Bonne question

General information only. This isn’t insurance advice: your policy always has the final say.

Guide · Auto insurance

How auto insurance works in Quebec

In Quebec, two payers share the work after an accident: the SAAQ for injuries, and your insurer for the cars.

In short

The SAAQ pays for injuries, no matter who’s at fault. Your insurer pays for damage to cars. Your policy has two parts: Chapter A, mandatory, pays for what you cause to others. Chapter B, optional, pays for your own car. After an accident, your own insurer pays you, even if the other driver is at fault.

Who pays what after an accident?

SAAQ (public plan)

  • Injuries to Quebec residents
  • No matter who caused the accident
  • Funded through your licence and registration fees

Your private insurer

  • Damage you cause to other people’s property (mandatory)
  • Damage to your own car (optional)
  • Your liability for injuries caused outside Quebec
ExampleYou’re hit at a red light. The SAAQ pays for your physiotherapy and lost income. Your insurer pays for your bumper.

What your policy covers: Chapters A and B

Your auto policy is split into chapters. Chapter A is mandatory. Chapter B protects your own car. It’s optional and comes in four forms, B1 to B4.

A

Damage you cause to others

Civil liability · mandatory, minimum $50,000

Pays for damage you cause to other people’s property, like their car or their fence.

Outside Quebec, and an example

Outside Quebec it also pays for injuries you cause: there, you can be sued, and the SAAQ doesn’t protect you. $1 or $2 million is often recommended.

You back into your neighbour’s fence: Chapter A pays for the repairs. On vacation in Vermont, you injure a driver, who sues you for $800,000. With a $50,000 limit, you pay the remaining $750,000 yourself.
B1

All risks

Optional · the most complete

Covers your car in almost every situation: collision and all other perils combined.

Example
You slide on ice into a pole: covered. A tree falls on your parked car: also covered.
B2

Collision or upset

Optional

Covers your car when it hits an object, an animal or another vehicle, or rolls over.

Example
The pole on the ice: covered. Hail denting your hood: not covered by B2.
B3

All perils except collision

Optional

Covers almost everything that isn’t a collision: theft, vandalism, fire, hail, glass breakage, hitting an animal.

Example
A rock cracks your windshield on the highway, or you hit a deer: covered. The pole on the ice: not covered by B3. A deer is also covered if you only have B2.
B4

Specified perils

Optional · the most limited

Covers only the perils named in the policy, such as fire, theft or hail. Often chosen for a stored or low-value car.

Example
Your old summer car is stolen from the garage: covered. Someone keys the paint: not covered if vandalism isn’t on the list.

Many drivers combine B2 and B3, which comes close to B1, sometimes with different deductibles.

What people say, and what it means

Common Quebec expressions, translated into insurance terms.

“I’m insured on both sides” (assuré des deux bords)
It doesn’t mean the left and right sides of the car. It means you have both parts of the policy: Chapter A, which pays for damage you cause to others, and Chapter B, which protects your own car.Check which Chapter B forms you have. With B3 only, a collision isn’t covered. With B1, or B2 and B3, you slide on ice into a pole: your car is paid, minus the deductible.
“I’m only insured on one side” (juste d’un bord)
You only have Chapter A, the mandatory civil liability. It pays for damage you cause to others, not for your car.One exception: another identified driver hits you in Quebec and you’re not at fault. Your insurer still pays for your car, with no deductible, thanks to the Direct Compensation Agreement.
“I paid my registration, so I’m insured.”
Not for everything. What you pay the SAAQ with your licence and registration funds compensation for injuries. You also need private insurance with at least $50,000 in civil liability.
“Quebec is no-fault.”
Only for injuries: the SAAQ compensates you no matter who’s at fault. For cars, fault counts. Your insurer sets your share of fault with the fault chart, and that changes what you’re paid.
“I have all-risks coverage, so everything’s covered.”
No. “All risks” means everything is covered, except what the policy excludes. For cars and homes alike, there are still exclusions, like wear or a mechanical breakdown.
“Not my fault, no deductible.”
True in most cases in Quebec. If you’re 0% at fault in an accident covered by the Direct Compensation Agreement, your insurer pays for your car with no deductible.One exception: hit-and-run. The deductible applies, unless you have the Q.E.F. 41 endorsement.

How to read the first page of your policy

This page, the declarations page, says who drives, which car is insured and which coverages you have. Open the fictional example and tap a line to see what it means.

See the example
Auto insurance · declarations · fictional example
Q.E.F. 43 · Replacement value

The line to read twice

Without this endorsement (change in indemnification), if the car is stolen or written off, you’re paid its depreciated value, not a new model. On a 2022 car, the gap can reach several thousand dollars.

The Direct Compensation Agreement: your own insurer pays you

The Direct Compensation Agreement (CID, Convention d’indemnisation directe) is an agreement between Quebec insurers. After an accident between two or more cars, you don’t claim from the other driver’s insurer. Your own insurer pays for your car, based on your share of fault.

1

You call your insurer, even if the other driver is at fault.

2

It sets each driver’s share of fault using the fault chart, a grid every insurer uses.

3

It pays you for the share you’re not responsible for. The rest, only if you have collision coverage (B1 or B2).

Try the fault chart

Pick a situation to see how fault is usually shared.

The vehicle that hits the back of another travelling in the same lane is 100% at fault.

For your car: Damage to your car is paid only if you have collision coverage (B1 or B2), minus the deductible. The other driver’s car is paid by their own insurer.

Simplified examples. The full chart has many more cases and is based on the Highway Safety Code.

What you receive, based on your share of fault
Your shareWhat your insurer pays for your car
0%All the damage, with no deductible, even if you only have Chapter A.
50%Half, thanks to the agreement. The other half only with collision coverage (B1 or B2), and you pay half your deductible.
100%Nothing for your car, unless you have collision coverage (B1 or B2), minus the deductible.
ExampleYour car has $4,000 of damage. You’re 50% at fault. Your insurer pays you $2,000 thanks to the agreement. With collision coverage, it also pays the other $2,000, minus half your deductible. Without it, those $2,000 are on you.

When the agreement doesn’t apply

The agreement applies only in Quebec, when at least two cars whose owners are different and identified are involved. Otherwise, your car is mostly paid by your collision coverage (B1 or B2). Your injuries are still paid by the SAAQ.

You hit a tree, a post or a fence
Your car is paid only if you have collision coverage (B1 or B2), minus the deductible. Otherwise, repairs are on you. Your neighbour’s fence is paid by your Chapter A.Example: $3,000 of damage, $500 deductible. With B2, you get $2,500. Without B2, nothing.
Hit-and-run
The other driver flees and isn’t found. Your collision coverage (B1 or B2) pays for your car, minus the deductible. It’s the one accident where you’re not at fault and still pay the deductible. The Q.E.F. 41 endorsement waives it, up to $1,000. Report it to the police quickly.Without collision coverage, the SAAQ may pay for your car if the accident happened in Quebec. You need a police report within 48 hours and a claim within 60 days. It pays up to $10,000, minus a $500 deductible.
Accident elsewhere in Canada or in the United States
The agreement doesn’t apply. The rules of the place of the accident do. If the other driver is at fault, you claim from them or their insurer. With collision coverage, your insurer can pay you first, minus the deductible, then recover the money. If you’re at fault, your Chapter A pays for damage and injuries caused to others, up to its limit.This is where a $50,000 limit gets risky: an injury lawsuit in Ontario or the U.S. can far exceed it. The SAAQ covers your own injuries, even outside Quebec.
Two cars with the same owner
You back into the household’s other car, registered in your name. Both have the same owner, so the agreement doesn’t apply. Each car is paid only by its own collision coverage, minus the deductible.

Exact rules depend on your policy. If in doubt, call your insurer before getting repairs. Sources: Groupement des assureurs automobiles, CAA-Québec, SAAQ.

Endorsements: what you can add

An endorsement adds, removes or changes a coverage. In Quebec the wording is the same at every insurer: these are the Quebec endorsement forms (Q.E.F., or F.A.Q. in French), approved by the Autorité des marchés financiers. Here are the most common ones.

Change in indemnification (Q.E.F. 43)

Often called “new replacement value”

Six options, A to F. Option A, for example, pays for new parts, with no depreciation, when your car is repaired. Other options apply to a total loss: you’re paid with no depreciation, or for a new model, if the car meets certain age conditions. Option E is for the first buyer of a new car, for a loss within 5 years of the model year.

ExampleYour car bought new for $40,000 is stolen after 18 months. Without the endorsement you’re paid its current value, maybe $30,000. With option E, you can be paid for an equivalent new model.
Travel expenses (Q.E.F. 20a)

A car during repairs

Your car is off the road after a covered loss? This endorsement pays for public transit, taxis or a similar rental car, with receipts, up to the per-loss maximum in your policy. Without it, only theft of the whole car gives you travel expenses, up to $3,000 per loss.

ExampleYour car is in the shop for 10 days after a collision. A $60-a-day rental costs you $600: the endorsement repays it, with receipts, up to the maximum.
Vehicles you don’t own (Q.E.F. 27)

When you drive someone else’s car

Driving a rented or borrowed car? This endorsement covers your liability for damage to that car, for the coverages and amount in your policy. It doesn’t apply to a car rented for a year or more.

ExampleYou rent a car for the weekend and scrape a low wall. The endorsement can pay for repairs, minus the deductible, which may let you skip the counter insurance.
5 more endorsements
Change to deductibles (Q.E.F. 41)

No deductible in some cases

Two options. With “hit and run”, you don’t pay the deductible, up to $1,000, if an unidentified person damages your car on a public road. It must be reported to police without delay. With “total loss”, you don’t pay the deductible, up to $1,000, if the car is a total loss.

ExampleA hit-and-run causes $2,800 of damage and your deductible is $500. Without the endorsement, you get $2,300. With the hit-and-run option, you get $2,800.
Roadside assistance (Q.E.F. 33)

Boosts, towing, flat tires

Repays you, with paid invoices: a battery boost, unlocking the doors, fuel delivery (up to 10 litres), a wheel change and towing up to 25 km. The amounts and number of calls per year are in your policy. Mechanical repairs aren’t covered.

ExampleYour battery is dead on a January morning. You pay for the boost, keep the invoice and your insurer repays it, up to the limit.
Accident benefits (Q.E.F. 34)

A complement to the SAAQ

Pays benefits if a car accident injures you, your spouse or your dependent children: death, dismemberment and medical expenses, up to the amounts you choose. Disability coverage can be added. It’s paid on top of what the SAAQ pays.

ExampleYou choose a $25,000 principal sum. An accident causes the loss of a hand: the endorsement pays 50% of it, $12,500, on top of SAAQ benefits.
Glass limitation (Q.E.F. 13c)

Less coverage, lower premium

Glass breakage is no longer covered by B3, unless it’s caused by one of these events: theft, hail, fire, lightning, windstorm, rising water, riot, earthquake or explosion.

ExampleA rock cracks your windshield on the highway. With this endorsement, the $900 replacement is on you. If hail breaks it, it’s still covered.
Storage (Q.E.F. 16 and 17)

When the car sits for months

Q.E.F. 16 suspends coverage for driving while the car is stored. Your other coverages continue. Q.E.F. 17 reinstates everything on the date you choose. The steps are below, under “What the law asks of you”.

ExampleYou store your convertible from November to April. You keep theft and fire coverage, and part of the premium may be refunded.

Plain-language summaries written by Bonne question. Only your policy wording counts: amounts and chosen options are listed on your declarations page.

What the law asks of you

Is your car on the road? It must be insured.
The owner of a car driven in Quebec must carry at least $50,000 in civil liability. Without insurance, the fine is at least $325.If you cause more than $500 of damage while uninsured, your licence is suspended. Your vehicles can’t be driven until the damage is paid.
Not driving for months? Put the car in storage (remisage).
Before you store it, tell the SAAQ, online or at 1-800-361-7620. The car can’t be driven, and the plate stays on. Part of the registration fees may be refunded.Tell your insurer too. The Q.E.F. 16 endorsement suspends coverage for driving, but your other coverages continue, such as theft and fire if you have B3. Part of the premium may be refunded.To get back on the road, reactivate the registration with the SAAQ and tell your insurer. The Q.E.F. 17 endorsement reinstates coverage on the date you choose, never earlier. With no date, it’s the following April 1. After a year or more in storage, the SAAQ may require a mechanical inspection.
Tell your insurer what changes the risk.
When you take out the policy, then every time it changes: a new driver, like a teenager who just got their licence, how the car is used (work, delivery, ridesharing), where it’s parked, any modifications.An example? You start delivering meals with your car without saying so. Your premium should have gone from $1,200 to $1,500. If you acted in good faith, the insurer pays in proportion: $1,200 out of $1,500, so 80% of the payout.If there was bad faith, or if it wouldn’t have accepted the risk, it pays nothing. Source: Civil Code of Québec, articles 2408, 2411 and 2466.
After an accident, tell your insurer quickly.
Do it even if you don’t plan to claim. When it asks, explain what happened and provide documents, such as the joint report and photos. If you want to be repaid, wait for its go-ahead before getting repairs.Source: Civil Code of Québec, article 2471, and Autorité des marchés financiers. What to do at the scene and how to fill out the joint report →

Why do premiums vary so much?

Each insurer gives these factors a different weight. That’s why prices vary from one insurer to the next.

What insurers look at

Insurers mostly look at:

  • your driving record and past claims;
  • the car: its value, parts cost, theft risk;
  • where it’s parked;
  • how it’s used: work, pleasure, mileage;
  • the listed drivers and the coverages you choose.
ExampleTwo neighbours with the same car can pay very different premiums if one drives 40 km a day to work and had an at-fault claim last year.
Did you know?
Since 1978, the SAAQ has compensated people injured in a car accident in Quebec, no matter who is at fault. Before that, an injured person generally had to prove the other driver’s fault to be compensated.Source: Automobile Insurance Act, in force since March 1, 1978.

A question about your own policy?

This site explains the general rules. Only your insurer can say what your policy covers: ask your agent or broker. This site doesn’t make recommendations. To choose coverage, also talk to a certified professional.

  • Check an agent or broker: AMF register, at lautorite.qc.ca
  • Insurance information: Autorité des marchés financiers
  • General insurance questions: Centre d’information sur les assurances, 514-288-4321 or 1-877-288-4321
  • Injuries in a car accident: SAAQ
  • Professional conduct: Chambre de l’assurance de dommages