How Does Car Insurance Work in Quebec? | Auto Insurance Guide
Quebec is known for its beautiful landscapes, rich culture, and one more major advantage; the lowest car insurance rates in Canada. Thanks to its unique hybrid car insurance system, Quebec drivers benefit from a combination of public and private insurance coverage, resulting in lower auto insurance premiums and better access to protection.
But what makes Quebec’s approach so different? In this guide, we explain how car insurance works in Quebec, including the roles of the SAAQ and private insurers, what’s mandatory, what’s optional, and how to find the right auto insurance policy for your needs.
What Is Quebec’s Hybrid Car Insurance System?
Since 1978, Quebec has used a hybrid car insurance system, the only one of its kind in Canada. This system blends public car insurance (managed by the government) with private car insurance (purchased through insurance companies).
Section A – Public Insurance: Managed by the Société de l'assurance automobile du Québec (SAAQ), this insurance coverage provides bodily injury protection for the parties in an accident, no matter who’s at fault.
Section B – Private Insurance: Covers property damage, collision coverage, and other optional coverages, which you buy from a private insurance provider.
This unique system allows Quebec drivers to get more affordable automobile insurance coverage, and it simplifies how claims are processed, making it a win-win for residents.
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The Role of the SAAQ
The société de l'assurance automobile du Québec (SAAQ) is the government-owned insurance corporation responsible for managing public car insurance in Quebec. It regulates all mandatory insurance coverage, sets and collects the insurance premium for accident benefits insurance, and ensures every licensed driver has coverage for injuries.
Lawsuits for bodily injury from car accidents are prohibited, instead the SAAQ pays for all medical expenses, income replacement, and other benefits, regardless of fault, and with 26,578 minor injuries caused from car accidents last year alone, they are an invaluable resource.
What is Covered by the SAAQ?
Income Replacement: If your injuries prevent you from working, the SAAQ pays up to 90% of your net annual income during recovery.
Medical and Rehabilitation Expenses: The SAAQ covers private medical care, therapy, and rehabilitation services needed to treat injuries sustained in a traffic accident.
Medication and Medical Devices: Costs for prescription drugs, medical supplies, assistive devices, and diagnostic reports are reimbursed when related to accident-related injuries.
Home and Vehicle Adaptation: If injuries require it, the SAAQ reimburses costs for necessary modifications to your home or car for accessibility and independence.
Funeral Expenses: If a loved one dies in an accident, the SAAQ provides a fixed amount to cover funeral and burial-related costs.
Compensation for Survivors: Family members of a deceased accident victim may receive lump sum payments or ongoing financial support depending on eligibility and need.
How Private Car Insurance Works in Quebec
In Quebec, the SAAQ provides coverage for bodily injuries resulting from motor vehicle accidents, regardless of fault. However, drivers must purchase private car insurance to cover property damage.
This includes mandatory coverage such as liability and direct property damage compensation (DPC) when you are not at fault. Optional coverages such as collision, glass breakage, and replacement cost can be added to protect your vehicle in a wider variety of situations. Certified brokers can help you compare quotes and tailor a policy to your needs.
What is Covered by Private Car Insurance?
Private car insurance in Quebec includes both compulsory and optional auto insurance coverage options. Understanding each type of coverage helps drivers choose the right protection. Here’s a breakdown of essential and additional private auto insurance coverage types available to vehicle owners:
Minimum $50,000 in Third-Party Liability Insurance: This required coverage protects you if you cause property damage or bodily injury outside Quebec (since SAAQ covers injuries within Quebec). It also covers damage to others' property, including vehicles, in Quebec. Most drivers opt for $1–$2 million in coverage.
Direct Compensation Property Damage (DCPD): This is mandatory in Quebec. DCPD covers damage to your own vehicle and its contents when you are not at fault in an accident. Your own insurer compensates you directly.
Additional Optional Coverage
Collision Insurance: Collision insurance covers the cost of repairing or replacing your vehicle after an at-fault accident, a single-vehicle crash, or a hit-and-run. It protects you from large out-of-pocket expenses for damage to your own car.
Comprehensive Insurance Except Collision or Upset: This insurance protects your vehicle against non-collision damage, such as fire, theft, vandalism, falling objects, or natural disasters like hail or flood. It offers broader protection than standard accident coverage.
Comprehensive: Comprehensive insurance combines collision and non-collision comprehensive insurance, with additional protection against risks such as theft or damage caused by a member of your household or an authorized driver. This is the most comprehensive coverage option.
Specified Perils: This coverage protects your vehicle only against perils specifically listed in your policy, such as fire, theft, flood, or certain natural disasters like hail. This is a more limited option, generally offered at a lower cost.
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Is Private Car Insurance Mandatory in Quebec?
Yes! Even with Quebec’s public injury coverage provided by the SAAQ, all vehicle owners are legally required to carry private auto insurance.
At a minimum, Quebec law mandates:
$50,000 in third-party liability insurance (covers property damage or injury caused to others)
Direct Compensation Property Damage (DCPD) (covers damage to your vehicle when you’re not at fault)
Most drivers choose $1–$2 million in liability coverage for better protection. These mandatory coverages protect you financially when you're at fault in an accident or involved in a collision where another driver is responsible. You must also carry proof of auto insurance while driving. Failure to maintain the required coverage can lead to fines, vehicle impoundment, licence suspension, or loss of compensation in an accident.
How to Get the Right Car Insurance Policy in Quebec
Finding the right car insurance policy in Quebec means comparing Canadian car insurance policies, understanding your needs, and working with a good insurance provider. Whether through an auto insurance company or broker, smart choices help you save and ensure your coverage fits your lifestyle, driving habits, and protection requirements.
Consult with an Insurance Broker
A licensed insurance broker from OVC Insurance understands the Quebec market and can match you with insurance products that suit your needs. They assess your specific situation, compare offers from multiple insurers, and clearly explain your coverage options. Working with a broker can help you uncover potential discounts and avoid paying for unnecessary coverage.
Compare Multiple Quotes
Use an insurance comparison service to evaluate rates from several insurance companies. Each insurer uses its own rating system, so prices can vary significantly. Comparing quotes ensures you find the most competitive auto insurance premium based on your driving history, vehicle, and coverage needs without sacrificing protection or quality service.
Bundle Policies
Combine your home, tenant, or business insurance with your auto insurance policy for bundled savings. Insurance providers often offer generous discounts for customers who carry multiple types of insurance with them. This not only simplifies your renewals but also lowers your overall cost while increasing access to additional insurance coverage options.
Maintain a Clean Driving Record
Avoiding accidents, tickets, and insurance claims helps build a clean, claim-free record. Drivers with safe, responsible habits are seen as lower risk and are rewarded with lower auto insurance premiums. A strong driving history also makes you eligible for additional discounts and keeps your future insurance premiums predictable and affordable.
Choose a Higher Deductible
Selecting a higher insurance deductible can significantly reduce your insurance premium. However, be sure you can afford the out-of-pocket expense if you file an insurance claim. This strategy works better for drivers who rarely make claims and want to save money on their auto insurance policy in the long-term.
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Find the Right Car Insurance Policy in Quebec
At OVC Insurance, we’re your trusted insurance broker in Quebec, dedicated to making auto insurance simple and accessible. We work with a wide network of auto insurance companies to help you find coverage that fits your needs at competitive rates.
Our knowledgeable team guides you through the details of Canadian car insurance, explains your options clearly, and customizes your policy to match your situation. Whether you're looking for mandatory coverage or optional add-ons, we're here to make the process easy and stress-free.