15 Myths About Car Insurance in Quebec — Truth vs Fiction in 2026

Automobile insurance is one of the sectors that generates the most myths, rumors, and misconceptions in Quebec. These false beliefs have circulated for decades — among colleagues, in families, on forums — and some are so widespread that even experienced drivers believe them to be true. The problem is that these myths can cost you real money, lead you to make bad decisions, or leave you believing you’re covered when you’re not.

The car insurance system in Quebec is unique in Canada, combining the SAAQ public regime (bodily injury) with private insurance (property damage). This duality creates an additional zone of confusion, where rules that apply in Ontario or British Columbia don’t apply here. Myths imported from elsewhere mix with local misunderstandings to create a genuine fog of misinformation.

In this article, we’ll debunk 15 of the most widespread misconceptions about car insurance in Quebec. For each one, we clearly explain the truth, the real impact on your premium and coverage, and what you should do instead. Some of these revelations could save you several hundred dollars per year.

Myth #1: Red cars cost more to insure

Fiction. This is probably the most persistent myth in car insurance — and it’s completely false. The color of a vehicle is never a pricing factor in Quebec, nor anywhere else in Canada. Insurers don’t even know the color of your car when setting your rate.

The truth: The factors that actually affect your premium are the model, year, vehicle value, loss statistics for that specific model (theft frequency, average repair cost), your driving record, your age, and your region. A red Toyota Corolla and a gray Toyota Corolla of the same model and year cost exactly the same to insure.

Myth #2: A clean driving record guarantees a low premium

Partially false. A good driving record is certainly an advantage — but it doesn’t automatically guarantee the lowest possible premium. Many other factors come into play: your region, your vehicle model, your age, your coverage, and each insurer’s specific rates.

The truth: Two drivers with identical, clean records can pay very different premiums if they live in different regions (Montreal vs Saguenay), drive different vehicles, or are insured with different companies. A clean record is a necessary condition for getting the best rate, but not sufficient — you also need to shop around.

Myth #3: If a friend borrows my car and has an accident, their insurance pays

Fiction. This is an extremely dangerous myth. In Quebec, insurance follows the vehicle, not the driver. If you lend your car and your friend has an accident, it’s your insurance that pays — not your friend’s.

The truth: By lending your car, you’re also lending your insurance. The accident will be recorded on your file. If your friend isn’t an experienced or authorized driver on your policy, your insurer could reduce their payout or even deny the claim if you didn’t disclose this user. Your friend’s insurance can serve as secondary coverage in excess, but your policy applies first.

Myth #4: SAAQ covers everything in case of an accident

Partially false. SAAQ covers bodily injuries to all Quebec residents involved in an accident — regardless of fault. It’s a remarkable social protection. But it absolutely does not cover property damage.

The truth: If you cause an accident and damage someone else’s car, SAAQ pays nothing. If your own car is damaged, SAAQ pays nothing either. Vehicle and property damage are entirely covered by private insurance. This is why private liability insurance is mandatory in Quebec, in addition to SAAQ.

Myth #5: Young drivers always pay the highest premiums

True in general, but with important nuances. Yes, drivers under 25 statistically pay more — accident data justifies this. But the reality is more nuanced.

The truth: A young driver can significantly reduce their premium by choosing a less expensive and less powerful vehicle, completing a defensive driving course, being designated a secondary driver on a parent’s vehicle (truthfully), and most importantly by shopping around — young driver rates vary enormously between insurers. A broker can find you the most favorable insurer for a specific young driver profile.

Myth #6: My car insurance automatically covers commercial use

Fiction, in most cases. If you use your personal car for work — deliveries, transporting goods, sales work with frequent client visits — your standard personal insurance may refuse a claim if the accident occurs in this context.

The truth: Standard insurance policies generally exclude commercial use. If you do delivery for platforms like DoorDash, Instacart, or transport clients (like Uber), you need a special mention or coverage. Ridesharing platforms often have their own insurance during active rides, but there are significant gray areas. Disclose your actual use to your insurer.

Myth #7: Paying monthly doesn’t cost more than paying annually

Fiction. In most cases, monthly payment costs more than annual payment — sometimes significantly.

The truth: Insurers apply administrative fees and sometimes financing charges to monthly payments. The gap varies by insurer, but generally there’s a difference of 5% to 15% between monthly and annual payment. On a $1,500 premium, that’s $75 to $225 more per year — just because of your chosen payment method.

Myth #8: Insurance rates aren’t regulated

Fiction. Insurers may seem to set their prices arbitrarily, but they don’t.

The truth: In Quebec, insurers are subject to applicable regulatory oversight. Any major rate changes must be approved or monitored. Insurers must also respect the principle of actuarial fairness — they cannot target groups in a discriminatory way not justified by loss statistics. If you believe you’re a victim of unfair pricing, you can file a complaint with the appropriate regulator.

Myth #9: An accident I’m not responsible for never increases my premium

Partially false. In theory, an accident you’re not responsible for shouldn’t penalize you. In practice, it’s more nuanced.

The truth: Most insurers have protection policies for not-at-fault accidents — your premium shouldn’t increase if you’re clearly not at fault. However, if you have multiple claims even if not at fault within a short period, some insurers may review your premium at renewal. Also, the definition of « not at fault » can vary. A 0% fault accident per the police report is different from a 25% shared fault accident.

Myth #10: Sports cars always cost the most to insure

Partially false. Body style alone isn’t the only factor — and isn’t always the most important.

The truth: Insurers base their rates on precise statistical data per vehicle model: accident frequency and cost, theft frequency, parts and labor costs. A Toyota Camry sedan can cost more to insure than a Mazda MX-5 (sports roadster) if that model’s loss statistics justify it. A Honda Civic Si can cost more than a Subaru Outback, even if the Outback is larger and more expensive. Always check insurance before buying a vehicle.

Myth #11: My insurance automatically covers items stolen from my car

Fiction, as a general rule. Many drivers believe that if items are stolen from their car, their car insurance will reimburse them. This is generally not the case.

The truth: Car insurance covers damage to the vehicle itself — a broken window during a theft, for example. Personal belongings inside (laptop, bag, clothes, sunglasses) are covered by your home insurance (under the personal property away from home section), not your car insurance. For valuables in your car, check the coverage limits of your home insurance.

Myth #12: Once insured, my coverage is guaranteed forever

Fiction. Your insurer has the right to cancel your policy or refuse to renew it in certain circumstances.

The truth: An insurer can cancel your policy during the term for serious reasons (misrepresentation, non-payment) or refuse to renew if your risk profile no longer matches their underwriting criteria. They must notify you in writing with adequate notice. If this happens to you, a broker can help you quickly find new coverage, even with a difficult profile — some insurers specialize in higher-risk profiles.

Myth #13: Shopping for insurance is a waste of time for young drivers

Complete fiction. On the contrary, for high-premium profiles (young drivers, poor records) the rate differences between insurers are proportionally the largest.

The truth: Some insurers specialize in insuring new drivers and offer progressive access programs with more competitive rates. Others refuse this profile outright or apply significant surcharges. A broker knows which insurers favor each profile — for a young driver, consulting a broker can make a difference of $300 to $800/year on the premium.

Myth #14: My employer’s insurance covers my personal car use for work

Fiction, in most cases. This is a myth that creates very bad surprises in case of an accident.

The truth: If you use your own car for work (client visits, deliveries, business travel), your personal insurance applies — not your employer’s. If your personal policy doesn’t cover commercial use and you have an accident on a business mission, you risk coverage denial. The solution: disclose your business use to your insurer (a mention may be sufficient) or add a business use endorsement if needed. Your employer can reimburse mileage, but you’re responsible for having the right insurance.

Myth #15: Reporting a small accident always costs more in premium than paying for it myself

Not always true. The decision to report or not report a claim depends on several factors and deserves case-by-case analysis.

The truth: Before deciding not to report a claim, evaluate: the damage amount relative to your deductible, the likely impact on your premium over the next 3 to 6 years, and whether you have accident protection (some insurers offer a « grace » for the first accident). As a general rule: if damage is close to your deductible, pay out of pocket. If damage significantly exceeds your deductible, a claim may be justified even if it affects your premium. A broker can help you do the calculation before deciding.

FAQ — Myths About Car Insurance in Quebec

Does a car’s color really affect insurance?

No. Color is absolutely never a pricing factor in car insurance in Quebec or anywhere else in Canada. This myth is completely false. Only the model, year, value, loss statistics per model, your driving record, your age, and your region matter.

Does SAAQ cover damage to my car?

No. SAAQ covers only bodily injuries in road accidents, under a no-fault regime. Property damage — to your own vehicle or a third party’s — is entirely covered by your private insurance. This is why private liability insurance is mandatory in Quebec in addition to SAAQ.

If I lend my car and there’s an accident, who pays?

Your insurance pays first. In Quebec, insurance follows the vehicle, not the driver. By lending your car, you’re also lending your insurance. The accident will be recorded on your file. The borrowing driver’s insurance can only be secondary coverage if damages exceed your limits.

Does my car insurance cover my personal items stolen from my car?

No, not your car insurance. Personal items (laptop, bag, clothes) stolen from your car are covered by your home insurance, under the « personal property away from home » section. Check the limits of this coverage in your home insurance contract.

Does car insurance cover Uber or DoorDash use?

No, not standard insurance. Commercial use (transporting people or goods for payment) isn’t covered by standard personal car insurance. Platforms like Uber have their own insurance during active rides, but there are gray areas (between rides, for example). If you do delivery or commercial ridesharing, disclose it to your insurer.

Can a young driver really save on insurance?

Yes, more than you might think. Effective strategies: choose an economical vehicle with good loss statistics, take a defensive driving course, be a secondary driver on a parent’s vehicle (honestly), and most importantly compare multiple insurers. Young driver rate gaps between insurers can exceed $800 per year.

Is insurance regulated in Quebec?

Yes. The applicable regulator supervises insurers and brokers in Quebec. Insurers must follow strict rules on pricing, fairness, and claims handling. If you have an unresolved dispute with your insurer, you can file a complaint with the regulator.

Is it better to pay your premium monthly or annually?

Annually, if your budget allows. Monthly payment usually comes with administrative or financing fees representing 5% to 15% of the annual premium. On a $1,500 premium, that can be $75 to $225 more per year. If you have available funds, annual payment is almost always more advantageous.

Does my insurance increase after a not-at-fault accident?

In principle no, for a first clearly not-at-fault accident. However, if you accumulate multiple claims even if not at fault, some insurers may review your rate at renewal. The exact definition of « not at fault » also varies by situation. A broker can help you contest an unjustified increase after a not-at-fault accident.

Must I report all accidents to my insurer?

You must report any accident where injuries occurred or damage exceeds a certain threshold (usually $2,000 depending on jurisdiction). For small fender benders with no injuries, you can choose not to report if damage is close to or below your deductible. But never reporting an accident you were required to report can be considered misrepresentation.

Can my insurer cancel my policy without reason?

No. An insurer can only cancel your policy during the term for defined legal reasons: non-payment of premium, misrepresentation, undisclosed increase in risk. For non-renewal at renewal, rules are more flexible, but the insurer must notify you 30 days in advance. You can appeal to the regulator if you believe the cancellation is unjustified.

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