10 ways to reduce car insurance costs in Quebec
Owning a car means having car insurance – it's non-negotiable in Quebec. Even though rates in Quebec tend to be lower than in many other provinces due to the way car insurance works here, many drivers are always looking for ways to reduce their expenses and are constantly searching for the cheapest car insurance rates. Panda7 can help.
Understanding how your car insurance works is one of the best ways to manage your overall costs. For your better understanding, here are some of the most frequently asked questions about car insurance in Quebec:
How does car insurance work in Quebec?
Quebec's auto insurance system operates differently from other Canadian provinces, where drivers purchase hybrid coverage rather than dealing solely with private companies. Drivers in Quebec must purchase the minimum mandatory coverage for bodily injury and sometimes also physical damage. Any other type of auto insurance a driver needs or wants must be purchased from a private provider.
Is car insurance cheaper in Quebec or Ontario?
Ontario has some of the highest car insurance rates in Canada due to its large number of drivers per capita, rising insurance fraud, and increasing claims costs. That said, car insurance in Quebec is considerably cheaper than in Ontario, partly due to the combination of private and public providers. There are also liability limits in Quebec, whereas Ontario drivers often have much higher liability coverage (which can, in turn, increase premiums).
Are car insurance rates increasing in Quebec?
Short answer: yes. Car insurance rates are rising due to the increasing use of high technology in vehicles across Canada, which is not only expensive to buy but can also be costly to repair or replace. This also adds extra labour costs. If your high-tech vehicle were involved in an accident, it would cost significantly more to repair or replace than your average vehicle. Insurers will consider the type of car you drive when determining your rates. However, Quebec has the lowest average car insurance rates of any province. If you're looking for other ways to save on your car insurance, Panda7 has some tips for you.
How to reduce your car insurance rates in Quebec
#1: Drive carefully.
This should go without saying, but careful driving is the best way to lower your car insurance rates in Quebec and get cheaper car insurance because it can significantly reduce your risk of being involved in a car accident. The more accidents you are involved in (and the more serious the accident or collision), the higher your rates will be. Some providers may waive your first claim but increase your rates for each subsequent claim.
#2: Buy your home and auto insurance from a single provider.
Many insurers will offer you a discount if you take out your car and home insurance together with them. If you currently have different insurers for both, check if switching is worth the cost you would save by insuring both with a single provider.
#3: Increase your deductible.
By increasing your deductible, you can lower your car insurance rates in Quebec. Keep in mind that you will have to pay this amount if you need to make a claim, so this deductible should be an amount you could reasonably pay out of pocket.
#4: Review your existing policy.
There are mandatory insurance coverage requirements in Quebec (though not as many as in some other provinces) that must be purchased. You'll want your policy to cover you as much as possible and reflect your needs and budget. You may want to review your needs annually and adjust as necessary to ensure you never have unnecessary coverage.
#5: Ask about discounts.
You may be eligible for discounts and not yet know it. Fortunately, you can ask your insurance company for a list of available discounts. These may include loyalty program discounts, alarm/security system discounts, bundled offers, no-claims bonuses, and more.
#6: Take a driver education course.
If you're a young, new, or inexperienced driver, you may see higher rates than if you've been driving for a long time. You can mitigate this increase by taking an approved driver training course. You may even become eligible for a discount by doing so—but speak with your broker or insurance provider first to see if the cost/effort of the course justifies the potential discount.
#7: Buy a car with a high safety rating.
As tempting as it may be to buy a sports car, these vehicles have high theft rates and are more likely to be involved in road accidents. Not to mention, they're expensive! Your insurance premiums will also reflect their risk factor. If you're looking to budget, a vehicle with a low theft rate and high crash ratings might be a better option.
#8: Make your payments.
This is always a good idea, but making your payments on time is one of the best ways to ensure you maintain a trusting relationship with your insurance company. Be proactive and call if you think you might not be able to make a payment on time.
#9: Stay insured.
Canceling your car insurance, changing your policy, or leaving a gap in your insurance history can lead your insurer to increase your rates. Even if you don't own a vehicle but borrow one from family or a friend, you can request to be added to their policy to maintain continuous coverage and avoid gaps.