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All about insurance in Canada

Car insurance: how does it work in Quebec?

You have just arrived in Quebec. You plan to buy a car and take out insurance. What are the elements to know?

In Quebec, you must take out automobile insurance.

However, all Quebecers are protected by the public plan that covers bodily injuries sustained in an automobile accident. This plan is administered by the Société de l’assurance automobile du Québec (SAAQ).

Insurers cover civil liability and material property.

You can do business with an insurance broker who offers products from different companies with which he has agreements. Or with an insurance agent who works for a particular insurance company.

You will find in your contracts several parts:

Mandatory part: CIVIL LIABILITY (Chapter A)

The Quebec Automobile Insurance Act requires you to have a minimum of $50,000 in liability insurance. It preserves you for everything related to:

material damage caused to others and for which you are held liable.
damage to your vehicle in the event of a collision in the province for which you are not responsible;
material damage and personal injury when an accident for which you are responsible outside Quebec;

Optional part: Protection in case of damage ( Chapter B)

You must choose between different forms of protection among the following:

Collision and rollover coverage (protection that will cover damage if you are at fault for the accident).
All risks except collision or rollover (coverage covers, among other things, theft of your vehicle, windshield breakage, damage caused by fire, vandalism, wind, hail and water and also insures you against damage resulting from a collision with people or animals – yes, that happens).
All-risk coverage (protection that includes the previous 2).
The Amendments

For an additional fee, you can also have various additional protections added. Here are two endorsements that are relatively common.

Amendment 43: Replacement cost. Provides compensation that does not take into account the depreciation of the vehicle.

Addendum 27: Protects you in the event of damage to a borrowed or rented vehicle.

Tips for paying less expensive car insurance premium:

  • Have assessments done with several insurers and renegotiate each year.
  • Take out all your insurance in one place.
  • Ask for a higher deductible;

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