TL;DR
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How car insurance works in Quebec
Car insurance in Canada works differently across provinces. In some provinces, insurance is sold through private insurers. In others, it’s available through government-owned crown corporations. Quebec has a unique hybrid insurance system that brings together both government and private insurers. We’ve got the lowdown on how Quebec car insurance works and how you’re covered – whether you’re a Quebec resident or just visiting. |
What's on this page?
Why is car insurance different in Quebec?
Quebec’s “dual” insurance system is different from any other province. Working together, both government and private insurers provide separate required coverage for drivers in Quebec. Public car insurance is offered by the government-run crown corporation, Société de l’assurance automobile du Québec (SAAQ). |
How does car insurance work in Quebec?
So, how does Quebec car insurance work? In Quebec’s dual system, you need coverage from both the public (SAAQ) and a private insurer to be fully protected. The SAAQ provides mandatory coverage for bodily injury, while private companies offer mandatory civil liability coverage for property damage, plus a range of optional coverages for your vehicle. We'll break down how each part works in the next sections.
Public car insurance in Quebec
The public part of the Quebec car insurance system is managed by the SAAQ. All drivers in Quebec contribute to this plan through their driver's licence fees and vehicle registration. The no-fault insurance plan covers bodily injuries from auto accidents.
What does the SAAQ cover in Quebec?
A unique benefit of the SAAQ is its worldwide coverage. If you’re a Quebec resident and have a car accident anywhere in the world, the SAAQ will provide the same bodily injury benefits as if the accident happened in Quebec. |
Private car insurance in Quebec
Private insurers provide the other essential half of your coverage. This is where you’ll get protection for your car’s property damage, as well as the option to add more coverage for your vehicle.
What does private car insurance cover in Quebec?
- Civil liability. This covers financial costs for damage to someone else's property (like their car or home) that you cause in an accident. Bodily injury to others is also covered in situations where the SAAQ doesn't apply.
- Private insurers also offer optional coverages to protect your vehicle from damage.
Is car insurance mandatory in Quebec?
Yes, car insurance is mandatory in Quebec. You are legally required to have at least $50,000 in third-party civil liability coverage from a private insurer. However, most drivers choose to increase this limit to $1 million or $2 million for greater protection, since accident-related costs can add up quickly.
Optional car insurance coverage
Aside from mandatory civil liability insurance, you can get optional coverages from a private insurer for more protection, including:
- All perils. This combines collision and comprehensive coverage.
- Collision or upset. This covers damage to your vehicle from a collision with another object or from rolling over.
- Comprehensive. This protects your vehicle from non-collision events like theft, vandalism, fire or hail.
- Specified perils. This covers damage from a specific list of risks, like theft.
How does no-fault auto insurance work in Quebec?
Quebec’s no-fault system means that if you’re in an accident, you’ll always deal with your own insurance providers, regardless of who caused it. For bodily injuries, you’re covered by the public plan (the SAAQ), which provides compensation without the need to establish fault in court. This means you give up the right to sue another driver for your injuries, but in return, you get access to benefits much faster. For damage to your vehicle, you’ll make a claim with your own private insurer, who will handle the costs based on your coverage and the details of the accident.
How do car insurance claims work in Quebec?
For property damage, Quebec car insurance claims use the Direct Compensation Agreement (DCA). This means you always make a car insurance claim through your own private insurer for damage to your vehicle, regardless of who is at fault. Your insurer will use the DCA’s "Driver's Fault Chart” to determine the amount that each driver was at fault, which informs the claim payout. If you are not at fault, your civil liability coverage pays for the repairs. If you are at fault, your optional collision coverage would cover the damage, but you would have to pay your deductible. |
How much does car insurance cost in Quebec?
Quebec car insurance is known for being among the most affordable in Canada. The province’s hybrid system helps keep costs down for drivers. While prices vary based on your vehicle, driving record and other factors, the average price for auto insurance in Quebec is significantly lower than in provinces like Ontario or British Columbia. |
How are visitors covered for car accidents in Quebec?
Car insurance coverage differs for travellers in Quebec compared to other places in Canada. There are a couple of scenarios for visitors who get into an accident:
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Frequently asked questions (FAQs)
How does car insurance work in Quebec?
Quebec uses a hybrid insurance system that combines public and private plans. The government-run plan (SAAQ) provides mandatory coverage for bodily injuries sustained in an accident, while private insurers provide mandatory civil liability coverage for property damage.
What is the SAAQ and what does it cover?
The SAAQ (Société de l’assurance automobile du Québec) is a government corporation that manages the public auto insurance plan. It covers bodily injuries for all drivers, passengers and pedestrians involved in an accident, regardless of who’s at fault. It doesn’t cover damage to vehicles or property.
Is private car insurance mandatory in Quebec?
Yes. In addition to the public plan, you’re legally required to have a private insurance policy that includes at least $50,000 in third-party civil liability coverage. This covers damage you may cause to another person's property.
What is the difference between public (SAAQ) and private insurance in Quebec?
In short, the SAAQ handles injuries, while private insurers handle property damage. The SAAQ's public plan covers compensation for bodily harm, and private insurance covers damage to other people’s property. Private insurance also offers optional protections for your own vehicle against collisions, theft and other risks.
How does no-fault insurance work in Quebec?
The no-fault system means that after an accident, you always deal with your own insurance providers. For bodily injuries, you make a claim with the SAAQ. For damage to your vehicle, you make a claim with your private insurer, who will determine fault and compensation according to the Direct Compensation Agreement.
Is car insurance expensive in Quebec?
Quebec has some of the most affordable car insurance rates in Canada. The hybrid system, where the government covers costly bodily injury claims, helps keep the premiums for private insurance lower compared to other provinces.
I'm visiting Quebec. Am I covered if I get into a car accident?
Yes, visitors are covered, but the amount of coverage depends on the situation. If you’re injured in an accident while in a Quebec-registered vehicle, you’re entitled to full SAAQ benefits. If the vehicle isn't registered in Quebec, your SAAQ compensation is based on the percentage you're not at-fault for the accident.