party.
Compensation under a Section A claim may include damages for out-of-pocket expenses, past and future loss of income, general damages, loss of valuable services, and future cost of care. Please see our previous blog on types of compensation you may be entitled to after a car accident for more detail about these types of compensation.
The Section B policy provides no-fault accident bodily injury benefits for drivers or passengers of an insured vehicle. No-fault means that if you are injured as a result of a car accident, you are entitled to these benefits, regardless of who caused the accident. Coverage under this policy includes the cost of: medication, treatment, aides prescribed by your doctor, and mileage to and from medical appointments. These benefits are available for up to four years from the date of the accident, or up to a maximum of $50,000, whichever comes first. The Section B policy may also cover wage loss benefits up to a maximum of $250 per week. If you meet the criteria, these wage loss benefits may be available for life. The Section B policy also covers some death benefits for fatal accidents.
The Section C policy covers property damage to the insured vehicle. Depending on the amount of damage to the vehicle, the insurer can choose to pay for the repairs to the vehicle or pay for the value of the vehicle. Some policies have a deductible for the coverage under this policy.
The Section D policy provides coverage if you are involved in a car accident and the other driver is at fault, but does not carry motor vehicle insurance or is an unidentified vehicle.
Additional optional coverage
In addition to these mandatory policies of insurance, there are additional riders or add-ons that may be added onto the standard form policies for additional coverage.
How to determine what coverage is available to you after a motor vehicle accident
If you have been in a car accident accident, it is important that you call the insurer of your vehicle to report the accident. The insurer should assign different adjustors for the Section A, Section B, Section C, or Section D policy claims, where applicable. If someone else is at fault for the accident, or your insurer is denying you benefits, it is important that you call a personal injury lawyer as soon as possible. A personal injury lawyer can help you navigate the different policy claims. A personal injury lawyer can also discuss with you what compensation you may be entitled to, and explain your legal rights.
The full text of the standard automobile polices can be found here: https://fcnb.ca/sites/default/files/2020-05/Standard%20Owners%20Policy.pdf