Can I Cancel My Car Insurance Anytime in Quebec?
With 23.6 million vehicles registered in Canada, auto insurance plays a crucial role in the daily lives of Quebec drivers-but understanding your rights and obligations isn’t always straightforward. Cancelling your car insurance policy in Quebec is possible at any time, yet there are important details and potential costs to consider.
Whether you’re switching insurers or comparing new quotes, knowing the process helps you avoid unexpected penalties. This guide covers everything you need to know about cancelling your policy mid-term, including how to notify your insurer, possible cancellation fees, refund calculations, and what to expect during the policy period.
Is It Possible to Cancel Auto Insurance Any Time in Quebec?
Yes, in Quebec, you can cancel your car insurance at any time by notifying your insurer, usually in writing or by phone. However, cancellation fees may apply if you cancel before your policy renewal date.
Your insurance will be officially canceled when your insurer receives your notice, and any overpaid premiums will be refunded after applicable fees. Always make sure you have other coverage in place before canceling, as owning a vehicle without insurance is illegal in Quebec.
Understanding the Auto Insurance Contract in Quebec
Auto insurance in Quebec is structured differently than in most other provinces. It combines public coverage from the Société de l’assurance automobile du Québec (SAAQ) with mandatory private insurance from licensed insurance companies. Understanding the full scope of your auto insurance contract is essential when considering cancellation or switching providers.
1. Public Insurance from the SAAQ (No-Fault Coverage)
All Quebec residents automatically receive public auto insurance coverage through the SAAQ. This plan covers bodily injury to drivers, passengers, pedestrians, and cyclists involved in car accidents—regardless of who is at fault. This no-fault plan means you cannot sue another party for bodily injury, nor can they sue you.
The cost of this coverage is included in your driver’s licence fees and vehicle registration fees, not in your auto insurance policy with a private insurer. If you're cancelling or switching policies, SAAQ coverage remains in place. However, it doesn’t include any damage to vehicles or property, which brings us to the role of private insurance.
2. Required Private Auto Insurance Coverage
In addition to public coverage, vehicle owners in Quebec are legally required to purchase private liability insurance. This coverage must be obtained from an authorized insurer or broker and is included in every car insurance contract. The legal minimum is $50,000.
This portion of your insurance covers:
Property damage you cause to others in Quebec
Bodily injury and property damage you cause outside of Quebec
Legal costs if you're sued in another province or country
3. Optional Private Auto Insurance Coverage
Beyond mandatory coverage, many drivers choose to add optional private insurance to their policy for additional protection. These options vary depending on the type of coverage and the insurer, and may include:
Collision Insurance: This section protects you for physical damage to your vehicle when you hit or are hit by an object or when the vehicle rolls over.
Comprehensive Insurance Except Collision or Upset: This section protects you for damage to your vehicle from damage other than collision or upset, such as broken glass, theft, fire, lightning, vandalism, and other perils.
Specified Perils Insurance: This section only protects you against the perils listed in the policy, such as hail, lightning, etc.
These additions increase your annual insurance premium, but they also reduce your financial risk in the event of an incident. If you change insurers or modify your current plan, reviewing these optional protections is essential to maintain adequate coverage.
Find the right private car insurance policy for you
Why do People Cancel Their Auto-Insurance Policy?
There are several legitimate reasons why drivers in Quebec may choose to cancel their auto insurance policy. Below are the most common scenarios, explained clearly to help you determine your next steps:
Selling or No Longer Owning the Vehicle: If you've sold your vehicle or permanently stopped driving, you're no longer required to maintain an auto insurance policy. Cancelling your policy ensures you’re not paying monthly payments or insurance premiums unnecessarily.
Moving Outside Quebec: Relocating to another province or country requires different insurance coverage. Since Quebec's system includes SAAQ and private coverage, you’ll need to cancel your current policy and secure new coverage through a local insurance provider.
Switching Insurance Company: You can cancel your current policy if you're transferring to a different insurance company or working with a new insurance broker like OVC Assurance. Just ensure your new policy term begins immediately after cancellation.
Finding Better Insurance Coverage: You may discover a current insurance provider offering better insurance quotes or more adequate insurance coverage. Cancelling for improved coverage or more affordable car insurance is a common and financially smart decision.
Replacing an Existing Insurance Policy: If your new insurance plan provides more comprehensive coverage or a more favorable payment structure, cancelling your existing policy makes sense. Just be sure to coordinate the start and end dates carefully to avoid any gaps in coverage during the transition.
There are several legitimate reasons why car owners in Quebec may choose to cancel their auto insurance policy. Here are the most common scenarios:
Sale of the vehicle: If you have sold your vehicle, you are no longer required to maintain a car insurance policy. Canceling your policy prevents you from continuing to pay unnecessary premiums or monthly payments.
Moving outside Quebec: Moving to another province or country requires different insurance coverage. Since Quebec's system includes the SAAQ and private insurance, you will need to cancel your current policy and obtain new coverage from an insurer in your province/country.
Switching insurance companies: You can cancel your current policy if you switch to another insurance company or work with a new broker like OVC Assurance. Just make sure your new policy starts on the same date your previous policy was canceled.
Shopping for good coverage: You may discover that another insurer offers lower rates or more adequate coverage. Canceling to get more affordable car insurance is a common and financially sound decision.
Replacing an existing policy: If your new insurance policy offers more comprehensive coverage or lower monthly payments, it makes sense to cancel your existing policy. Just be sure to coordinate the start and end dates to avoid any gaps in coverage during the transition.
How to choose a car insurance broker in Quebec
Cancellation Costs and Penalties to Expect
Canceling an auto insurance policy in Quebec incurs fees. Whether you're ending your coverage early or switching insurers, it's important to understand the potential fees. Being well-informed about cancellation penalties, administrative fees, and refund options can help you make informed decisions and avoid unexpected costs.
Short-term cancellation: If you cancel your policy before its expiry date, the insurer will apply a cancellation fee. This method reduces your refund by more than the used portion of the premium, thus constituting a penalty for early termination.
Prorated cancellation: If your insurer cancels your insurance policy, no fee applies; this means you will be reimbursed for unused coverage days, calculated precisely based on the remaining policy term.
Fixed cancellation fee: Some insurance companies may charge a fixed administrative fee to process a cancellation. The amount varies depending on the insurer and the terms of your contract.
Non-refundable upfront fees: It's important to note that certain upfront fees, such as administration fees or those related to monthly payment plans, are generally non-refundable.
Car insurance cost: How much you pay per month on average in Canada
When Is It Best to Cancel Your Auto Insurance Policy?
The best time to cancel your auto insurance policy is near the renewal date. Cancelling at the end of the policy term helps you avoid early cancellation penalties, including short-rate fees, which can reduce your refund or increase your costs.
If you're switching to another insurance company, always make sure your new policy is in effect before canceling your current one. This ensures there are no gaps in coverage, which could negatively affect your driving record and future premiums. Maintaining continuous coverage is especially important. Canceling too soon without new coverage can result in higher premiums and limit your options with future insurers.
What to do When Cancelling Your Car Insurance?
Cancelling your auto insurance policy involves more than simply making a phone call. To avoid penalties, coverage gaps, or missed refunds, it’s important to follow a clear, step-by-step process. Whether you're switching to a new insurer or no longer need coverage, taking the right steps will help ensure a smooth cancellation while protecting both your finances and your driving record.
1. Review Your Auto Insurance Contract
Start by checking your current insurance contract for cancellation terms, including any cancellation fee, refund conditions, and notice requirements. Understanding these details will help you avoid short-rate cancellation fees or additional costs during the policy period.
2. Secure a New Policy First
Before canceling, arrange to purchase a new car insurance policy with a trusted broker like OVC Insurance. Make sure you don't have a single day without coverage, as driving without insurance is illegal and can lead to serious consequences.
3. Notify Your Current Insurer in Writing
Send an official insurance cancellation letter to your current insurer. Include the cancellation date, policy number, your full name and signature, and the reason for cancellation. This written notice ensures proper documentation and avoids any confusion regarding the cancellation date and your obligations.
4. Return Insurance Papers and Licence Plates if Required
If you're moving to another province, you’ll need to return your Quebec licence plates and notify the SAAQ to stop registration fees and avoid additional charges. If you’ve sold your vehicle or no longer need it, you should inform the SAAQ and surrender the registration documents to ensure your file is closed correctly and avoid any future penalties.
5. Request a Final Statement and Refund from the Insurance Company
Always request a final statement from your insurer, including full details of the reimbursement or short-term table, as well as any penalties, administrative fees, and other non-refundable costs. It's essential to keep this documentation for your personal records, as it may be useful when requesting future insurance quotes or when purchasing commercial auto insurance.
How to get car insurance: A simple guide ot finding the right coverage
Secure a New Car Insurance Policy with the Help of Professional Insurance Brokers
At OVC Assurance, we make finding the right insurance simple. As trusted insurance brokers, we connect you to over 20 top insurance companies with just one call. You’ll get direct, personalised service from an experienced broker who understands your needs.
We help you compare options, save money, and secure the most adequate insurance coverage—without the stress. Whether you're switching providers or looking for affordable car insurance, we’re here to streamline the process and ensure your peace of mind.