Yes, car insurance is mandatory in Newfoundland and Labrador, as it is in all provinces and territories in Canada.
All drivers are required to have a minimum amount of liability coverage in case they cause an accident that injures someone or damages someone’s property. In Newfoundland and Labrador, the mandatory minimum liability coverage by law is $200,000 – however, you may require an increased limit if your vehicle is leased or financed.
Especially in today’s world, we recommend always carrying an increased liability limit. In the event that your car accident goes to court and results in damages more than $200,000 – you will be responsible for paying the additional damages; and we all know that $200,000 doesn’t go as far as it used to!