The Provincial Government, in partnership with the Insurance Bureau of Canada, has launched a digital Insurance Validation Program to improve how the province’s Motor Registration Division determines whether a vehicle is covered by mandatory insurance.
This program automates verification with the Insurance Bureau of Canada that a vehicle identification number (VIN) matches the information on file with Motor Registration, providing a secure, effective and convenient digital solution to confirm that motorists have mandatory auto insurance coverage when registered owners annually renew their vehicle registration.
The program will apply to all passenger-plated, privately-owned or leased passenger vehicles with a model year of 1983 and later, and Motor Registration will now be able to check registered vehicles for mandatory insurance coverage on a monthly basis.
Funding for this initiative was provided by Transport Canada through the Enhanced Road Safety Transfer Payment Program (ERSTPP).
The 2019 Automobile Insurance Review found that Newfoundland and Labrador had the highest costs and claim frequency for uninsured drivers of any of the Atlantic Provinces.
The Insurance Validation Program is one of a number of measures government has taken to address this problem, including:
- Requiring insurers to report a cancellation of an auto insurance policy to the Registrar of Motor Vehicles;
- Increasing fines for uninsured drivers; and,
- Prohibiting uninsured motorists from accessing the Uninsured Automobile Fund.
As per the province’s Highway Traffic Act, penalties for driving without valid insurance include cancellation of registration, vehicle impoundment, fines of up to $4,000 for a first offence and earning six demerit points.
Quotes
“It is mandatory to carry auto insurance in our province. When drivers do not carry auto insurance, the costs can be substantial and affect everyone’s insurance premiums. This program identifies and directly reduces the number of uninsured vehicles on our roadways.”
Honourable Sarah Stoodley
Minister of Digital Government and Service NL
“The property and casualty insurance industry is happy to partner with Newfoundland and Labrador to provide real-time confirmation of mandatory insurance coverage. This system has been working effectively in Ontario for over a decade, and will help ensure all Newfoundland and Labrador road users are protected in the event of a collision.”
Amanda Dean
Vice-President, Atlantic
Insurance Bureau of Canada
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Learn more
Automobile Insurance Changes 2020
2019 Automobile Insurance Review – Report to Government
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Media contacts
Krista Dalton
Service NL
709-729-4748
kristadalton@gov.nl.ca
Brett Weltman
Insurance Bureau of Canada
416-362-2031
BWeltman@ibc.ca