Auto insurance: 10 useful things to know

1. Brokers don’t have access to all insurers

An auto insurance broker works with a limited number of insurers with whom they have an agreement. Other players, such as Desjardins or CAA-Quebec Insurance, deal directly with individuals only. To get a complete picture of your options, you’ll need to do some research on your own if you decide to work with a broker.

2. Filing a claim for minor damage can end up costing you more

Filing an auto insurance claim for repair costs under $1000 is rarely worthwhile. Between the deductible—often $200 or $500—and a possible increase to your car insurance premium, it can cost you more in the long run. Use your emergency fund for minor mishaps instead.

Good to know: After a car accident, you can have your vehicle repaired at the garage of your choice. Your insurer may suggest one from their preferred network of providers, but they cannot require you to use it. Find a reliable auto body shop among the member garages in the CAA-Quebec Approved Auto Repair Service network.

Otherwise, save your insurance for major losses, such as significant collisions. Keep in mind that you can always negotiate with your insurer—particularly when it comes to declaring a vehicle a total loss. You will, however, need to document your position.

3. Your credit score affects your premium

A strong credit file can help lower your auto insurance premium. Conversely, if you have late payments—even on a credit card or phone bill—you could end up paying more. This is an important factor that all insurers take into account.

4. Shopping around for insurance can save you money

Comparing auto insurance rates regularly is a good idea, since rates can change. Get at least three auto insurance quotes. Compare the coverage offered by each insurance company. Look at deductibles, optional coverages, endorsements, liability insurance, and available discounts.

That said, issuing a new insurance policy is costly. Some insurers may offer you a loyalty discount to encourage you to stay. Many platforms now make it possible to purchase auto insurance online in just a few clicks—convenient, but always take the time to read the details of your auto insurance policy before signing.

Good to know: The availability of additional coverage options—such as a replacement vehicle or coverage for rented vehicles in Canada and the United States—varies by insurer. Compare them carefully.

5. You can find insurance even with a difficult record

Too many claims, a criminal record, or a policy cancelled for non-payment? You’re not alone in having difficulty finding an insurer. Specialized insurers exist for high-risk profiles. The price will be higher, but you can still obtain auto insurance suited to your situation.

A property and casualty insurance broker can help you find these options. You can also contact the Groupement des assureurs automobiles Information Centre (GAA).

6. Where you live affects your auto insurance

The neighbourhood where you live can influence your auto insurance premium—even if you have a clean driving history. Insurers assess the risk associated with your area, for example a neighbourhood that has:

• A high rate of car theft
• Heavy traffic
• A quieter or rural character
• A high number of reported vandalism or property damage incidents

7. Misrepresenting or withholding information from your insurer can be very costly

The Civil Code of Québec requires you to disclose any information that could influence an insurer’s decision to cover you, including the setting of your premium amount. This includes how you use your vehicle and who drives it. Always be transparent—concealing information can result in a denied claim, even years later.

8. Bundling your insurance can save you money

Insuring your car, your home, and even your recreational vehicles with the same insurer can lead to savings. It also simplifies your life: one contact, one bill to manage for your home and auto insurance.

Good to know: If a claim involves multiple insured assets, the process is simpler when everything is covered by the same insurer.

9. Your premium is calculated based on several personal criteria

You and your neighbour or friend have the same car model, live in the same city, but pay different rates? That’s normal. Your age, driving record, and claims history all affect the cost of your insurance.

Your driving habits and the type of vehicle you drive also play a role. In general:

• Young drivers pay more than experienced drivers.
• Policyholders with multiple claims pay more than those with no claims history.
• People who drive fewer kilometres per year pay less than those who spend a lot of time on the road.

10. Certain situations require commercial insurance

Auto insurance in Quebec is designed for personal use. You should notify your insurer if you:

• participate in carpooling;
• deliver meals for a community organization; or
• volunteer to drive seniors to their medical appointments.

Tip: Speak openly with your insurer. Mention any changes and ask questions. Your agent may even be able to help reduce the cost of your insurance—but it’s up to you to ask!