Auto Insurance Premium Increases in Quebec: Why You’re Paying More and How to Save
If you’ve opened your auto insurance renewal letter recently, you’ve probably had a bit of a shock. Auto 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 premium increases, concrete numbers, and proven strategies to pay less for your auto insurance — without sacrificing your coverage.
Why Auto Insurance Premiums Are Increasing in Quebec
Before you complain to 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 auto insurance.
The Explosion of Repair Costs
This is probably factor number one. 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 CA$150 ten years ago. Today, with the integrated camera, blind-spot sensor and defrosting, the bill can easily exceed CA$1,500 to CA$2,500. Multiply that by thousands of claims per year, and you quickly see the problem.
According to the Association of Quebec Automobile Insurers (GAA), the average cost of property damage claims increased by nearly 15% between 2023 and 2025 in Quebec.
Parts Scarcity 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 three weeks in the shop instead of five days, that means more replacement vehicle days, 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 en masse. More vehicles on the roads means mathematically more accidents. The SAAQ reports a constant 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 traffic.
Vehicle Thefts on the Rise
Vehicle theft has become a genuine scourge 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 theft.
Result: insurers have to compensate for vehicles worth CA$50,000 to CA$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 Increased Concretely?
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 paying CA$1,200 per year in 2022 can easily pay between CA$1,500 and CA$1,700 today for the same coverage. For a young driver or high-risk profile, increases can be even more significant.
Profiles Most Affected by Increases
Not everyone is affected the same way. Here are the profiles experiencing the steepest increases:
- Young drivers (16-24 years): statistically higher risk, their premiums were already high and continue to climb.
- Owners of popular SUVs and pickup trucks: prime theft targets, these vehicles cost more to insure.
- Montreal and Laval residents: accident and theft rates are higher in dense urban areas.
- Drivers with a claims history: even a single claim can raise your premium by 15% to 25%.
10 Concrete Strategies to Reduce Your Auto Insurance Premium
The good news is that you’re not doomed to suffer these increases without doing anything. Here are strategies that really work in Quebec:
1. Go Through an Insurance Broker
This is the most important advice in this article. A broker 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 auto insurance with your home insurance at the same insurer. The multi-product discount ranges from 5% to 15% depending on the companies. That’s easy money.
3. Increase Your Deductible
Moving from a CA$250 deductible to CA$500 or even CA$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 traffic 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 your vehicle or a GPS tracking system) can give you a 5% to 10% discount on your premium, plus deter thieves.
6. Choose Your Vehicle Intelligently
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
Many 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 discounts 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 one annual payment, you save these unnecessary fees.
9. Review Your Coverage Annually
If your vehicle is over 10 years old and worth less than CA$5,000, comprehensive coverage (Chapter B) may no longer be cost-effective. Talk to your broker to adjust your coverage to the real value of your car.
10. Compare Every Year — Without Exception
Loyalty doesn’t always pay in insurance. The best prices change from year to year. Have your prices compared by a broker each renewal. It takes 5 minutes and can save you hundreds of dollars.
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Get my free quoteWhat SAAQ Covers (and What It Doesn’t)
Many Quebecers think that the SAAQ covers everything in case of an accident. That’s a dangerous myth. Here’s what you need to know:
- SAAQ covers: bodily injuries to all Quebecers involved in a road accident (regardless of fault).
- SAAQ does NOT cover: damage to your vehicle, damage to the other person’s vehicle, property damage (fence, pole, building), or liability lawsuits.
That’s where your private insurance comes in. Without it, you’re personally responsible for all property damage — and that can easily reach hundreds of thousands of dollars.
Liability Coverage: The Legal Minimum in Quebec
Quebec law requires a minimum of CA$50,000 in liability coverage. But let’s be frank: CA$50,000 is ridiculously insufficient in 2026. A single accident involving a new vehicle and property damage can easily exceed CA$200,000.
The vast majority of brokers recommend a minimum of CA$2,000,000 in liability coverage. The difference in price between CA$1,000,000 and CA$2,000,000 coverage is often only CA$30 to CA$50 per year. It’s well worth the cost to sleep soundly.
Outlook for 2026-2027: What to Expect?
Industry experts agree on a few trends:
- Rate increases will slow: after years of steep hikes, 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: EV repair costs are 20% to 30% higher than gas vehicles.
- Anti-theft efforts will intensify: governments and insurers are investing to combat organized theft.
The Bottom Line: Don’t Suffer, Act
Yes, auto insurance premiums are rising 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’ve covered in this article, you can limit the impact on your budget.
The most impactful step? Have your prices compared by an insurance broker. It costs you nothing, takes 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 auto insurance increasing even though I’ve had no accidents?
Premiums are calculated based on overall risk, not just your personal record. Increases in repair costs, rising vehicle thefts, and general inflation affect all policyholders. Your postal code, vehicle model, and claims statistics in your region also play an important role.
What does auto insurance cost on average in Quebec in 2026?
The average premium in Quebec is between CA$1,200 and CA$1,800 per year for a driver with a good record. For a young driver or high-risk profile, it can easily exceed CA$2,500 to CA$3,500 per year. A broker can help you find the best price for your specific profile.
Is it really worth shopping my auto insurance every year?
Absolutely. Price differences 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 CA$300 to CA$600 per year.
What’s the difference between comprehensive coverage and liability insurance?
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, broken glass, and natural disasters. Liability is mandatory; Chapter B is optional but strongly recommended for recent vehicles.
How can telematics reduce my auto 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 auto insurance cover driving in the United States?
Yes, most Quebec auto insurance policies include coverage in Canada and the United States. However, verify the limits on length of stay and coverage amounts with your broker before traveling, as some U.S. states require different minimum liability limits.
What if I can’t afford my auto insurance?
Driving without insurance is illegal and extremely risky financially. If cost is a problem, 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 I 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, complete a standard accident report, and contact your insurer within 24 hours. Never leave the scene of an accident, even a minor one.
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