What is The Best Car Insurance in Quebec for 2023?
Quebec’s mix of public and private systems makes car insurance in the province a little more complicated than elsewhere.
It is well worth it, though. Did you know that Quebecers pay by far the lowest car insurance rates in Canada?
This guide looks at how car insurance works in Quebec, what coverage you need and how you can save on your insurance rates.
How does Quebec car insurance work?
Car insurance in Quebec is mandatory. While every province in Canada operates auto insurance differently, Quebec’s hybrid system, which splits responsibility between public and private players, stands out as unique. This shared responsibility helps to keep premiums much lower than elsewhere. Compare car insurance in Quebec vs Ontario, and Quebec comes out ahead with much cheaper rates thanks to the public SAAQ covering medical costs.
Let's look at how these systems work together:
- Quebec’s Public Automobile Insurance Plan: The Public Automobile Insurance Plan covers bodily injury stemming from an automobile accident. It is provided by the Société Automobile du Québec (SAAQ). Drivers pay for it through their fees when they register a car or renew their Class 5 driver’s license, but it covers non-drivers too. This coverage even extends beyond Quebec to other provinces and outside of Canada.
- Private car insurance: Purchasing a private car insurance policy is mandatory, and it covers a driver's civil liability. Because SAAQ covers medical expenses, Quebec has the lowest third-party liability requirement in Canada at $50,000. It is, by far, the country’s cheapest car insurance. In fact, Quebecers pay around half of what drivers pay in Ontario or Alberta. Mandatory private insurance primarily covers property damage and liability to others in an at-fault collision.
In addition, there are optional insurance guarantees for enhanced coverage:
- Collision or upset insurance: This type of insurance protects you if your vehicle collides with an object or another vehicle. This insurance covers the property damage, even if you are at fault for the accident.
- Comprehensive insurance: This insurance covers vandalism, broken windows, theft, fire, weather damage and more.
- Named or specified perils insurance: Finally, this covers risks that are specified in the policy. Pick what coverage you want à la carte. For example, you might decide to purchase coverage against theft and floods, but not for hail damage and vandalism.
Here is a summary table of what is included in each level of coverage:
|Car insurance type in Quebec||SAAQ||Third-party liability||Collision or upset||Comprehensive|
(Not at-fault accidents)
|Property damage caused to others|
What is the cheapest car insurance in Quebec?
No single insurer is the best for everyone or offers the universally cheapest rates. Drivers need to weigh their needs and their vehicles to get the best car insurance in Quebec. Above all, they need to compare insurance quotes.
Here's a list of the best Quebec car insurance companies:
- Aviva car insurance
- CAA car insurance
- Economical car insurance
- iA car insurance
- Desjardins car insurance
- L’Unique car insurance
- Onlia car insurance
- Optimum car insurance
- Pafco car insurance
- Promutuel car insurance
- RBC car insurance
- Scotiabank car insurance
- TD car insurance
- Wawanesa car insurance
Many top providers offer car insurance calculators on their websites so you can quickly plug in a few variables and get a personalized quote.
Car insurance rates are determined by a driver’s risk profile, where they live and their driving history. The vehicle's make and model and insurance profiles. The best way to get cheap car insurance is by comparing offers. Don't buy car insurance from the first company you ask for a quote from. By asking for three car insurance online quotes you will be able to weigh your options and see what a fair rate is for you.
How to get car insurance quotes in Quebec?
When you speak with an insurance company or broker they will want to know:
- Where you drive: if you live in Montreal or Laval you'll pay more than if you're in a small town away from urban centres.
- How much you drive: you'll feel the price difference if you drive 100km round trip to work every day versus 10km.
- Your age and experience: if you've had your license and driven incident free for a while you'll pay more than a 20-year-old who just purchased their first car.
- Your driving record: at-fault accidents, previous claims and demerit points will drive up your insurance rates.
- About secondary drivers: do you have a teenager at home who borrows the car a lot?
- What vehicle you are insuring: if your vehicle is statistically more likely to be in an accident or expensive to repair, your premiums will reflect that.
- What optional coverages and amounts you chose: weigh coverage amounts and endorsements against premiums.
The easiest way to get insurance in 2023 is to shop for car insurance quotes online. The comparison tool at the top of this page will help you to get started.
Good to know
As an alternative to using a comparison tool, you can get a quote by visiting the websites of multiple car insurance companies and filling out a request for each. This can be very time-consuming if you’re shopping a lot of providers. Alternatively, an insurance broker can help you over the phone or online. They are knowledgeable and often have access to competitive prices, but don't usually represent all brands.
Car insurance in Quebec vs Ontario: which is cheaper?
- The average car insurance cost in Quebec was just $717 per year in 2020 according to a report from the Insurance Bureau of Canada.
- On the other hand, the average cost of car insurance in Ontario in 2021 was estimated at $1,598 per year. That's an average of $133 monthly.
Good to know
Car insurance in Quebec is much cheaper than elsewhere in Canada. Indeed, Quebec’s hybrid system, which splits responsibility between public and private players, helps to keep premiums much lower than elsewhere.
How much is car insurance in Quebec?
The cost of car insurance in Quebec was estimated at just $717 per year on average, according to a report from the Insurance Bureau of Canada.
Averages don’t tell the whole story though. How much car insurance costs you in Quebec depends on a few factors. It won’t be the same for every driver. When giving a quote car insurance companies use statistics and consider:
- Your experience driving
- Your driving record
- Where you live
- The type of vehicle, make and model that you drive
- How you use your vehicle
- Other drivers on your car insurance policy
- Your deductible
Finally, the amount of coverage, optional add-ons and endorsements can significantly affect pricing.
Here are two real quotes our team pulled from two leading car insurance companies:
|Insurer||Third-party liability||Comprehensive||Monthly premium|
|Insurer A||$1 million||$37.08|
|Insurer A||$1 million||$98.58|
|Insurer B||$1 million||$67.58|
|Insurer B||$1 million||$172.08|
7 tips for cheaper car insurance in Quebec
It is possible to lower the price of your car insurance. So, for cheaper car insurance, follow these tips:
- Tip #1: Choose your deductible. Picking a higher deductible will lower your car insurance premium. This is a good way to lower your monthly bill if you rarely or never make claims. Just be aware that you’ll have to come up with more money if you ever make a claim.
- Tip #2: Combine your car insurance policies. When you insure several vehicles from the same household with the same company they will often give you a nice discount.
- Tip #3: Bundle to save. Combine your car and home insurance under one insurer. You may be eligible for a 15 to 20% discount over purchasing them separately. Whether you live Laval, Quebec city, Montreal, or elsewhere, bundling home and car insurance is a great idea to save money.
- Tip #4: Don’t buy more than you need. Choose optional coverages and endorsements carefully. For example, as a vehicle ages, you might prefer to drop comprehensive coverage and put the savings towards the down payment on your next car.
- Tip #5: Drive safely. Accidents, demerit points and claims drive up your insurance rates. You’ll pay a lot for that speeding ticket: once upfront and then monthly in the form of increased premiums.
- Tip #6: Drive a cheaper-to-insure vehicle. Some cars cost less to insure than others. You’ll pay more if you have a taste for sports cars and luxury SUVs.
- Tip#7: Install safety features. Once you have a vehicle, consider equipping it with an anti-theft device or other approved safety equipment. They may decrease the chance that you make a claim and drop your rates.
- Tip #8: Switch to a hybrid or electric vehicle. Increasingly insurers offer discounts for driving an eco-friendly vehicle.
Can you get temporary car insurance in Quebec?
A temporary car insurance is a solution for drivers who need insurance for less than the classic one-year car insurance contract. This type of policy can last for days, weeks, or even a few months, and is most often needed for Canadians wanting to go on a trip.
- However, Quebec does not offer car insurance for any less than six months long contracts.
What is the Société de l’assurance auto du Québec?
The Société de l'assurance automobile du Québec or SAAQ provides public car insurance and handles vehicle registrations and driver's licenses in Quebec. It also works to improve road safety in the province. The SAAQ is funded through driver's license fees and vehicle registrations. The amount varies depending on the needs of the fund. Contributions rise when there is an increase in the frequency or cost of claims.
For example, in 2021 here are how much the fees cost and what percentage went where:
|In 2021||Total||For automobile insurance fund||Admin fee||Ministère des Finances||Public Transportation|
|Class 5 driver's license||$87.28||$63.93||$4.75||$18.60||$0|
Fees will be higher if you have accumulated demerit points.
What endorsements should I add to my car insurance policy?
In addition to mandatory and optional insurance coverage, you may also add endorsements to your policy for better coverage. Here are the most popular options:
- Depreciation waiver: in the event of theft or total loss, you will get enough to replace your vehicle with an equivalent new vehicle. In the event of a partial loss, the damaged parts will be replaced with new ones.
- Loss of use of your vehicle: very useful if your vehicle is out of use for a while, especially if it is in the garage. This endorsement allows you to be reimbursed for the cost of renting a vehicle or to be reimbursed for the cost of transportation that you had to take.
- Family protection: If you and your family members are in an accident with an under-insured driver or in a hit-and-run, this option covers the costs beyond their limit.
- OPCF 27: Liability for Damage to Non-owned automobiles: get towing, tire changes, a battery jumped or winched out if you run into trouble on the road.
- Roadside Assistance: This covers services like towing, changing a tire, jumping a battery and winching if you run into an issue while driving.
- Accident forgiveness: your premiums won’t rise after your first at-fault accident.
Good to know
If you're unsure which endorsements make sense for you car insurer agents and brokers can help you find a policy that matches you!
Who can drive my car under my insurance in Quebec?
Private car insurance in Quebec covers a vehicle, not an individual. You are allowed to lend your car to someone else who can legally drive. Adults who live in your home and use your car regularly should appear on your insurance as occasional or secondary drivers.
Good to know
Ask if the person borrowing your car has an endorsement on their car insurance policy for damage to non-owned automobiles. If so, they can make a claim for your car on their insurance. It can help protect your insurance rates from rising should they have an accident in your car.