Auto insurance: Understand it to save more

InsuranceInsuring a vehicleCar
Published on September 8, 2026
3 mins reading time
A woman, seated in the driver’s seat of a vehicle, smiles at her passenger, whose face is not visible.

Your auto insurance premium depends on many factors: your motor vehicle, your driving history, and your coverage choices. This guide will help you better understand the factors that influence your insurance premium, whether you’re looking to take out new auto insurance, adjust an existing insurance policy, or explore additional coverage to better protect yourself against loss or damage.

Why do auto insurance premiums vary from one insurer to another?

On a wooden surface, hands frame a white cardboard car, a symbol of auto insurance, next to a cup of coffee and a cellphone.
Insurance companies rely on a wide range of criteria to assess a driver’s risk. However, the weight given to each of these criteria differs from one company to another. That’s why two insurers can offer very different premiums for the same driver and the same vehicle. Shopping around for your auto insurance therefore becomes essential to finding the best deal.

Good to know: Insurers don’t set premiums randomly. They must be transparent and follow the strict risk classification rules set by the Autorité des marchés financiers (AMF).

What criteria are used to calculate an auto insurance premium?

Your auto insurance premium is set based on several factors, including:

  • Your vehicle: Type, make, model, year, popularity among thieves, safety rating, cost of repairs, anti-theft equipment, etching of main components, etc. Contrary to the myth, the colour of your car—even red—isn’t a determining factor.
  • Vehicle use: Personal, for work, commercial transport, etc.
  • Your sociodemographic data: Address, location where the vehicle is used, age, sex, occupation, education, etc.
  • The insurance coverage and deductibles you choose.
  • Your driving record: Number of years driving, type of vehicle use, annual mileage. Unless you use a telematics system, your driving habits aren’t analyzed.
  • Your credit report or credit card history.
  • Your history of auto claims or driving record, whether or not you were at fault.

These factors allow insurers to fine-tune your auto insurance policy and determine whether additional coverage is needed.

Always be honest in your declarations. Insurers have access to the Fichier central des sinistres automobiles (FCSA), which makes verification easy. If you spot an error in this file, have your information corrected as quickly as possible through the GAA.

Why do auto insurance premiums fluctuate from year to year?

Two major factors explain fluctuations in insurance premiums: the cost of repairs and the number of accidents, which are often linked to distracted driving. Cellphones, texting, and the use of GPS or touch screens draw drivers’ attention away and increase the risk of collision.

At the same time, newer vehicles contain many electronic components, which makes repairs more complex—and more expensive. For example, a collision claim cost an average of $8,392 in 2024, according to the Groupement des assureurs automobiles (GAA), and $7,613 for liability. Despite a drop in the number of accidents, rising repair costs have driven premiums up.

This trend partly explains why many policyholders end up with a higher premium, even without having filed a recent insurance claim.

Shopping around for your auto insurance: A smart habit and a healthy process

Inside a vehicle, a woman sitting in the passenger seat smiles and gives a thumbs up while a man drives.
Shopping around for your property and casualty insurance, such as your liability insurance, is essential to getting the best rate and the best coverage. In Quebec, the number of auto insurers is significant and the market is highly competitive. Request quotes from at least three insurers before taking out insurance.

Auto insurance premiums can vary significantly from one insurer to another. That’s because programs evolve, just as your needs do. To compare effectively:
  • Request equivalent quotes (same coverage and deductibles).
  • Ask for confirmations by email.
  • Check whether the 9% tax is included in the premium, since this isn’t always the case and it could skew your comparison.

Check out our other advice for saving on your auto insurance. And read every line of your insurance policy before signing it.

What are the benefits of using an insurance broker?

An insurance broker works with several insurers. They can:

  • inform you about current insurance rates for your policy;
  • help you compare available prices and coverage;
  • answer your questions based on your profile; and
  • support you if your situation is more complex (multiple claims, policy cancellations, criminal record, etc.).

Don’t hesitate to ask for the quotes your broker has obtained and to have the differences between offers clarified to help reduce your costs.

What is the Fichier central des sinistres automobiles (FCSA)?

The Fichier central des sinistres automobiles (FCSA), managed by the Groupement des assureurs automobiles (GAA), belongs to the Autorité des marchés financiers. It records all claims reported in Quebec since 1991, whether or not a claim was filed.

Every time you report an accident or file a claim, this information is added to your file. All insurers who are members of the file can access it and verify the information you provide, particularly when you’re shopping around for new insurance.

Make the right choices for your auto insurance

By understanding the criteria that influence your auto insurance premium and comparing offers, you’re better equipped to shop around and save. Use the resources available, such as insurance brokers or online quote tools and insurance comparison sites, to make informed decisions. The right coverage means peace of mind … at the right price.

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