Reporting vs. claiming damage – what’s the difference?

As we all know, car and home insurance protect your finances in the event of damages. But you should be aware that it’s sometimes better not to make a claim for minor damages. As the insured, you are under no obligation to claim compensation. However, you are obligated to always inform your insurer of any damages, i.e., report it. Here’s why:

Articles 2470 and 2471 of the Civil Code of Québec (CCQ) state that insured persons must report damages and the circumstances surrounding them to their insurer. Therefore, under these articles, you are legally required to report all damages, even minor ones!

Reporting: The importance of Quebec’s automobile claims database

Another good reason to comply with this obligation is the Fichier central des sinistres automobiles (FCSA), Quebec’s automobile claims database. This is a database managed by the Groupement des assureurs automobiles (GAA), an association of automobile insurers, which records all claims involving motor vehicles reported to an insurer in Quebec over the past six years. Insurers use the FCSA to assess the risk associated with a driver who is taking out or renewing an insurance policy.

Suppose you are involved in a fender bender in a parking lot and you decide to pay for the damages out of your own pocket, without reporting it, in the hope of maintaining your good record. However, the other person involved in the accident decides to report the damages. As a result, the damages are added to your FCSA file anyways, but the liability recorded for the accident may not reflect what actually happened.

Is submitting a claim always the best thing to do?

Not necessarily! Whether it’s a car insurance or home insurance claim, filing a claim for a small amount is generally not worthwhile. Sometimes it’s better to pay for minor repairs yourself. If you can keep your file claim-free, you’ll certainly benefit from preferred pricing!

iA Insurance: Your partner in the event of a claim

At iA Auto and Home Insurance, we believe that good service is based on clarity, trust and prevention. Our advisors are here to guide you, whether you choose to simply report the incident or proceed with a claim.

Why choose iAAH?

• Personal support tailored to you
• Easy online claim reporting tools
• Coverage designed for your life
• Fair pricing, based on your actual history

In summary: should you report or claim?

Still not sure? Talk to an iA advisor

Before making a decision, talk to an expert. A simple call can save you a lot of hassle.

Get a quote online or contact us

Frequently Asked Questions

1. What’s the difference between reporting damages and submitting an insurance claim for damages?

Reporting a claim means informing your insurer that an incident causing damage has occurred, even if you are not requesting compensation. Making a claim means requesting financial compensation for the damage incurred, under the coverage provided by your policy.

2. Am I obligated to report claims to my insurer in Quebec?

Yes. According to sections 2470 and 2471 of the Civil Code of Québec, you are required to report any damages, even minor ones, to your insurer. This allows for a fair assessment of your file and your level of liability.

3. Why do I need to report damages if I don’t want to submit a claim?

Because the claim could be reported by another person involved and appear in the Fichier central des sinistres automobiles (FCSA), Quebec’s automobile claims database. If you don’t report it yourself, your liability may not be appropriately represented, which could affect your insurance premiums.

4. Should I file a claim for minor damage?

Not necessarily. For minor damages, it may be more advantageous to pay out of pocket in order to maintain a good insurance record. A claims-free record can get you better rates in the long run.

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

The FCSA is an automobile claims database managed by the Groupement des assureurs automobiles (GAA), an association of automobile insurers. It lists all automobile claims reported in Quebec over the last six years. Insurers refer to it to assess risk when issuing or renewing a policy.

6. Will reporting damages automatically increase my insurance premium?

Not always. Reporting damages does not necessarily mean that your premium will increase. It’s the number of claims you submit and the amount of compensation you receive that have an impact on your premium.