If you own a vehicle (car, truck, motorcycle, etc.), or lease one, you must have 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..
Your automobile insurance contract consists of two parts:
This insurance is mandatory in Québec. It covers damage caused by your vehicle.
It is sometimes called “Section A” coverage.
The “civil liability” part of your automobile insurance covers damage caused by your vehicle to another person’s property. For accidents that occur outside Québec, it also covers bodily injury caused to another person. In addition, it will cover damage to your vehicle, but only if the accident wasn’t your fault.
Damage to your vehicle
This insurance is not mandatory. However, if you take out a loan to buy a vehicle, or if you lease one, the financing company or financial institution will likely require you to buy this insurance.
This is sometimes called “Section B” coverage.
Who can sell automobile insurance?
Only 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 brokers are authorized to offer automobile insurance.
There’s one exception: An automobile dealer can, under certain conditions, offer replacement insurance when you buy or lease a vehicle.
Planning to buy or lease a vehicle from a dealer?
If you're planning to buy or lease a vehicle from a dealer, you should know about the following two types of insurance:
Replacement costFor automobile or home insurance, replacement cost is the amount needed to replace a damaged item with a new item.
If an insurance contract includes replacement cost coverage, the insured will receive a new item, or a cash amount equivalent to a new item, if an item has been irreparably damaged following a covered loss. endorsementAn endorsement is a document appended to an insurance policy to amend the scope or conditions of the policy.
In automobile insurance, endorsements have been standardized and are identical from one insurer to the other to make comparing insurers’ offers easier. and replacement insurance
- These two insurance products are similar.
- If your vehicle is a total loss, you can get a new vehicle rather than a sum of money corresponding to the actual value of your vehicle.
- They also cover parts: You'll receive new original equipment manufacturer parts.
- These two insurance products are not mandatory.
For more information, consult our page Replacement cost and replacement insurance
Life, health and loss of employment insurance
- This insurance reimburses your automobile loan in the event of death, disability or loss of employment.
- It is not generally mandatory. However, if you take out a loan to buy a vehicle, or if you lease one, the financing company or financial institution may require you to buy this insurance.
For more information, consult our page Buying an automobile: life insurance mandatory?
Is your representative authorized to offer you an insurance product?
- Consult the Register of firms and individuals authorized to practise
- Contact an AMF Information Centre agent
- Send us a Request for information This link will open in a new window
The cost of insurance can vary from insurer to insurer for exactly the same coverage and conditions. Make sure you shop around when buying automobile insurance!End of the insight
Documentation and tools
- Choosing Auto Insurance (pdf - 382 KB)This link will open in a new window Updated on 25 February 2013
- My First Car Insurance Policy (pdf - 1 MB)This link will open in a new window Updated on 18 July 2012
- Insurance sold by Lenders and merchants (pdf - 972 KB)This link will open in a new window Updated on 29 September 2017