Car Insurance Premium Increases in Quebec: Why You’re Paying More and How to Save

If you opened your car insurance renewal letter recently, you probably got a shock. Car insurance premiums in Quebec have been on the rise for several years, and 2026 is no exception. But why exactly? Are you paying too much? And most importantly, how can you limit the damage to your wallet?

In this article, we break down together the real reasons behind premium increases, concrete numbers, and proven strategies to pay less for your car insurance — without sacrificing your coverage.

Why car insurance premiums are increasing in Quebec

Before complaining about your insurer, you need to understand that premium increases are not arbitrary. Several economic and structural factors have combined to create a perfect storm in the world of auto insurance.

The explosion in repair costs

This is probably the number one factor. Modern vehicles are packed with technology: backup cameras, parking sensors, blind spot radars, autonomous braking systems. All this technology is great for safety, but it’s a nightmare for repair costs.

A concrete example? Replacing a simple side mirror on a recent SUV could cost $150 ten years ago. Today, with the integrated camera, blind spot sensor and defrost, the bill can easily exceed $1,500 to $2,500. Multiply that by thousands of claims per year, and you quickly see the problem.

According to the Groupement des assureurs automobiles (GAA), the average cost of collision claims increased by nearly 15% between 2023 and 2025 in Quebec.

The scarcity of parts and repair delays

Global supply chains never fully recovered from post-pandemic disruptions. Replacement parts, especially for recent vehicles, are harder to get and more expensive. When a vehicle spends 3 weeks in the shop instead of 5 days, it means more days with a rental car, more storage fees, and a total claim cost that climbs.

More accidents, more claims

Since the end of health measures, Quebecers have returned to the road in large numbers. More vehicles on the road mathematically means more accidents. The SAAQ reports a steady increase in collisions since 2022, particularly in major urban centers like Montreal, Quebec City, and Gatineau.

Distracted driving (phone, GPS, touchscreens) is also a major factor. You see it every day on Quebec highways: drivers texting at red lights or programming their GPS in heavy traffic.

Vehicle thefts on the rise

Vehicle theft has become a real plague in Quebec and Ontario. Organized networks particularly target popular SUVs and pickup trucks (Toyota Highlander, Lexus RX, Ram 1500, Ford F-150). These vehicles are often shipped abroad within hours of being stolen.

Result: insurers must compensate for vehicles worth $50,000 to $80,000, which drives up premiums for everyone — even if you drive a 2018 Civic.

General inflation and interest rates

Insurers don’t live in a bubble. Inflation also affects their operating costs: employee salaries, rents, computer systems, legal fees. Everything costs more, and these costs inevitably end up in your premium.

How much have premiums actually increased?

Let’s talk numbers. Here’s an idea of the increases observed in Quebec in recent years:

• 2023: average increase of 8% to 12% on auto premiums
• 2024: additional increase of 5% to 10%
• 2025-2026: increase of 3% to 8% depending on insurers and profiles

In concrete terms, a driver who paid $1,200 per year in 2022 can easily pay between $1,500 and $1,700 today for the same coverage. For a young driver or high-risk profile, increases can be even larger.

The profiles most affected by the increase

Not everyone is affected the same way. Here are the profiles experiencing the largest increases:

• Young drivers (16-24 years old): statistically at higher risk, their premiums were already high and continue to climb.
• Owners of popular SUVs and pickup trucks: prime theft targets, these vehicles are more expensive to insure.
• Montreal and Laval residents: the rate of accidents and thefts is higher in dense urban areas.
• Drivers with a claims history: even a single claim can cause your premium to jump 15% to 25%.

10 concrete strategies to reduce your car insurance premium

The good news is that you’re not condemned to suffer these increases without doing anything. Here are strategies that really work in Quebec:

1. Work with an insurance broker

This is the most important advice in this article. A broker compares prices from several insurers for you. He knows the available discounts and can often find savings of 20% to 35% compared to what you would pay going directly to an insurer.

2. Bundle your insurance (multi-product)

Combine your car insurance with your home insurance from the same insurer. The multi-product discount ranges from 5% to 15% depending on the companies. That’s easy money.

3. Increase your deductible

Increasing from a $250 deductible to $500 or even $1,000 can reduce your premium by 10% to 20%. Obviously, that means you pay more out of pocket in case of a claim, but if you’re a good driver, it’s often a winning bet.

4. Maintain a perfect driving record

No tickets, no at-fault accidents = better price. Some insurers offer a « good driver » discount that can reach 25% after 5 to 6 years without a claim.

5. Install an anti-theft system

An approved anti-theft device (like an Apple AirTag in the vehicle or a GPS tracking system) can give you a 5% to 10% discount on your premium, while also deterring thieves.

6. Choose your vehicle wisely

Before buying your next vehicle, check its insurance rating. A Honda CR-V costs much less to insure than a BMW X5. The least-stolen and least-expensive-to-repair vehicles are always the cheapest to insure.

7. Opt for telematics

Several insurers now offer telematics-based programs (an app on your phone that analyzes your driving habits). If you’re a cautious driver, you can get a discount of up to 25%. You have nothing to lose by trying.

8. Pay annually rather than monthly

Monthly payment often includes administrative fees of 3% to 5%. By paying in a single annual installment, you save these unnecessary fees.

9. Review your coverage each year

If your vehicle is more than 10 years old and worth less than $5,000, comprehensive coverage may no longer be worthwhile. Talk to your broker about adjusting your coverage to the actual value of your car.

10. Compare every year — no exceptions

Loyalty doesn’t always pay in insurance. The best prices change from year to year. Have your prices compared every renewal by a broker. It takes 5 minutes and can save you hundreds of dollars.

What the SAAQ covers (and what it doesn’t)

Many Quebecers think the SAAQ covers everything in case of an accident. This is a dangerous myth. Here’s what you need to know:

• The SAAQ covers: bodily injuries to all Quebecers involved in a road accident (regardless of fault).
• The SAAQ does NOT cover: damage to your vehicle, damage to the other vehicle, material damage (fence, pole, building), or civil liability lawsuits.

That’s where your private insurance comes in. Without it, you’re personally responsible for all material damages — and that can easily reach hundreds of thousands of dollars.

Civil liability: the legal minimum in Quebec

Quebec law requires a minimum of $50,000 in civil liability insurance. But let’s be frank: $50,000 is ridiculously insufficient in 2026. A single accident involving a new vehicle and property damage can easily exceed $200,000.

The vast majority of brokers recommend a minimum of $2,000,000 in civil liability. The difference in price between $1,000,000 and $2,000,000 coverage is often only $30 to $50 per year. That’s well worth it to sleep soundly.

Outlook for 2026-2027: what to expect?

Experts in the industry agree on a few trends:

• Increases will slow down: after years of strong increases, the pace should moderate to 3% – 5% in 2027.
• Telematics will gain momentum: more and more insurers will offer rates based on actual driving.
• Electric vehicles will drive some premiums up: repair costs for EVs are 20% to 30% higher than for gas vehicles.
• Anti-theft efforts will intensify: governments and insurers are investing to fight organized theft.

Final word: don’t suffer, take action

Yes, car insurance premiums are increasing in Quebec. It’s a reality we have to deal with. But you’re not powerless. By understanding the factors at play and applying the strategies we covered in this article, you can limit the impact on your budget.

The most worthwhile action? Have your prices compared by an insurance broker. It costs you nothing, takes just a few minutes, and can save you hundreds of dollars each year. At AccesDirect, we work with a network of brokers in Quebec who fight to find you the best price.

Frequently Asked Questions

Why is my car insurance increasing even though I’ve never had an accident?

Premiums are calculated based on overall risk, not just your personal record. Increases in repair costs, the rise in vehicle thefts, and general inflation affect all policyholders. Your postal code, your vehicle model, and the claims statistics in your region also play an important role.

What does car insurance cost on average in Quebec in 2026?

The average premium in Quebec ranges from $1,200 to $1,800 per year for a driver with a good record. For a young driver or high-risk profile, it can easily exceed $2,500 to $3,500 per year. A broker can help you find the best price for your specific profile.

Is it really worth shopping for car insurance every year?

Absolutely. Price gaps between insurers for the same profile can reach 30% to 50%. A broker automatically compares quotes from several insurers to find the best rate. It takes a few minutes and can easily save you $300 to $600 per year.

What’s the difference between comprehensive coverage and civil liability insurance?

Civil liability insurance (Chapter A) covers damage you cause to others and their property. Comprehensive coverage (Chapter B) also covers damage to your own vehicle, including collisions, theft, vandalism, glass breakage, and natural disasters. Liability is mandatory; Chapter B is optional but strongly recommended for recent vehicles.

How can telematics reduce my insurance premium?

Telematics uses an app on your phone to analyze your driving habits: speed, acceleration, braking, phone use while driving. If you demonstrate safe driving, you can get a discount of up to 25% on your premium. If your results aren’t good, most programs won’t penalize you.

Does my car insurance cover driving in the United States?

Yes, most Quebec auto insurance policies include coverage in Canada and the United States. However, check the stay duration limits and coverage amounts with your broker before traveling, as some U.S. states require different civil liability minimums.

What should I do if I can’t afford car insurance?

Driving without insurance is illegal and extremely risky financially. If cost is an issue, talk to a broker: he can adjust your coverage, increase your deductible, or find an insurer with more competitive rates for your profile. Some insurers also offer payment plans without additional fees.

What should I do after a car accident in Quebec?

Ensure the safety of all occupants, call 911 if necessary, exchange information with the other driver (license, insurance, registration), take photos of the scene and damage, complete a proof of loss form, and contact your insurer within 24 hours. Never leave the scene of an accident, even a minor one.

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