Guide to auto insurance for newcomers in Quebec

Is Auto Insurance Mandatory in Quebec if You Own a Car?

Yes. In fact, all vehicles on the road in Quebec must be insured by their owners through a private insurance company, such as iA Auto and Home. By law, you must have an auto insurance policy that provides a minimum of $50,000 in civil liability insurance. For real peace of mind, however, most insurers recommend civil liability coverage of one or two million dollars.

Quebec’s auto insurance board, the Société de l’assurance automobile du Québec (SAAQ), covers persons against risks associated with road use and helps enforce various laws and regulations. For example, it administers the public automobile insurance plan, compensating victims of traffic accidents and determining user premiums. Important information for newcomers can be found directly on the https://saaq.gouv.qc.ca/touristes-nouveaux-arrivantsSAAQ website.

Newcomer Car Insurance: What Coverages Are Recommended?

As mentioned earlier, civil liability coverage is mandatory. In particular, it covers:

• Damage to your vehicle if you have an accident in Quebec for which you are not at fault.
• Property damage caused to third parties for which you are at fault, in Quebec, Canada and the United States.
• Bodily injury caused to third parties when an accident for which you are at fault occurs outside Quebec (Canada and the U.S.).

The second coverage to consider is collision and upset. This essential coverage compensates you for damage in the event of an at-fault collision, a rollover or if you are the victim of a hit-and-run. If you have limited driving experience in Quebec, or if your vehicle is financed by a lender, this coverage is highly recommended to protect your investment.

The third recommended coverage, all perils except collision and upset, covers damage to your vehicle not caused by collision or upset. This includes theft, fire, vandalism, broken windows and damage caused by severe weather (such as wind, lightning or hail).

A fourth coverage also exists, specified perils, which is sometimes referred to as “fire and theft”. It covers specific damage to your vehicle not caused by collision or upset.

Why Do I Need Auto Insurance?

Aside from the fact that civil liability coverage is mandatory, here are a few concrete examples of situations that show the benefits of having comprehensive coverage tailored to your needs.

Collision and Upset – Examples

• You run into the car in front of you and the accident causes damage to your vehicle.
• You realize that another vehicle has hit your car and the rear bumper is damaged, but no one has come forward to claim responsibility. This is a hit-and-run.

All Perils Except Collision and Upset – Examples

• Your windshield gets cracked by a rock flying up from the vehicle in front of you on the highway.
• You park your car on the street, and when you get back there’s graffiti on the hood.
• Your vehicle is damaged during a hailstorm.

How Much Does Auto Insurance Cost for Newcomers?

There’s no fixed price. The cost is determined on a case-by-case basis, as a number of factors directly influence a driver’s annual premium. When calculating the premium, insurers take into account numerous variables:

• Your driving experience: The number of years you’ve been driving can affect the cost of your insurance.
• Your insurance history: A record with no claims or violations is generally viewed more favourably by insurers.
• Your driving history in Canada: When a newcomer has little or no driving history in the country, the insurer has less information to assess the risk.
• The type of vehicle insured: The make, model, year and value of the vehicle all affect the premium amount.
• Use of the vehicle: The premium for a vehicle used daily to commute to and from work is not the same as for a vehicle used only occasionally.
• Kilometres driven annually: The more time you spend on the road, the greater the risk of an accident.
• Where you live: Some neighbourhoods have a higher risk of accidents, theft or vandalism.
• Coverages chosen: More comprehensive coverage generally results in a higher premium.
• Deductible amount: A higher deductible can help lower the cost of your insurance.
• Security devices: Certain anti-theft or tracking systems can help reduce the risk and, in some cases, the cost of your insurance.

Can I Drive with a Foreign Driver’s Licence When I Arrive in Quebec?

If you arrive in Quebec with a valid driver’s licence issued in another country or another Canadian province, you can generally drive for up to six months.

However, your driver’s licence must authorize you to drive the type of vehicle being used. For example, to drive a passenger car, you must hold a licence equivalent to Class 5 in Quebec.

If you plan to settle in Quebec permanently, it is recommended that you begin the process with the SAAQ as soon as you arrive. Depending on your country or province of origin, you may need to exchange your driver’s licence or have your driving experience recognized in order to obtain a Quebec driver’s licence.

Since the rules vary from one situation to another, it’s important to find out what steps you need to take before the end of the six-month period. For a better understanding of the requirements in Quebec, see our article Quebec driver’s licence: Everything you need to know.

What are the steps for driving in Quebec?

1. Get informed about the validity of your driver’s licence.
2. Carefully choose a vehicle with these 10 tips in mind.
3. Get an online auto insurance quote.
4. Compare quotes to find the auto insurance policy that best meets your needs.

What documents are required to legally drive in Canada?

• A valid driver’s licence
• The vehicle registration certificate
• The vehicle insurance certificate

We know that the period of adjustment to life in Quebec can bring up many questions, particularly regarding your personal finances. See this section for newcomers to find more relevant information. Rest assured, we’re here to support you every step of the way as you start your new life!

FAQ – Auto insurance for newcomers in Quebec

Can I drive with a foreign driver’s licence when I arrive in Canada?

In many cases, yes. A newcomer can generally drive with a foreign driver’s licence for a limited period after arriving in Quebec, provided that the licence is valid. Depending on your country of origin, however, you may need to exchange your driver’s licence for a Quebec driver’s licence or take certain exams. We recommend that you check with the SAAQ to see which rules apply to your situation.

What types of auto insurance coverage should I choose?

Civil liability coverage is mandatory. Additional coverage to protect against damage to your own vehicle resulting from a collision, theft, fire or vandalism may be useful, especially if your vehicle is relatively new or still being financed. A damage insurance agent can help you determine the coverage that best suits your needs and budget.

How can I reduce my auto insurance premium when I move to Quebec?

There are several strategies that can help you save money. Comparing quotes from several insurers is a good place to start. Choosing a vehicle that’s less expensive to insure, increasing your deductible, or bundling your auto and home insurance with the same insurer are also ways to help lower your premium.