Prince Edward Island Knowledge Test — Instruction Permit Practice Question
Province progress 0 / 397
Accuracy —
Rules of the Road
PEI's auto insurance system is best described as:
Show Answer & Explanation
Correct Answer: B. Tort system with a minor-injury cap
Tort systems preserve the right to sue while caps prevent runaway claims for minor injuries.
Why the other answers are wrong
- A.Pure no-fault — insurer pays own driver regardless of causePure no-fault applies in Manitoba and Quebec, not PEI.
- C.Government-run monopoly insurerGovernment-run insurers are in BC (ICBC), MB (MPI), and SK (SGI) — PEI uses private insurers.
- D.Federal poolAuto insurance is provincial; federal pools do not exist for personal auto.
