Automobile insurance The best choices are informed choices
Whether you own or enter into a long-term lease for a vehicle (car, truck, motorcycle, etc.), it is important to take out automobile insuranceAutomobile insurance is insurance that covers civil liability related to a vehicle (for example, the damage caused by the insured’s vehicle). This insurance can also cover damage or loss related to the insured’s vehicle, for example in the event of an accident or theft..
Learn about the two parts of an automobile insurance contract and what each of them covers:
- Civil liability
This coverage is mandatory in Québec. It covers you in situations where your vehicle causes damage to someone else’s property, injures the person or causes their death.
This coverage constitutes Section A of your automobile insurance contract. - Damage to your vehicle
In Québec, you're not required by law to take out insurance covering damage to or theft of your own vehicle. However, if you have borrowed money to buy your vehicle or entered into a long-term lease for a vehicle, your financing or lease agreement will likely require you to have this type of insurance.
This coverage constitutes Section B of your automobile insurance contract.
Additional coverage: endorsements
Your automobile insurer can also offer you additional coverage, known as “endorsementsAn endorsement is a document appended to an insurance policy to amend the scope or conditions of the policy. ”. These endorsements are designated by the abbreviation “Q.E.F.,” which stands for “Québec Endorsement Form.”
The most common endorsements are:
- Q.E.F. No. 20, which lets you temporarily lease a vehicle of a similar category at the insurer’s expense in the event of a covered loss. The eligible expenses are the same as those covered by the additional coverage under paragraph 4.1 of Section B, Travel expenses due to theft of insured vehicle;
- Q.E.F. No. 27, which provides coverage if you are liable for damage caused to a vehicle that is rented or borrowed by you in Canada or the United States; and
- Q.E.F. No. 34, which provides benefits in the event of death, dismemberment or loss of sight caused by an automobile accident.
There are also endorsements to cover any loss in your vehicle’s value resulting from an accident, theft or other covered damage. These are:
- Q.E.F. No. 43: Replacement cost
- Q.E.F. No. 5: Replacement insurance
Find out about the features of these two products
Theft of your vehicle (in whole or in part)
If all or part of your vehicle is stolen, you may be receive compensation if your your automobile insurance contract includes any of the following:
- “All perils” coverage
- Coverage against perils other than collision or upset
- Coverage against specific perils
This coverage is set out in Section B of your contract.
Expenses related to the theft of your vehicle
Section B of your contract also provides additional coverage under paragraph 4.1, Travel expenses due to theft of insured vehicle. This coverage provides for the reimbursement of certain travel expenses resulting from the theft of an insured vehicle, up to a maximum of $3,000.
Eligible expenses may include:
- leasing of a temporary replacement vehicle of a similar category to the vehicle that was stolen;
- transportation expenses, such as expenses for the use of a taxicab or any other mode of remunerated transportation;
- unexpected additional travel expenses that you would not normally have to assume, such as tolls if you had a transponder, or gasoline if you had an electric vehicle.
Theft of property from your vehicle
If items or accessories are stolen from your vehicle, you must provide your insurer with a list of the missing property.
Which insurance covers the stolen property depends on what type of property is stolen.
- If vehicle accessories (such as a roof rack or tires) are stolen, the theft will be covered by your automobile insurance.
- If other personal property (such as a computer or skis) is stolen, the theft will be covered by your home insurance.
Q.E.F. No. 45 Warranty applicable to theft of entire vehicle
For certain models—typically the most frequently stolen ones— insurers may require that an anti-theft device or a tracking system be installed for the vehicle to be covered in the event of theft.
Ask your insurer if it covers the cost of installing the system or if equipping your automobile with the system will lower your insurance premium.
Before entering into an automobile insurance contract, make sure you understand everything that is covered by your insurer, the maximum amounts payable in the event of a claim, and the applicable deductibles.
Who can sell automobile insurance?
Damage insuranceDamage insurance is insurance that covers property (home, automobile) or a liability, such as in the event of a fire or accident, for example. agents and damage brokers are both authorized to offer automobile insurance products. Brokers must be able to obtain quotes from at least three insurers, whereas agents offer the products of a single insurer.
Damage insurance firms are also authorized to offer automobile insurance via the Internet.
An automobile dealer may, under certain conditions, offer you replacement insurance (Q.E.F. No. 5) when you buy or lease a vehicle.
Shop around!
The cost of insurance can vary from insurer to insurer for exactly the same coverage and conditions. You could save a lot by shopping around.
End of the insightIs your damage insurance representative or damage insurance firm authorized to offer you an automobile insurance product?
Proof of automobile insurance: electronic or paper?
You must be able to provide proof that the vehicle you’re driving is insured whenever someone like a police officer, for example, asks for it. Which is better: electronic proof of insurance you can display on your mobile phone when you need it or paper proof of insurance you keep within easy reach? It’s up to you! Presenting electronic proof of insurance instead of paper proof does not constitute an offense in Quebec.
Attention, however, you must:
- be able to provide this proof at any time, even if your phone battery is dead!
- make the proof of insurance accessible to anyone who drives your car, for example by sending it by e-mail.
- hold proof of insurance in paper format for travel outside Quebec, until electronic proof of insurance is accepted everywhere.