IN QUEBEC, WE HAVE BOTH PUBLIC AND PRIVATE AUTO INSURANCE. HERE'S WHAT YOU NEED TO KNOW.
The public plan, administered by the Société de l'assurance automobile du Québec, provides universal coverage for bodily injury resulting from a motor vehicle accident. We pay for it with our driver's licence. It's a must.
Private insurance is offered by various insurance companies. It covers material damage to the insured vehicle as well as third-party liability. It is compulsory.
The Contract
Whatever the insurance company, the contract is standardized and approved by the Autorité des marchés financiers (AMF). It's the same contract for everyone. The difference lies in the coverage, the deductible and the insurer you choose.
The Deductible
The deductible is the amount you have decided to pay in the event of an accident for which you are at fault. If the accident was not your fault, you don't have to pay the deductible. Choosing a high deductible means a lower premium. Conversely, choosing a low deductible means a higher premium.
Premium Adjustments
- A perfect driving record means a lower premium. Accidents and demerit points increase the cost of a premium. In addition, a driver's years of experience affect the premium.
- A good credit history also helps reduce insurance premiums. In the eyes of insurers, people with bad credit are high-risk profiles. And high-risk profiles mean higher insurance premiums! However, insurers do not have the right to see your credit file without your consent, and you always have the right to refuse, but this will increase the premium.
Compared to Save
Several online tools allow you to simulate and compare different car insurance offers according to your profile and the vehicle to be insured. Are you a young driver who's just got your licence? Before you buy a super sports car, check the cost of insurance. It might change your mind!
Before buying a vehicle ...
If you're in the market for a vehicle, it's a good idea to compare the cost of insuring different models. For example, a vehicle that is popular with thieves is likely to cost more in premiums. The same goes for vehicles that are very expensive to repair, such as certain European cars. A newer, insured vehicle with a good reputation will help you get a fair insurance premium, better auto financing and save a lot of money. Happy driving!