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Car insurance Quebec VS Ontario

When looking to purchase auto insurance, every province in Canada seems to have its own rates, rules, and regulations. This is especially true when comparing Ontario and Quebec auto insurance rates. In 2018, the average cost for auto insurance in Quebec was $642 while the average cost for auto insurance in Ontario was $1,445. That’s more than two and a half times higher for Ontarians. 

Is Car Insurance Cheaper in Quebec Than Ontario?

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Yes

Car insurance is exceptionally cheaper in Quebec than in Ontario. 

Why Is Car Insurance Cheaper in Quebec Than Ontario?

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Due to the fact that Quebec has a combination of public and private auto insurance providers as well as limitations on liability, they are able to offer lower rates on auto insurance. Ontario insurance providers are strictly private companies. These private companies deal with a very high number of insurance claims, lawsuits, and insurance frauds which directly drives the cost of auto insurance up in Ontario. Ontario drivers must also carry a much higher third-party liability coverage than Quebec drivers which also contributes to higher auto insurance rates. 

Lawsuits in Ontario

In Ontario, a driver who causes an automobile accident can be sued for excess pain and suffering or excess loss. Quebec drivers have capped payouts and disallow lawsuits for excess loss and pain and suffering. The ability for Ontarians to launch lawsuits also increases the risk for a higher number of insurance frauds. There have been instances where automobile accidents have been staged so organized crime members can embellish rehabilitation bills at clinics. 

How Auto Insurance Works in Quebec

In Quebec, a driver purchases a hybrid coverage method. A Quebec drive will purchase the mandatory coverage of bodily injury, and in some cases physical damage. For example in a hit and run situation. All other auto insurance coverage such as physical damage is then purchased from a private auto insurer. 

The Société D’Assurance Automobile Du Québec (SAAQ)

The SAAQ covers Quebec drivers, they have the comfort of knowing if they are in an automobile accident anywhere in the world whether they are at fault or not they will be covered for injury and/or death. The SAAQ may also provide coverage for insured Quebec drivers for:

  • Private Health Care Expenses
  • Financial Compensation for Monetary and Non-Monetary Damage
  • Clothing and Accessories
  • Automobile and Home Adaption Expenses
  • Occupational, Educational or Social Reintegration Expenses
  • Personal Home Assistance
  • Death and Funeral Expenses
  • Mediation and Medical Supplies, Devices and Reports
  • Labour Costs Incurred For a Family Business

Although this seems like a lot of auto insurance coverage, many Quebecers opt to purchase additional auto insurance through a private insurer. This is due to the fact that the dollar value coverage through the Public Automobile Insurance Plan is quite often not enough to cover all the costs incurred when you have been in an automobile accident. Having this type of dual coverage gives many Quebec drivers peace of mind. 

Cost of Auto Insurance is Increasing in Both Quebec and Ontario

Increase Auto Insurance Cost

With the evolution of highly technical vehicles now on the market, the cost of repairing these higher-priced vehicles has become quite expensive. When insurers are determining a driver’s insurance premium, the type of car that is driven plays a large factor. The higher the value of the car and the higher the repair costs are when involved in an accident the higher the driver’s premium will be. Some of the high-tech devices and sensors installed in newer vehicles include:

  • Back up cameras
  • Lane change cameras
  • Blind-spot monitoring
  • Adaptive cruise control
  • Navigation systems
  • Bluetooth devices

The increase in repairs not only includes the cost of the high-tech devices and sensors but it also adds to the overhead of repair shops when they have to purchase high-tech equipment to do the repairs. This also increases the labour costs at the repair shop as well. 

Mandatory Insurance Coverage Varies From Province to Province in Canada

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It’s amazing how auto insurance varies from province to province within Canada. Mandatory coverage also varies from province to province. The following is a list of mandatory coverage requirements for each province in Canada:

Ontario – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Accident benefits
  • Uninsured automobile protection
  • Direct compensation – property damage

Note:

Even though auto insurance is not obtained through the government in Ontario, the government plays a key role in regulating auto insurance policies. 

Quebec – Mandatory Auto Insurance Coverage

  • Civil liability
  • Accident benefits
  • Personal injury
  • Property damage

Note:

Quebec has no-fault insurance coverage through public insurance plans that protect drivers regardless if they are at fault or not. 

Alberta – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Accident benefits 

Note:

Alberta follows a tort-based insurance system. In Alberta a driver’s insurance provider will only cover a certain amount, the driver then has to go after the other person’s insurance provider for additional compensation. 

British Columbia – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Accident benefits
  • Hit and Run
  • Uninsured automobile protection
  • Inverse liability protection

Manitoba – Mandatory Auto Insurance Coverage

  • Third-party liability
  • All perils – includes collision and comprehensive
  • Personal injury

Saskatchewan – Mandatory Auto Insurance Coverage

  • Third-person liability
  • Personal injury
  • Property damage

Note:

Saskatchewan drivers have the choice of no-fault personal injury coverage or a tort policy. 

Newfoundland and Labrador – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Uninsured automobile protection 

Note:

Newfoundland and Labrador is the only province for optional coverage pertaining to medical, disability, funeral, and death benefits for drivers. 

Nova Scotia – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Accident benefits
  • Direct compensation – property damage
  • Uninsured automobile protection

Prince Edward Island – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Direct compensation – property damage
  • Accident benefits
  • Uninsured automobile protection 

New Brunswick – Mandatory Auto Insurance Coverage

  • Third-party liability
  • Uninsured automobile protection
  • Accident benefits
  • Direct compensation – property damage

Note:

A First Chance Discount is available for new drivers for up to 6 driving years. This unique discount offered by New Brunswick insurance providers was established to help new drivers afford to pay their car insurance providing they maintain a clean driving record for the entire 6 years. 

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