Automobile Insurance
Auto insurance: what you need to know
There are two parts to automobile insurance: Section A – Civil liability (compulsory), which includes coverage for damage that your vehicle might cause to someone else’s property, and Section B – Damage to an insured vehicle (optional), which covers damages to your own car. Consumers who have questions can call their damage insurance agent or broker at any time. They are there to advise their clients.
One-way insurance?
This term refers to Section A, which is compulsory for automobile insurance. Its coverage includes:
- Damages to your vehicle resulting from a collision in Quebec for which you are not liable;
- Property damage and bodily injury caused to someone else in an accident that occurred outside Quebec and for which you are liable
“Two-way” insurance, Section B, covers damages to your own vehicle, and its equipment and accessories, resulting from an accident for which you are liable. You can choose from a variety of coverages; discuss them with your broker or agent.
Replacement cost or replacement insurance?
Consumers who wish to benefit from replacement cost after a loss can add endorsement Q.E.F. 43 to their automobile insurance contract or opt for replacement insurance Q.P.F. 5. Car dealerships may also offer this second option. Be aware, though: a dealership is not a certified representative and thus, in the event of fraud, the insured will not be eligible for compensation from the Compensation Fund of the Autorité des marchés financiers.
To learn more about the difference between the two products, review the comparison table that was designed to help damage insurance professionals better advise their clients. Above all, discuss this with your damage insurance agent or broker to decide on the product that best meets your needs.
Tools to help you
Have you bought a new car, or made any changes during the term of the contract or at renewal time? It is important to notify your damage insurance agent or broker of any changes that could impact your coverages.
Automobile insurance: FAQs
There are many unique aspects to automobile insurance. Below are answers to some of the questions that insureds commonly ask. However, if you have any questions about your automobile insurance, feel free to call your damage insurance professional.
I’m having trouble getting insured. What should I do?
Every owner of a motor vehicle in Quebec must carry at least $50,000 worth of compulsory civil liability insurance. The Groupement des assureurs automobiles (GAA) is responsible for guaranteeing access to such insurance. Contact them to find out how you can take advantage of this service
Visit the GAA'S Website
How do I choose my automobile insurance?
Contact a damage insurance agent or broker to discuss your situation. He or she will advise you on the coverage that meets your needs. The Autorité des marchés financiers (the Authority) has created a guide to help you learn more about the needs assessment, coverage offered in Quebec, and how to get a quote and purchase your insurance.
I had an accident. Am I at fault?
Your insurer will determine your liability based on the Direct Compensation Agreement. This agreement applies to all collisions that occur in Quebec between at least two vehicles whose owners have been identified.
To verify whether the agreement applies to your accident and to get a idea of your own liability, go to the website of the Groupement des assureurs automobiles.
If the other driver is at fault for the accident, will his insurer pay for the damage to my vehicle?
No, each insurer compensates its insured for material damages to their vehicle. In order to simplify compensation, the Groupement des assureurs automobiles established the Direct Compensation Agreement in 1978. This agreement stipulates that a victim whose vehicle suffers material damages must be compensated by his own insurer, if the collision occurred in Quebec and if it involves at least two vehicles whose owners have been identified; hit and runs are therefore excluded.
If the insured is not liable for the damages, his insurer will compensate him for all the damages; if the insured is liable for the damages, the insurer will compensate him based on the coverage provided for in the contract, and the deductible will apply.
To find out about the coverages included in your contract, contact your agent or broker. This certified professional is overseen by the ChAD. He or she will explain to you what your insurance contract contains and can advise you regarding coverage that fits your situation.
I had a little fender-bender that was my fault, but I’ve decided to assume the costs. Do I have to declare it to my insurer or to my damage insurance agent or broker?
It is always preferable to declare an automobile accident to your insurer, even if you do not make a claim. In Quebec, all automobile insurers have access to the Fichier central des sinistres automobiles. The Fichier contains all the automobile accidents that have occurred in Quebec over the past six years, whether or not a claim was made. This database is the property of the Autorité des marchés financiers, which has delegated its management to the Groupement des assureurs automobiles.
Some consumers prefer not to declare an accident since they fear the cost of their insurance will go up. However, even if you decide to pay to have your vehicle repaired, the accident will nevertheless be registered in your file in the Fichier central if the other driver declares the incident to their insurer. In this case, your insurer will have access to the information—however it will only be the other driver’s version of events. It is therefore preferable that you report the accident to your insurer so that your version of the facts can also be used to establish the liability that will appear in the Fichier central. The insurer will thus be able to establish the extent of your liability for the accident.
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What should I do in the event of an accident?
Notify your insurer as soon as possible by contacting your agent or broker, who will help you open the claim file. You must then describe the circumstances of the loss to the claims adjuster assigned to your file. The adjuster will explain the settlement process to you and will confirm the coverages provided in your insurance contract. Visit the Groupement des assureurs automobiles (GAA) site to see an overview of the automobile claims settlement process, from claim to repair.
How can I access my claims history statement (claims file)?
The Autorité des marchés financiers authorizes the Groupement des assureurs automobiles to collect information on your automobile claims from insurers. This information constitutes your claims history statement. You can consult it at any time and ask that verifications or corrections be made in case of error.
I was injured in a car accident. What should I do?
The government plan, which is administered by the Société de l’assurance automobile du Québec (SAAQ), compensates any person residing in Quebec for bodily injuries (for example, physical injuries, illness, death, etc.) suffered in an automobile accident anywhere in the world, on a “no fault” basis. If you have been injured in an accident, you can contact the SAAQ directly or discuss it with the claims adjuster assigned to your file, who will explain to you how to proceed.
Further information on the SAAQ site
If I lend my car to a friend for the weekend, is my automobile insurance still valid while he is driving?
If you occasionally or regularly lend your vehicle to a friend or a family member, we advise you to discuss it with your agent or broker. He or she will review your coverage and be able to tell you whether, for example, you need to add this driver to your contract or whether you need to add further coverage.
If my son uses my car, is he covered by my automobile insurance?
If your son, or anyone else, uses your car either occasionally or regularly, let your damage insurance agent or broker know. It might be necessary to add him to your contract. Otherwise, your claim in the event of an accident might be refused, or the compensation might not cover the full amount.
Does my automobile insurance cover material damages to a short-term rental vehicle?
To be covered by your automobile insurance for a short-term vehicle rental, you must add endorsement Q.E.F. No. 27 Civil liability resulting from damage caused to vehicles of which named insured is not owner. In fact, this endorsement is often more economical than the insurance offered by the rental firm. To find out whether this coverage is right for you, speak to your damage insurance agent or broker.
To learn more
If I rent a small truck to move some newly purchased furniture and I ask my son to drive it, do I have to add extra coverage to my insurance contract?
It all depends on your contract and the type of truck you rented. It is therefore preferable to contact your agent or broker to verify the current coverage in your contract. Discuss the type of truck you would like to rent and the fact that you would like your son to drive it. Your damage insurance professional will be able to advise you based on your needs and verify that you are properly insured.
My vehicle was declared a total loss following a serious accident. My insurer made a monetary offer to replace it, but I believe it is insufficient and that my vehicle was worth more. What can I do?
In some cases, the insured does not agree with the amount of compensation the insurer has offered. If this is your case, you can always ask the claims adjuster dealing with your claim to explain why or ask that your file be reviewed. We suggest that you back up your assertion by showing the claims adjuster assigned to your file examples of the asking price for comparable vehicles on the market today.
To find out more about what you can do if you disagree with your insurer, read What should I do if I disagree with my insurer’s decision?
Someone broke into my car and stole the baby seat, my golf clubs, and the laptop in the trunk. Is it true that home insurance covers these thefts?
It all depends on the type of property and your insurance contract. In general, items that are considered automobile equipment, as well as tools and accessories intended solely for car-related use, are covered by your automobile insurance—if, of course, your policy includes theft protection. This may include a child’s car seat if it is intended for use only in a vehicle.
On the other hand, sports equipment and the laptop are covered by your home insurance. If you do not have home insurance, these items will not be covered.
If your car has been robbed, talk to the claims adjuster assigned to your file about the best way to handle your claim. The adjuster will know how to advise you based on your specific situation.
When renewing your insurance contract, talk with your damage insurance agent or broker about the items and equipment you regularly leave in your vehicle. Your professional will be able to tell you what is covered and by which insurance contract. He or she will also suggest the proper coverage to meet your needs.
I replaced the original radio with a better one. Does my automobile insurance cover its theft?
You must notify your damage insurance agent or broker of any change you make to your vehicle. He or she will be able to explain to you the impact this could have on your insurance premium or which endorsement is appropriate to cover your property in the event of breakage or theft.
Before making any changes, we suggest you read the SAAQ’s brochure, Modifying your vehicle to find out about which modifications are allowed and which ones are prohibited.
I hitched a trailer to my vehicle for personal use. Does my insurance contract cover the use of a trailer?
If you have hitched a trailer to your vehicle, you must contact your agent or broker. He or she will ask you the questions needed to determine the types of coverage you will require. For example, they will ask you what type of trailer you have installed and what you intend to use it for. In general, if your trailer is being used for personal purposes, it is automatically insured under Chapter A – Civil liability,1 however no other coverage is included. If you use your trailer for work, you must explain this use in detail to your agent or broker so that they can advise you on the appropriate coverage for your situation.