Québec automobile insurance market

Quebec motorists benefit from a proven insurance plan. However, the industry is not immune to disturbances due to supply shortages, and this is currently affecting claims settlement.

Claims Settlement Delays

Due to supply issues affecting the automotive industry, the time needed to settle a claim has gotten longer.  This applies to both car repair and replacement claims.

Insurers, working with their partners, have implemented various measures to meet the needs of their policyholders and minimize the effect of these delays.

In that sense, a policyholder needs to know about the coverage that is used to reimburse transportation costs such as those of a courtesy vehicle or the options provided by their “replacement cost 2” insurance.  There are different options available that change depending on their chosen coverage. To learn more on this subject, see our article on Infoinsurance.ca entitled Replacement cost insurance: learn about the provisions of your contract.

A Mixed System

The auto insurance system is mixed in Quebec. Private insurers cover motorists’ property damage and civil liability, while the Société de l’assurance automobile du Québec compensates motorists for bodily injuries.

The processes and rules put in place by the Groupement des assureurs automobiles do guarantee access to auto insurance and have proven their worth in ensuring automobile claims are settled fairly and equitably. 

Thanks to this system and the market’s characteristic competition, the cost of insuring a car in Quebec remains one of the lowest in Canada.

Although advantageous, the Quebec auto insurance market is still subject to economic, social and environmental whims, meaning that the number and cost of claims fluctuate, inevitably affecting the cost of auto insurance.

The Cost of Auto Insurance in Quebec1

- Average Premium (2021): $775

- Average Cost of Claims - Collision (2021) : $5,918


Car repairs: increasingly expensives

It’s no surprise that the cost to repair or replace a vehicle is rising year after year. Cars are like computers on wheels, equipped with increasingly cutting-edge that drives up the repair prices and the replacement cost of a vehicle.

Add to that the rising costs of parts and labour largely due to inflation.

In 2021, the average repair cost for a vehicle after a collision was nearly $5,895, an increase of 55% over 10 years.

Impact on insurance premiums

Rising costs of repairing or replacing a damaged vehicle invariably affect the cost of insuring it. It would be wise to check before settling on a vehicle.

The auto insurance market in Quebec is still competitive, so motorists should shop around to find a good premium.

Having issues insuring your car?

If you are having issues insuring your vehicle, the Insurance Information Centre can help.

1 Groupement des assureurs automobiles, https://gaa.qc.ca/en/statistics/at-a-glance/