How Does Car Insurance Work in Quebec?

How does car insurance in Quebec work, and how is it different from the rest of Canada?

Unlike the rest of Canada, Quebec residents are insured by the Société de l’assurance automobile du Québec (SAAQ). All Quebecers are covered by this insurance, whether they have a driver’s license or not. This means that anyone residing in Quebec is entitled to compensation if they are injured in an accident involving a road vehicle.

Both the person responsible for the accident and the person involved in the collision are covered for bodily injury. For example, if you’re driving a road vehicle and hit a cyclist or pedestrian, everyone involved in the incident will be compensated by the SAAQ (whether you’re at fault or not). What’s more, you won’t be able to sue for any bodily injury caused in the incident.

This public insurance covers medical expenses, but does not cover damage to the vehicles involved in the accident. What’s more, not all medical expenses are covered. That’s why it’s mandatory to take out private car insurance in addition to public insurance.

Public and Private Car Insurance in Quebec

In Quebec, there are two different insurance plans:

• Public insurance: offered by the Société de l’assurance automobile du Québec (SAAQ) for all Quebec residents.
• Private insurance: must be taken out with an insurance company and comprises two parts: Chapter A (mandatory) and Chapter B (optional).

Both public and private plans are needed to cover all medical expenses, and more.

SAAQ Public Insurance for Quebec Residents

Quebec residents are automatically insured by the SAAQ. This insurance coverage compensates you for injuries sustained in an accident involving a road vehicle. Under this system, those involved in an accident cannot sue each other in court.

Private Car Insurance from an Insurance Company

Not all medical expenses are covered by SAAQ public insurance. You must therefore take out private insurance to cover any expenses not covered (Chapter A). This private car insurance can also cover the cost of damage to your vehicle in the event of an at-fault accident, and much more (Chapter B).

Car Insurance in Quebec – Explanation of Private Insurance Coverage

As mentioned above, you must take out private car insurance with an insurance company. This private insurance comprises two parts: Chapter A (mandatory) and Chapter B (optional).

• Chapter A: Mandatory liability insurance (Chapter A) covers bodily injury to another person (not covered by the SAAQ) and property damage caused by your vehicle.
• Chapter B: Optional insurance (Chapter B) covers damage to your vehicle if you are at fault, as well as theft and vandalism.

Here’s more information on Chapters A and B.

Quebec Car Insurance – Chapter A: Mandatory Liability Insurance

In Quebec, you are required by law to carry a minimum of $50,000 in liability insurance. This is known as Chapter A of the “Formule de Police du Québec”, often referred to as “one way insurance” in Quebec.

It covers bodily injury caused to another person, which is not covered by the SAAQ, as well as property damage caused by your vehicle. What’s more, damage to your vehicle in a collision will be covered if you are not at fault for the accident.

Although the minimum amount of liability insurance is $50,000, it can be as much as $1M or $2M. This is generally recommended by insurance companies.

If you don’t have Chapter A insurance, you could be fined and have your driver’s license suspended.

Quebec Car Insurance – Chapter B: Optional Private Insurance

Chapter B insurance coverage is optional. By law, you don’t have to take out optional insurance to drive your vehicle in Quebec. However, it is desirable in many situations, such as when buying a new car. This protection is often referred to as “two way insurance” in Quebec.

With Chapter B, your insurance coverage will depend on the types of optional protection you have chosen, including :

• Collision insurance
• Accidents without collision or upset (e.g. fire, theft, vandalism, hail, flood, etc.)
• Comprehensive insurance
• Specific risks (list of risks specified in your insurance policy)
• Endorsements (e.g. replacement value, roadside assistance, etc.)

For example, damage caused to your vehicle in the event of an accident (whether at fault or not) will be covered by collision insurance and comprehensive insurance.

Since property damage is covered in addition to medical expenses, it’s all the more important to take out liability insurance well in excess of the minimum amount (not the law) of $50,000. In fact, insurance companies generally recommend coverage of one or two million dollars.

Insurers can also offer you additional protection, known as “endorsements”. For example: replacement value, roadside assistance, vehicle rental insurance, excess waiver, personal insurance, etc. Of course, you’ll have to pay additional fees to obtain these protections.

Although this optional insurance is more expensive, you get a much more complete car insurance.

How to Get a Better Price for Your Car Insurance Premium?

That said, do you know how to reduce your car insurance premiums? Here are some of our best tips for saving money…

Increase Your Deductible Amount

Increasing your insurance deductible can reduce your car insurance premiums. Contact your current insurance company to find out about the different deductible options available to you… and the savings on your insurance premiums.

Bundle Your Home and Car Insurance

To reduce your insurance premiums, you can bundle your car insurance with your home insurance on the same insurance policy. With our partner ClicAssure, you can save up to an additional 15% when you combine your car and home insurance.

Get Several Car Insurance Quotes Online

Get several car insurance quotes online and compare them before making a decision. Be sure to compare quotes for the same type of car insurance and check conditions and exclusions, if any.

Negotiating with Your Car Insurance Company

Contact your insurance company and negotiate with the insurance agent. Demonstrate your exemplary driving record (and other relevant information) and mention any cheaper car insurance quotes you’ve obtained (see previous step).

Contact a Car Insurance Broker

To reduce the number of quotes, contact an insurance broker like ClicAssure. They have access to several insurers and can present you with the best offer. What’s more, they often have access to exclusive offers and discounts. Request quotes that combine your car and home insurance on the same insurance policy.

Bottom Line

In short, car insurance in Quebec works differently from the rest of Canada. First, Quebec residents are insured by the Société de l’assurance automobile du Québec (SAAQ), whether or not they have a driver’s license. However, it does not cover all medical expenses. You must therefore take out private insurance with an insurance company. Private insurance comprises two parts: Chapter A (mandatory) and Chapter B (optional).

To compare insurance quotes, feel free to use our online car insurance comparison tool to find the one that best suits your needs.

Frequently Asked Questions About Car Insurance in Quebec