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

If you opened your auto insurance renewal letter recently, you probably got a shock. Car insurance premiums in Quebec have been rising 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 the real reasons behind the premium increases, the 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 aren’t arbitrary. Several economic and structural factors have combined to create a perfect storm in the world of car insurance.

The Explosion of 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 used to cost $150 ten years ago. Today, with the integrated camera, blind spot sensor and defrosting, the bill can easily exceed $1,500 to $2,500. Multiply that by thousands of claims per year, and you quickly understand the problem.

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

Shortage of Parts and Repair Delays

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

More Accidents, More Claims

Since the end of health measures, Quebecers have returned to the roads in droves. 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.

Driver distraction (phones, 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 the middle of traffic.

Constant Increase in Vehicle Thefts

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 overseas 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 seen in Quebec in recent years:

• 2023: average increase of 8% to 12% on car 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 more significant.

The Profiles Most Affected by the Increase

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

• Young drivers (16-24 years old): statistically higher risk, their premiums were already high and continue to climb.
• Owners of popular SUVs and pickup trucks: favorite targets of thieves, these vehicles cost more 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 doomed to accept these increases without doing anything. Here are strategies that really work in Quebec:

1. Use an Insurance Broker

This is the most important advice in this article. A broker certified by the Autorité des marchés financiers (AMF) compares prices from multiple insurers for you. They know what discounts are available and can often find savings of 20% to 35% compared to what you’d 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 between 5% and 15% depending on the companies. It’s easy money.

3. Increase Your Deductible

Moving from a $250 deductible to $500 or even $1,000 can reduce your premium by 10% to 20%. Of course, 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 Flawless Driving Record

No violations, 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 discount of 5% to 10% on your premium, plus deter 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 careful 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 administration fees of 3% to 5%. By paying in one annual lump sum, you save these unnecessary fees.

9. Review Your Coverage Every Year

If your vehicle is over 10 years old and worth less than $5,000, comprehensive coverage (Chapter B) may no longer be worthwhile. Talk to your broker to adjust your coverage to the real value of your car.

10. Compare Every Year — No Exception

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

What SAAQ Covers (And What It Doesn’t)

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

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

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

Liability Insurance: The Legal Minimum in Quebec

Quebec law requires a minimum of $50,000 in liability insurance. But let’s be honest: $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 liability coverage. The difference in price between $1,000,000 and $2,000,000 coverage is often only $30 to $50 per year. It’s well worth the cost for peace of mind.

Outlook for 2026-2027: What to Expect

Industry experts agree on several trends:

• Rate increases will slow down: after years of sharp increases, the pace should moderate to 3% – 5% in 2027.
• Telematics will gain traction: more and more insurers will offer rates based on actual driving behavior.
• Electric vehicles will push 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 counter organized vehicle theft.

The Bottom Line: Don’t Accept It, Take Action

Yes, car insurance premiums are rising in Quebec. It’s a reality we all 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 rewarding action? Have your rates compared by an AMF-certified insurance broker. It costs you nothing, takes a few minutes, and can save you hundreds of dollars every 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 haven’t had any accidents?

Premiums are calculated on overall risk, not just your personal record. Increases in repair costs, a rise in vehicle thefts, and general inflation affect all policyholders. Your postal code, your vehicle model, and 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 is between $1,200 and $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 multiple insurers to find the best rate. It takes a few minutes and can easily save you $300 to $600 per year.

What is the difference between comprehensive insurance and liability insurance?

Liability insurance (Chapter A) covers damage you cause to others and their property. Comprehensive insurance (Chapter B) also covers damage to your own vehicle, including collisions, theft, vandalism, broken glass, 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 length of stay limits and coverage amounts with your broker before traveling, as some U.S. states require different liability minimums.

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

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

What should you do after a car accident in Quebec?

Ensure everyone’s safety, call 911 if necessary, exchange information with the other driver (license, insurance, registration), take photos of the scene and damage, fill out a mutual agreement form, and contact your insurer within 24 hours. Never leave the scene of an accident, even a minor one.