New Brunswick Direct Compensation Agreement: What You Need to Know

If you live in New Brunswick and have been involved in a car accident, it`s important that you understand what the province`s Direct Compensation Agreement (DCA) is and how it can affect your insurance claim.

What is the Direct Compensation Agreement?

The Direct Compensation Agreement is a provision of New Brunswick`s no-fault insurance system. It requires insurance companies to compensate their own policyholders for damages sustained in a car accident, regardless of who was at fault. This means that if you were in an accident and were not at fault, you would still make a claim with your own insurance company and not the other driver`s.

How does it work?

Under the DCA, each driver`s insurance company is responsible for paying their own policyholder for damages sustained in a car accident. The amount of compensation is based on the level of coverage the driver has purchased. For example, if you have $100,000 in coverage and are found to be 50% at fault for an accident, your insurance company would pay you $50,000 for damages.

It`s important to note that the DCA only applies to property damage and personal injury claims. If you have any other type of claim, such as for lost wages, you would need to make a claim against the other driver`s insurance company.

How does this affect my insurance premiums?

Since the DCA requires each driver`s insurance company to pay for their own policyholder`s damages, regardless of fault, there is no need to assign blame for an accident. This means that your insurance premiums should not be affected by an accident that was not your fault.

However, if you are found to be at fault for an accident, your premiums may increase. The amount of the increase can vary based on a number of factors, such as the severity of the accident and your driving record.

In conclusion, the Direct Compensation Agreement is an important provision of New Brunswick`s no-fault insurance system. It ensures that each driver`s insurance company is responsible for compensating their own policyholder for damages sustained in a car accident, regardless of who was at fault. If you have been in an accident, it`s important to speak with your insurance company to understand how the DCA applies to your claim.