The Big Insurance Myths in Quebec: Truths and Misconceptions Debunked
Insurance is one of those fields where misconceptions are the most persistent — and the most expensive. Myths that have circulated for decades around the water cooler and on social media end up influencing major financial decisions. The result? People who under-insure their home because they think “insurance covers everything anyway,” drivers who stick with a mediocre insurer because they believe they’ll “lose their discounts” by switching, or homeowners paying unnecessarily high premiums based on false beliefs.
In this guide, we review the 15 biggest insurance myths in Quebec — covering both auto insurance and home insurance — and establish the truth behind each one, with concrete examples from the Quebec market. Ready to be surprised?
Myths About Auto Insurance in Quebec
“A red car costs more to insure”
This is probably the most widespread insurance myth in Canada. Many people are genuinely convinced that red cars — associated with speed and sporty driving — are priced differently by insurers.
“If I drive carefully, I don’t need comprehensive coverage”
The logic seems airtight: if you never have accidents, why pay for comprehensive coverage? Many responsible drivers reduce their coverage based on the assumption that their carefulness protects them.
“If I switch insurers, I lose my loyalty discount”
This myth keeps thousands of Quebecers with insurers who no longer offer them the best rates. Fear of “losing” something prevents them from shopping around for insurance.
“SAAQ covers me for everything in case of an accident”
Some drivers think their annual SAAQ payment is enough to protect them against all consequences of an auto accident.
“My insurance rate automatically goes up if I have a no-fault accident”
Many drivers hesitate to file a claim after an accident they didn’t cause, fearing their premium will increase anyway.
“A newer vehicle always costs more to insure”
The intuition suggests that a more expensive vehicle to buy will be more expensive to insure. That’s often true — but not always.
Stop Overpaying Due to Myths
A certified AccesDirect broker analyzes your file and finds the best coverage at fair prices. Free, no obligation.
Get My Free QuoteMyths About Home Insurance in Quebec
“My home insurance covers all types of damage”
This is one of the most dangerous myths. Homeowners think they have “all-risk insurance” and that everything that can happen to their home is covered.
“My home’s market value = the amount I should insure it for”
Many homeowners believe they should insure their home at its market value in the real estate market.
“The contents of my home don’t have much value — insurance isn’t necessary”
Renters especially, but also homeowners, systematically underestimate the value of their belongings.
“If I do renovations, it doesn’t change my insurance”
Some homeowners add extensions, modernize their kitchen, add a pool, or finish their basement without notifying their insurer.
“Sewer backups are automatically covered”
All types of water damage are often confused, and homeowners assume their home insurance covers all water-related incidents.
“A lower premium means a better deal”
Looking for savings, some consumers systematically choose the lowest premium without examining what it actually covers.
“My pool is automatically covered by my home insurance”
Pool owners often assume their above-ground or in-ground pool is included in their standard policy.
“My home office is covered by my home insurance”
With the explosion of remote work, thousands of Quebecers have set up home offices with expensive professional equipment — computers, monitors, specialized equipment.
“I don’t need insurance if I’m a renter”
Many renters believe that the landlord bears all responsibility for insurance.
Is Your Coverage Up to Reality?
A certified AccesDirect broker reviews your current policies and identifies gaps. Free, no obligation, online.
Analyze My Coverage NowSummary Table: 15 Myths, 15 Truths
| # | The Myth | The Truth in Brief |
|---|---|---|
| 1 | Red car = higher premium | Color never enters the calculation |
| 2 | Good driving = minimal insurance is enough | Risks outside your control (hail, theft) don’t depend on you |
| 3 | Switching insurers = lose benefits | Your record follows you everywhere |
| 4 | SAAQ covers everything after an accident | SAAQ covers injuries, not property damage |
| 5 | No-fault accident = automatic rate increase | In principle no, but check your contract |
| 6 | Newer vehicle = always more expensive to insure | Depends on model and its claims statistics |
| 7 | Home insurance covers everything | Important exclusions (sewer, flooding…) |
| 8 | Insure based on market value | Insure based on reconstruction cost |
| 9 | My contents aren’t worth much | Actual value: typically CA$50,000 to CA$150,000 |
| 10 | Renovations don’t change anything | Must be declared to avoid underinsurance |
| 11 | Sewer backup = automatically covered | Rider required in almost all cases |
| 12 | Lower premium = better deal | Compare coverage, not just prices |
| 13 | Pool automatically covered | Depends on type and policy — verify |
| 14 | Home office covered by home insurance | Professional equipment often excluded or limited |
| 15 | Renter = no insurance needed | Your belongings and liability aren’t covered by landlord |
How to Avoid Nasty Surprises: 5 Good Habits to Adopt
1. Read your insurance contract
It seems obvious, but the vast majority of policyholders have never read their insurance policy in full. The document isn’t designed to be leisure reading — it’s long, technical, and sometimes tedious. But this document defines exactly what is covered and what is not. Spend at least 30 minutes reviewing the exclusions and conditions sections.
2. Ask questions of your broker or representative
If any aspect of your policy is unclear, ask. Your broker or the representative from your insurer has a legal obligation — governed by the applicable regulator — to explain your contract terms. Specific questions to ask: “Is sewer backup covered?”, “What’s my coverage if I’m away more than a week in winter?”, “Is my home office covered?”
3. Review your insurance annually
Your life changes — so do your insurance needs. Buying a vehicle, major renovations, acquiring valuable items, job changes, moving, having a child — each of these events can alter your risk profile and coverage requirements. An annual review with your broker ensures your policy evolves with you.
4. Shop your insurance regularly
The insurance market is competitive and rates change year to year. An insurer that was most competitive five years ago may not be today. Comparing through an independent insurance broker is the most efficient way to ensure you’re getting a fair price — and it’s free for you.
5. Document your belongings
Record a video of each room in your home, naming and showing valuable items. Keep receipts for major purchases. Store this documentation in the cloud (Google Drive, Dropbox) so you can access it even if your home is destroyed. In case of a claim, this evidence greatly facilitates your recovery and ensures you’re compensated fairly.
The Broker’s Role: Your Ally Against Nasty Surprises
Navigating the insurance world without a competent guide exposes you to all the myths and misunderstandings we just debunked. A partner broker isn’t just a policy seller — they’re an advisor whose role is to defend your interests:
- They analyze your real situation and identify risks specific to your profile
- They compare offers from multiple insurers to find the best coverage at the best price
- They clearly explain what is covered, what is not, and why
- They identify necessary riders you might not have asked for
- They support you during claims to ensure you’re treated fairly
Reliable official resources for insurance in Quebec include the applicable regulator — the regulatory body overseeing all insurers and brokers in Quebec — and the Canadian Insurance Bureau, which publishes practical guides for consumers.
FAQ — Insurance Myths in Quebec
Is it true that paying my premium monthly is much more expensive than annually?
Yes, generally. Monthly payment involves financing or administrative fees that typically represent 5% to 10% of the annual amount. On a CA$1,500/year premium, that’s an extra CA$75 to CA$150 per year. If you have the financial capacity to pay in one lump sum, that’s an easy and immediate saving. Some insurers also offer bi-weekly or quarterly payment as a compromise.
True or false: insurers systematically refuse claims on large losses?
False, in the vast majority of cases. Insurers have a legal obligation to honor claims covered by your contract. Claim denials mainly happen when: the loss is explicitly excluded from the policy, you didn’t meet your obligations (maintenance, disclosures), or you made false statements during application. If you believe a denial is unjustified, you can file a complaint with the regulator or seek independent arbitration.
Does adding a secondary driver always increase the premium?
Not necessarily. Adding a secondary driver with more experience and a better record than the primary driver can actually lower the premium in some cases. However, adding a young driver or someone with a poor record will almost always increase the premium. The impact depends on the secondary driver’s profile and declared frequency of use.
Does my employer insure me if I use my personal car for work?
No, your employer doesn’t cover accidents with your personal vehicle. If you use your car for work purposes (client visits, deliveries, business travel), you must declare this to your insurer — it can affect your rate. Failing to disclose business use and having an accident on a work trip can result in a partial or complete claim denial.
If my house is old, will the insurer refuse to cover it?
Not necessarily a refusal, but conditions may be stricter. Insurers evaluate the condition of electrical, plumbing, and heating systems rather than age alone. A century-old home with updated wiring, a recent roof, and modern plumbing can be insured on the same terms as a new building. Conversely, a 20-year-old home with fused electrical panels, a 25-year-old roof, and polybutylene plumbing may be difficult to insure. Your broker can guide you on priority repairs to improve insurability.
Does a security system really reduce my home insurance premium?
Yes, in most cases — but the impact varies. A monitored security system (connected to a center that can call emergency services in your absence) typically gets a larger discount than a simple local alarm. The reduction may range from 5% to 15% depending on the insurer and system type. Smoke and carbon monoxide detectors are often mandatory to maintain coverage — not just to get a discount. Smart water leak detectors are increasingly recognized by insurers with specific discounts.
Does insurance cover theft by a family member or close friend?
Generally no. Most home insurance policies exclude theft committed by people residing in the home or with regular access to it. Theft by household members is explicitly excluded in the vast majority of contracts. For theft by outsiders (break-ins), coverage applies normally according to your policy terms (proof of forced entry, police report, etc.).
Can my auto insurance premium go down with age?
Generally yes, up to a point. Drivers between 30 and 65 years old with a good record get the best premiums. After age 70, some insurers start increasing premiums due to accident statistics associated with advanced age. The good news: an excellent driving record remains the most important factor at any age. A 72-year-old with no claims in 20 years will always get better conditions than a 35-year-old with two at-fault accidents.
True or false: moving can increase my insurance premium?
Absolutely. Your postal code is one of the important factors in calculating your auto and home insurance premiums. Dense urban areas generally have more vehicle thefts and more accidents. Flood-prone areas increase home insurance premiums. Conversely, moving to the suburbs or a region can significantly lower your premium. Always notify your insurer of any address change — it’s a contractual obligation, and failure to do so can void your coverage.
Do all brokers offer the same price for the same insurance?
No. Independent brokers work with different insurers and have access to different products and rates. A broker with access to 15 insurers will potentially find better offers than a broker limited to 3 or 4 partners. That’s why it’s recommended to use a certified independent broker who can truly compare the market for your specific profile, rather than an agent tied to a single insurer.
Verify Your Coverage Matches Reality
Brokers from our partner offices review your current policies, identify gaps, and compare the market’s best offers. Free, no obligation.
Speak to a Broker NowOne single request
Fill in one profile. We query insurers on your behalf — you never start over.
No commitment
Comparing binds you to nothing. You choose who to contact — or no one. We do not resell your phone number.
Pan-Canadian network
Auto, home, motorcycle, RV. Licensed partner brokerage firms and brokers across the country.
The best price is waiting.
Compare in 3 minutes. Choose your coverage. No forced sales calls.
