Applying for car insurance
As mentioned earlier, the public plan protects all Quebecers in the event of injury or death due to a car accident. You contribute to this plan through your driver’s license and vehicle registration payments.
When you’re shopping for private car insurance in Quebec, you can make an informed choice by getting quotes from multiple providers to compare premiums, deductibles, and coverages. You can purchase car insurance online or in person. Insurance providers will ask you for information such as the make, model and year of your car and your driver’s licence number. If you have home insurance, see if your provider offers car insurance — you may receive a discount by bundling your home and car insurance.
You may have difficulty getting insurance if you’ve made several claims in the past few years, you’ve fallen behind in your payments, or you have a criminal record or driving convictions. If this is the case, you can reach out to the Insurance Information Centre for help. A process called “access to insurance” will find you the minimum coverage required by law. To qualify for assistance from the Insurance Information Centre, you must have been refused by at least 5 insurers. So, make sure to keep a record of your applications for insurance.
Renewing or cancelling your insurance
Every year, your policy will renew automatically under the same conditions. If anything changes on the policy, like a change in premium or coverage, you will receive a written notice from your insurance provider at least 30 days before your policy end date. The annual renewal is also good time to review your policy to ensure that you still have appropriate coverage.
You may cancel your policy at any time and for any reason (which you don’t have to disclose) by sending your insurance provider a written notice. Usually, if you cancel your policy prior to the renewal date, you’ll receive a refund on a short-rate basis — that means you’ll be refunded any unearned premiums minus a penalty.
The insurer can cancel your policy in the first 60 days by providing a written notice. The cancellation takes effect 15 days after you receive the notice. The insurer can only cancel your policy after the initial 60 days if you failed to pay your premium or material change in risk that the insurer cannot accommodate. Once again, the insurer must send you written notice and the policy will be cancelled 30 days after you receive the notice.
Claims and the Direct Compensation Agreement
It is good practice to file your claim within 24 hours of an accident, although by law you have up to three years to do so. Quebec auto insurance providers are bound by the Direct Compensation Agreement (DCA) when it comes to claims. Under the DCA, drivers involved in an accident are compensated for material damages by their own insurer, regardless of fault.
The DCA applies to collisions in Quebec between at least two vehicles, and in which the owners are identified. The DCA does not apply to collisions that occur in other provinces or countries. It also doesn’t apply to hit-and-runs (which are covered under the public plan), or accidents involving only one vehicle (like hitting a tree).
The DCA uses the Driver’s Fault Chart, which covers various possible accident scenarios and establishes each driver’s fault. Depending on the details of the collision, a driver may be found 0%, 50% or 100% responsible.
Under the DCA, each insurer is responsible for compensating the policyholder for the property damage suffered, regardless of fault. If the policyholder is at fault, they will be compensated provided they purchased collision coverage. The insured also pays a deductible in this case. If the policyholder is not at fault, they will be compensated even if the policy doesn’t cover collision and the insured will not have to pay a deductible.
Commonly asked questions
How much does car insurance cost in Quebec?
Car insurance in Quebec is generally cheaper than in the other provinces. According to Infoassurance.ca the average price of car insurance in Quebec was $855 in 2022. Premiums are higher in Montreal and other urban centres. One of the reasons for lower premiums in Quebec is the fact that drivers buy mandatory coverage from the provincial government, which allows it to subsidize rates.
If I’m visiting Quebec and get into an accident, am I covered?
Yes. If you are driving a Quebec-registered vehicle, you are eligible for SAAQ compensation. If you are driving a vehicle that is not registered in Quebec, you are eligible for the percentage of which you are not at fault for the accident. For example, if you were 75% responsible for the accident, you would be eligible for 25% of the claim.
Am I covered if I have a car accident overseas?
The SAAQ covers you anywhere in the world, regardless of whether you are responsible for the accident. However, if you are involved in a traffic accident outside of Québec, you could be subject to legal proceedings in the jurisdiction in which you are travelling. If you’re found liable for damages outside Quebec (or Canada), your civil liability coverage would respond. If you often drive outside the province, make sure your liability coverage is adequate (especially if you’ll be driving in the United States).
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About the expert: Daniel Mirkovic
A co-founder of Square One with 25 years of experience in the insurance industry, Daniel was previously vice president of the insurance and travel divisions at the British Columbia Automobile Association. Daniel has a bachelor of commerce and a Master of Business Administration (MBA) from the Sauder School of Business at the University of British Columbia. He holds a Canadian Accredited Insurance Broker (CAIB) designation and a general insurance license level 3 in BC, Alberta, Saskatchewan, Manitoba and Ontario.
