The Different types of car insurance

For most people, talking about insurance isn’t exactly exciting. At Fort, as surprising as it may sound, it’s our passion. So buckle up—we’re about to break down the different types of car insurance with all the enthusiasm in the world.

Even if the topic makes you itch, knowing the different types of car insurance is essential for every driver. And lucky you—figuring out what kind of car insurance you need in Quebec is actually pretty simple!

It’s so simple, in fact, that it all comes down to two main categories: civil liability and damage to your own vehicle.

Understanding them better will help answer those classic questions like: “Do I need coverage on both sides?”, “Is car insurance mandatory?”, and “How do I know which type of auto insurance is right for me?”.

Feel like you’ve asked these yourself? Then keep reading—this is for you. 

Civil Liability in Car  Insurance

Ever heard of “mandatory car insurance in Quebec”? No, it’s not an urban legend. It refers to civil liability coverage (Chapter A of the F.P.Q.), which is indeed mandatory in our province.

Every Quebec driver, without exception, is required to carry it with a minimum coverage amount of $50,000. But what does it actually cover? Civil liability insurance protects you in the following situations:

• Bodily Injury Caused to Others with Your Vehicle
  This coverage compensates for various types of injuries and bodily harm. For instance, if you hit a cyclist or a pedestrian with your car, your civil liability insurance will cover the costs.
• Property Damage Caused to Others with Your Vehicle
  You damage your neighbor’s landscaping while backing up. You hit and break a commercial sign. You accidentally run over your sister’s backpack—with her brand-new laptop inside. These are all examples of situations where civil liability coverage kicks in.

Why ask for a coverage higher than the minimum liability value ($50,000)?

In fact, liability can go up to 1 or 2 million dollars. Quite a significant gap from the minimum value, right? In reality, this difference is far from exaggerated. Especially if you’re traveling to the United States, where your liability coverage remains valid.

Imagine causing property damage with your car at a tourist destination. Not only will you have to pay for the repair, but you may also face a lawsuit (which is not uncommon among our American cousins!).

Add to that the exchange rate difference, and you have a hefty bill that could easily exceed $50,000 (which seemed more than enough up until now).

Damage to your own vehicle

With one of the types of car insurance offered in this category (Chapter B of the F.P.Q.), you’re “covered on both sides.” On one hand, civil liability protects you when your vehicle causes damage. On the other, you’re covered for damage to your own vehicle.

Several options are available, including:

Collision and Upset Risks

This coverage is essential to protect your vehicle if you’re responsible for an accident involving a collision or a rollover. It applies in situations such as:

• Colliding with a person or an animal
  
• Colliding with another vehicle
  
• Colliding with an object or the ground
  
• Being the victim of a hit-and-run
  
• Your vehicle rolling over

If you commute to work downtown every day, for example, this coverage could really come in handy!

All Risks Except Collision and Rollovers

It’s simple: this protection covers damage or loss to your vehicle that isn’t related to a collision (except, oddly enough, in the case of a collision with an animal) or a rollover.

Among other things, this type of insurance covers you in case of:

• Severe weather (hail, wind, etc.)
  
• Theft, fire, or vandalism
  
• Broken windows
  
• Falling objects hitting your car

All Risk Coverage

As the name suggests, this insurance protects you against all risks. More specifically, it covers you for everything included in the two types of car insurance mentioned above.

It’s the most comprehensive option out there. But do you really need it? A car insurance broker can help guide you toward the best solution.

Specified Risks

While this is the least comprehensive coverage, it can still be relevant for certain drivers. It protects you against specific risks.

For example, if it’s clear that the only real risk you face is fire, this option might be better suited to your needs than full all-perils coverage.

Additional Coverage Options

By building on the basic protections described above, additional coverage options enhance your policy.

Most car insurance companies will offer them. But be careful—they might not all be necessary for you! Our brokers will explain what each one includes and help identify the ones that could truly benefit you, such as:

Replacement cost or Actual Cash Value

The replacement cost or actual cash value endorsements protect you against:

• The depreciation of your car’s value
  
• The depreciation of replacement parts

Accident Benefits

Personal insurance can compensate you in cases such as death, dismemberment, or total disability resulting from a car accident.

Travel Expenses

You’re away from home and a covered loss prevents you from getting back? This endorsement covers the cost of renting a car, taking a taxi, or using another alternative means of transportation.

But that’s not all! It also reimburses you for the expenses needed to continue your trip—such as accommodation, meals, and personal belongings.

Roadside Assistance

Here’s an add-on to your auto insurance that can save you a lot of headaches. Roadside assistance is a support service that comes to your rescue in emergency situations—like a mechanical breakdown, a flat tire, and more.

Making It All Clear

As you’ve seen, understanding the different types of auto insurance available in Quebec isn’t rocket science. Still, calling around, comparing prices, and analyzing policies can easily become one task too many in your already packed schedule.

Join the many who’ve chosen to work with an insurance broker. Their expertise will help you find a product that’s 100% tailored to your situation and your budget. Bonus: they’ll handle the calls and follow-ups for you!

Got questions? Talk to a car insurance broker today.

Talk with an expert