Car insurance in Montreal

In 2021, the average car insurance cost in the province of Quebec is $898, which includes rural and less populated areas. Because there are more people living in the city of Montreal and consequently more cars on the road, the average auto insurance cost in Montreal is a little more expensive. When there are more cars on the road, there is a greater chance that you could be involved in an accident and a greater chance the insurance company will need to pay a claim to repair your vehicle.

1) Get a quote. You can get one by calling a Montreal auto insurance company or visiting their website.
2) Once you find a quote that you’re happy with, you’ll need to provide the insurance company with:

• serial number of all the cars you want to insure
• drivers license numbers of all drivers you want on your policy.
• Banking info to pay for your premium

From there, the insurance company or insurance broker will send you proof of insurance, usually through email.

Once you get the proof of insurance, you’re good to go!

As we all know, cars lose their value over time. If you’re involved in a big accident and your car is considered a total loss, your replacement cost insurance will pay you the value of your car on the day you were involved in the accident, which is often significantly lower than what you paid for the vehicle when you got it. Replacement cost insurance is a complimentary car insurance product that protects you from incurring the cost of a total loss in the event of a wreck or theft, but takes into account the diminishing value of your car. It also refunds a portion of your deductible and provides a courtesy vehicle for you to drive while you shop to replace your car!

Liability coverage protects you from being held financially responsible for damage you cause to other people’s property. It is the basis of car insurance contracts. When we’re talking about: “liability” in vehicle insurance, we’re talking about the damage your car may cause to other people’s property only, not any bodily injury. In the province of Quebec, bodily injury is covered by the Société de l’assurance automobile du Québec (SAAQ). This is known as ‘no-fault’ insurance. As a Quebec driver, you pay for this through your license registration fee. At KBD, our standard is to give $2 million in liability insurance.

Also known as B3 coverage on your insurance contract; comprehensive protects your vehicle from:

• Fire
• Theft
• Vandalism
• Glass breakage
• Falling objects
• Natural disasters
• Damage done to your car by animals

If your vehicle suffers damage from any of these perils, your comprehensive insurance will provide cover. For the coverage to be fully applied, you will need to pay your deductible.

“Two-way” insurance is when you have both collision (B2) and comprehensive (B3) included in your policy, along with liability. “One-way” coverage includes liability only.

The decision to insure your car one-way or two-way depends on a few different factors:

1. If your vehicle is being leased or financed, you need two-way coverage to protect both you and your finance / lease company. Usually, the finance / lease company will not let you leave with your car until they have proof and/or confirmation that the car is insured two-way.
2. If the value of your car is important to you but you don’t have the means to repair or replace a damaged vehicle, two-way insurance is the way to go. At KBD, we suggest two-way coverage on all cars less than 10 years old and/or with a value of more than $5,000.
3. If you’re on a budget or driving a low-value car, you might consider one-way insurance. If you do, keep in mind that your insurance contract won’t cover as many incidents.

Liability insurance is required by law on all Quebec car insurance policies. The minimum amount required in Quebec is $50,000, but that is far from standard practice across Canada. The minimum amount varies from province to province, but rest assured, if you have less than the minimum amount required by law while driving in another province, your liability amount will automatically bump up to that province’s minimum amount to protect you while driving there.

It’s important to understand that unlike a cell phone or internet plan, Montreal car insurance rates vary from one person to another.

Why?

Because no two people are exactly the same and neither are their cars. When calculating your car insurance rate, insurance companies assess the physical risk (your car) and the moral risk (you) before coming up with a price.
The physical risks they assess:

• Year of the car
• Make (brand) of the car
• Model of the car
• Value of the car

The moral risks they assess:

• Your age
• Your sex
• Your postal code
• Your credit score
• Your driving history
• Your accident history

Modern car insurance brokers, like KBD, can shop between different companies to find the best coverage at the best price. In less than 5 minutes, you can compare prices from multiple companies. You will still need to speak with an insurance professional to finalize your contract. Other ways to shop online are by visiting websites like:

• Desjardins
• Belair
• Beneva

No-fault car insurance refers to situations where the cause of an accident doesn’t affect compensation. In Layman’s terms, you cannot be sued for causing bodily injury to another person as a result of a car accident you’re responsible for. In Quebec, it refers specifically to a car accident in which a person is injured. Unlike in the USA or other provinces in Canada, car insurance policy holders cannot be sued for any injury or physical harm caused to another Quebec driver as the result of a vehicle accident. The Société de l’Assurance Automobile du Québec (SAAQ) covers this through the registration fee of your driver’s license, so as far as insurance is concerned, it doesn’t matter who was at fault in these types of accidents. This is part of the reason Montreal car insurance prices are among the lowest in the country.

If you’ve been cancelled for non-payment in the past, don’t worry, you’re still insurable! KBD offers car insurance for clients who have had payment issues in the past; it’s provided through Intact Insurance.

Getting a car insurance quote online is a quick and simple process. Most insurance companies offer quotes online and want to make the user experience as pain-free as possible. You can do a quote online in less than 3 minutes, though these quotes are not always 100% accurate. Some insurance companies offer the option to answer more questions to get a more accurate quote, but these usually take 5-10 minutes.

There are many companies that offer cheap auto insurance rates, but your price depends entirely on your specific situation. Unfortunately, insurance is not priced the same way as a cell phone or internet plan. Each company has their ‘target market’ and ‘appetite’ for different situations and risk profiles, which is why you might get different prices from different companies.

The average cost for auto insurance in Quebec is $898 +tax. The amount you should be paying for car insurance depends on a few different factors:

• Newer vehicles are more expensive to insure than used vehicles.
• Financed or leased vehicles are more expensive than vehicles you own outright.
• Two-way coverage is more expensive than one-way coverage.
• Customers with many accidents or claims on their record pay more than accident-free customers.
• Customers with lower credit scores pay more than customers with higher credit scores.
• Customers who have been cancelled for non-payment in the past pay more than customers that have never had payment problems.
• Customers on the island of Montreal pay more than customers in rural areas.

By taking these factors into consideration, you should be able to determine if your price should be higher or lower than the average price of $898 per year.

The first thing to understand about cancelling your car insurance is that your contract is annual even if you pay for it monthly. For this reason, when you cancel your insurance early, you’re technically breaking a contract, which means you’ll have to pay cancellation fees — usually the equivalent of 1 month worth of premium. To avoid cancellation fees, it’s always best to switch insurance companies at the end of your term, before renewing your contract. When you do need to cancel in the middle of a contract, your insurance company will require a written request – an email is usually sufficient. When simply choosing not to renew your insurance policy, a phone call to your insurance company will suffice.

Also known as “B2” coverage on your insurance contract, collision auto insurance coverage protects you in the event of damage to your car due to a car accident for which you are responsible. Typically, these crashes involve another vehicle, a building, an animal or simply a loss of control. It also covers you if you’re the victim of a hit and run. For the coverage to be fully applied, you will need to pay your deductible.

Car insurance companies in Montreal are going digital and are using telematics technology programs to customize prices based on a customer’s driving habits and patterns. Most insurance carriers offer incentives and rebates to participate in these programs, which are all offered through mobile applications. The technology collects data on:

• How fast you accelerate
• How hard you break
• How you follow speed limits
• What time of day/night you drive
• How much you use your cell phone while driving

Your insurance price may increase or decrease based on this data. Consider that this is the first time in the history of auto insurance where the consumer can be in control of how much they pay!

A deductible is a predetermined dollar amount that the consumer has agreed to pay toward each repair before their insurance money kicks in. For example, if you’ve agreed to a $500 deductible and your car suffers $1200 in damages, you’ll pay the deductible amount ($500) up front and your automobile insurance company will pay you the remaining $700. Insurance was not designed to be a maintenance package for small damages – that’s part of being a car owner. Without a deductible, consumers would make claims for any and every small damage their vehicle has. Before making an insurance claim, it’s important to consider what portion of the cost your deductible covers to determine whether it’s actually worth submitting. Remember that every claim you make remains on your record for 6 years and affects your insurance rate. Pro tip: if the damages cost less than twice the amount of your deductible, don’t claim it with insurance — save yourself the black mark on your resume and pay for the repair out of your pocket.

There are 5 main ways you bring down your Montreal car insurance cost:

1. Don’t make small claims – If you have 3 or more claims in 5 years, you will have a very difficult time finding affordable insurance.
2. Raise your deductibles – The more you’re willing to pay out of pocket to have repairs done, the less expensive your car insurance will be.
3. Bundle your car & home insurance – Whether you rent or own, you can save a significant amount by combining car and residential Insurance.
4. Sign up for car insurance telematics
5. Consider buying one-way coverage – It saves money, but be aware of the coverage and protections you’re missing out on.

Today, almost every car insurance company has a quoting system on its website. Typically, you’ll answer 5-6 questions to determine a price, but be advised that the price you receive may not be 100% accurate, considering it only took 3 minutes to get. Some companies provide the option of a much more detailed quote if you’re willing to answer more questions and give more of your time.

Your car insurance rate is 100% reflective of your postal code. Insurance companies come up with prices based on statistics and probabilities. If a certain postal code has a higher population than another, its rate will be higher. More people living in one area means more chance for accidents. More accidents means more claims to pay for the insurance company. Another factor is the number of vehicles stolen in one postal code versus another.

Unlike a cell phone or internet plan, finding the best car insurance in Montreal is personal and you will need to do some shopping. You can do so by visiting a website like kbdinsurance.com where you will complete a quote online and be able to compare prices and coverages from 3 different carriers. You can also visit other insurance companies’ websites and get quotes directly with them. Lastly, you can call insurance companies and get quotes over the phone. The key to finding the best car insurance in Montreal is to shop and find what is best for you.

Yes. While a driver is ‘on-the-clock’ for Uber, they’re covered by Uber’s commercial fleet insurance policy. While an Uber driver is ‘off-the-clock’ and driving for personal use, KBD can insure the car with Intact.