Whether you are buying car insurance in Quebec for the first time or looking for other options for car insurance, the FAQs below can guide you in your shopping.
What is the standard price for car insurance in Quebec?
Based on data from the Insurance Bureau of Canada, car insurance premiums cost $717 annually r $59.75 a month, on average. Car owners in urban areas like Montreal get higher premiums than in rural areas.
What is no-fault insurance system and how does it work?
Quebec has a unique auto insurance system wherein vehicular accidents are covered for physical injuries regardless of who is responsible for the accident. The SAAQ provides compensation to the victims. The driver responsible cannot be sued for compensation.
What is the mandatory auto insurance in Quebec?
Under the law, drivers need public and private auto insurance in Quebec. The public insurance is provided by the SAAQ for compensation for injuries including loss of compensation, permanent impairment, personal home care, medicines, and death benefits.
On top of this, drivers in Quebec must have a minimum of $50,000 in civil liability from a private insurance company. This will pay for damage to other vehicles, your vehicle (if you are not responsible for the accident), and property damage to third parties.
The law requires a minimum of $50,000 but many Quebec drivers purchase from $1 Million and above for coverage. This is often referred to as Part A of auto insurance.
What optional insurance is available in Quebec for added protection?
Drivers are not obligated to purchase optional insurance for repairs to their own vehicles. It pays for the following:
- Repairs to your car due to a collision due to your fault
- Damage to your vehicle due to hail, vandalism, or theft
- Other perils as indicated in the policy
This is often referred to as Part B of auto insurance.
What is the recommended amount for civil liability coverage?
The mandatory requirement is $50,000 in civil liability but it is advisable to increase that amount for extra coverage. If you drive only in Quebec, $1 million in civil liability is deemed sufficient coverage. If you drive outside the province, you will need to consider material and personal injury. Damages for personal injury can be very high especially if you also drive in the United States. You may wish to consider buying up to $2 Million in civil liability.
Who pays for damage in a multiple-car collision?
Under the Direct Compensation Agreement (DCA) adopted by the groupement des assureurs automobiles (GAA), in accidents involving at least 2 vehicles, the damage to your car is compensated if you have Part B insurance. If you are not at fault for the accident, the damage to your car is paid for the the responsible driver’s civil liability insurance coverage.
What is the ideal amount for the deductible for car insurance?
It is common for drivers to have a $500 deductible especially for cheaper cars. Statistics show that a deductible amount from $500 to $1,000 will not have a significant effect on the premium. If you drive a luxury car model, you may want to increase the deductible.
Remember that your deductible is the amount you pay whenever you claim from your insurer. While choosing a higher deductible can lower your premium, you must also consider if you can pay the deductible amount without negatively affecting your finances.
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