If you have just moved to the province or bought your first vehicle, understanding car insurance in Quebec can be confusing. Unlike most provinces, Quebec splits coverage between a public plan for bodily injuries and private insurers for property damage. Here is how the system works and what you must buy.
Car insurance in Quebec: a two-part system
1. Bodily injuries: the SAAQ public plan
Since March 1, 1978, the Société de l’assurance automobile du Québec (SAAQ) covers bodily injuries caused by automobile accidents in Quebec on a no-fault basis. This means injured people are compensated regardless of who was responsible for the accident. This coverage is funded through fees paid with your licence and registration.
2. Property damage: private insurers
Damage to vehicles and property is covered by private insurance companies, supervised by the Autorité des marchés financiers (AMF). That part is the policy you shop for and buy.
What coverage is mandatory?
- Civil liability (Section A): compulsory. Every vehicle owner must carry at least $50,000 in civil liability coverage for property damage caused to others.
- Damage to your own vehicle (Section B): optional, but most owners buy it, especially with a car loan or lease. It includes collision and upset, comprehensive and specified perils coverage.
Many drivers choose a liability limit well above the minimum, since $50,000 can be quickly exceeded if an accident occurs outside Quebec. Compare limits and deductibles when you request quotes.
The Direct Compensation Agreement
In force since May 1, 1978, this agreement applies to accidents in Quebec involving at least two vehicles whose owners are identified. Instead of claiming from the other driver’s insurer, you deal with your own insurer, which pays you under Section A according to your degree of fault.
A worked example
- Your car has $1,500 in damage and you are 75% at fault. You have a $250 collision deductible.
- Section A pays the 25% you are not responsible for: $375.
- Section B (if you bought collision coverage) pays 75% of the damage minus 75% of the deductible: $1,125 − $187.50 = $937.50.
- Total paid: $1,312.50.
Without collision coverage, you would only receive the $375 from Section A.
Tips to pay less
- Compare several quotes with identical coverage and deductibles.
- Ask about discounts for winter tires, anti-theft systems or bundling home and auto.
- Consider a higher deductible if you can absorb small repairs.
- Factor insurance into your budget before buying; see how much car can I afford in Canada.
Moving between provinces? Compare with our guides on car insurance quotes in Ontario and how car insurance works in BC. Before buying a vehicle, also read how to buy a used car in Quebec.
FAQ
Is car insurance mandatory in Quebec?
Yes. Civil liability coverage of at least $50,000 is compulsory.
Who pays for injuries after an accident?
The SAAQ, on a no-fault basis, for accidents in Quebec.
Do I claim from the other driver’s insurer?
No. Under direct compensation, you claim from your own insurer.
