How is fault determined with car insurance in Quebec?

In Quebec, car insurance works a little differently than in other provinces. In most Canadian provinces, compensation rules can be misunderstood or misinterpreted. Quebec uses a joint public-private insurance system, and all Quebecers are covered by the Quebec public automobile insurance plan. This plan provides liability insurance to drivers, meaning compensation in the event of death or injury resulting from a car accident. One of the main rules of Quebec's public automobile insurance is that it covers everyone regardless of fault.

But how does no-fault insurance work in Quebec? What does it cover? Panda7 is here to explain the rules and compensation for no-fault auto insurance in Quebec. Here's how it works.

How does no-liability insurance work in Quebec?

No-fault insurance in Quebec, as a principle of compensation, does not take liability into account in the event of an accident. Consequently, no company, driver, or other party can bring a lawsuit against a person or party perceived to have been responsible for an accident or collision.

That said, the same rules do not necessarily apply to criminal offences. For example, if you were involved in an accident caused by an illegal offence, such as hit-and-run, impaired driving, or other criminal activity, the matter may be subject to the procedures outlined in the Criminal Code and the procedures outlined in the Highway Safety Code.

Let's say a pedestrian was hit by a vehicle. This pedestrian would be compensated by the SAAQ (Société de l'assurance automobile du Québec). In Quebec, this pedestrian could not sue the driver for injuries. Similarly, the driver could not sue anyone else.

It's also important to note that Quebec auto insurance follows an insured driver worldwide, regardless of whether you were at fault for the accident. Unfortunately, if another location uses a default system, you could still face legal action if you cause damage or injury to others. If you plan to drive outside Quebec, it's crucial to discuss this with your private insurer so you can extend your current coverage to ensure any unforeseen events are covered.

What are the advantages of no-fault car insurance?

No-fault insurance in Quebec significantly reduces the time it takes to settle claims. There's no arguing between insurance companies trying to determine who is responsible for the accident. Instead, the parties involved can have their medical or auto repair bills paid at an expedited rate. This is great for saving everyone significant hassle, and also money, since there's no way to sue the perceived "at-fault" driver—and therefore, no legal fees.

The basic principles of the no-fault insurance system are as follows:

• You only deal with your personal insurer in the event of a claim.
• Your provider will compensate you according to the limits and coverage of your policy.

Again, it's always possible to be charged by the police for driving. This falls outside the scope of no-fault insurance, and your insurance won't cover speeding tickets or other traffic violations.

If I am at fault in an accident, will my insurance premiums increase?

Even with a no-fault insurance system, your car insurance rates can increase. Many provinces use a no-fault insurance system for the same reasons as Quebec, but the systems may vary slightly in detail from one place to another. A common misconception about no-fault insurance is that fault is never determined. This isn't true—you can still be found at fault in an accident, even with a no-fault insurance system.

Furthermore, if you don't have accident pardon coverage or have a poor driving record, you might find that an increase will be effective at your next policy renewal. This increase can last from 3 to 9 years, depending on the insurance company. The actual increase may vary depending on how your insurer assesses your circumstances.

Your car insurance rates may remain the same if you have accident forgiveness insurance, were found not at fault, have a relatively clean record, and if the accident was relatively minor.

If your rates increase following an accident, there are still things you can do to lower your premiums. For one, you can complete an approved driver improvement course. Courses that qualify for discounts can vary, so be sure to call your insurer before spending any money. You can also increase your deductible, apply for other discounts, install a car alarm, and more.