9 misconceptions about car insurance in Quebec

The world of insurance is complex and there are many nuances to how it works, particularly in Quebec, where car insurance operates somewhat differently than in other regions. Some of these misconceptions can even cost you when it comes to your car insurance policy! Nobody wants that.

To help you, Panda7 has compiled a list of some of the most popular misconceptions about car insurance in Quebec.

Myth #1: Quebec's no-fault insurance means you cannot be found "at fault" in a collision with another vehicle.

The term "no-fault" is somewhat misleading because fault is technically determined regardless of the circumstances. The Quebec no-fault plan only applies to bodily injuries, which are covered by the SAAQ (Société de l'assurance automobile du Québec). Fault will be determined by your private insurer if you file a claim for property damage resulting from the collision. If you are at fault, damage to your vehicle will only be covered up to your collision coverage limit (if you have collision coverage) and will be subject to a deductible. However, if you were not at fault, the damage will be covered even if you don't need collision coverage.

Myth no. 2: You will pay more for your car insurance if you drive a red vehicle.

The insurance premiums you pay for your vehicle are independent of its color. It's a common misconception that red vehicles are considered "higher risk" and are therefore more likely to be involved in an accident, and consequently, they charge higher premiums. This isn't true. Yes, your car's make, model, and year are taken into account when calculating your premiums. If your vehicle is on the list of the most stolen vehicles in Canada or Quebec, you could face higher charges, but the color isn't considered when compiling that list.

Misconception #3: If you have "all hazards other than collision or disturbance", you are protected under all circumstances.

This type of coverage, which is optional on a car insurance policy, pays for loss or damage to your vehicle in situations not caused by a collision or upheaval. This includes damage such as theft, vandalism, storm damage, etc. – but you will need collision coverage if you have an accident with another car or a stationary object, such as a lamppost.

Myth #4: Car insurance rates are not regulated, so your insurer can charge whatever they want.

In Quebec, car insurance rates are strictly regulated. Private insurers in Quebec must submit a copy of their rate manual once it is issued, and then again 10 days after any changes are made. If you don't know why your rates have increased, contact your car insurer. The increase could be due to a problem with your vehicle, or it could be due to external factors beyond your control.

Myth #5: Two-door vehicles cost more to insure than four-door vehicles.

That's a myth. The number of doors doesn't matter. In fact, for some vehicles, four-door models are more expensive because the total cost of replacing the car is what's considered, not the number of doors. If replacing a four-door vehicle is more expensive than replacing a two-door one, you can expect the insurance premiums to be higher for the four-door vehicle.

Myth no. 6: Getting a parking ticket will increase your insurance rates.

Parking tickets, while technically considered "infractions," are not taken into account for your insurance or even your driving record. Only traffic violations are recorded on your insurance and driving records. However, if you do not pay your fines, your ability to renew your driver's license could be affected.

Myth no. 7: If you use your vehicle for work, your employer has insurance that covers you.

Auto insurance policies offered by private insurers only cover personal use of your vehicle and will limit coverage if you use your vehicle for business activities, such as deliveries or transporting clients. If you drive your vehicle for work, you must inform your insurer, who can then analyze your situation and determine if your policy will cover you or if you will need to extend your coverage by purchasing a commercial vehicle policy. Your employer may or may not reimburse your mileage expenses, but do not expect them to have insurance coverage for your specific situation.

Myth #8: If your neighbor borrows your vehicle and gets into an accident, their insurance will cover the damages.

Car insurance follows the car, not the driver. When you let someone borrow your vehicle, you're technically letting them borrow your insurance. Make sure you trust the person you let borrow your vehicle from, because if an accident happens, it will be your insurance company you'll need to contact to cover the damages.

Myth #9: Accidents in the United States will not be covered by your car insurance in Quebec.

The car insurance offered by private insurers in Quebec, as well as your liability insurance, will cover you throughout Canada and the United States.

You don't need to be an insurance expert.

You don't need to know your policy inside and out. It doesn't have to be bedtime reading. As long as you understand the basics, you should be fine, and know that you can always talk to your friendly Panda7 insurance brokers if you have any questions or concerns about your car insurance coverage.