If you own or enter into a long-term lease for a vehicle (car, truck, motorcycle, etc.), you are required to 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..

Automobile insurance consists of two parts:

  1. Civil liability

    This part of automobile insurance is mandatory in Québec. It covers damage caused by your vehicle to another person’s property. It also covers damage to your vehicle, but only if the accident isn’t your fault, as well as bodily injury caused to other persons by an accident that occurs outside Québec. 

    This coverage is dealt with in Section A of your automobile insurance contract.

  2. Damage to your vehicle

    In Québec, you’re not required by law to have insurance covering damage to your own vehicle. However, if you borrow money to buy a vehicle or you enter into a long-term lease for a vehicle, the financing company or financial institution will likely require you to have this type of insurance.

    This coverage is dealt with in Section B of your automobile insurance contract.

    Your automobile insurer can also offer you additional protections known as “endorsements.” These endorsements are called “Q.E.F.s,” or “Québec Endorsement Forms.” Three of the most common Q.E.F.s are:

    • Q.E.F. No. 20: lets you do such things as temporarily rent a vehicle at the insurer’s expense in the event of loss.
    • Q.E.F. No. 27: provides coverage if you are liable for damage caused to a vehicle that is rented or borrowed by you for less than one year in Canada or the United States.
    • Q.E.F. No. 34: provides benefits in the event of death, dismemberment or loss of sight caused by an automobile accident.

    The replacement cost endorsement (Q.E.F No. 43) and replacement insurance (Q.P.F. No. 5) are offered to cover any loss in your vehicle’s value resulting from an accident or other covered damage. Find out about the features of these two products.

    Before entering into an automobile insurance contract, check all the protections offered 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 brokers are authorized to offer automobile insurance. In addition, damage insurance firms are authorized to offer automobile insurance via the Internet.

An automobile dealer can also, under certain conditions, offer replacement insurance 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. Make sure you shop around when buying automobile insurance!

End of the insight

Is your damage insurance representative or firm authorized to offer you an automobile insurance product?