Alvaro Sewa Adjevi Neglokpe, M. Sc.

How to choose the right car insurance policy?

To legally drive in Quebec, car insurance is a must. But how do you choose the right policy? Here are three simple steps to find out.

Step 1: Figure out what coverage you need

To better understand your insurance needs, some factors to consider include the type of vehicle you drive, your driving habits and where you park your car.

  • Vehicle type. The characteristics of your vehicle, such as the year and the make, have a major impact on your insurance premium. The cost of repairs varies according to these factors — as does the cost of a claim.
  • Driving habits. This refers to the number of kilometres you drive each year. Generally, someone who only drives on the weekends to run errands will have a different policy from someone who uses their vehicle extensively for personal reasons.
  • Where you park. The risk of accidents and theft is higher in some regions than in others. Take Montréal, for example, where accidents occur much more frequently than they do in more remote regions like Bas-Saint-Laurent.

Step 2: Choose the right coverage and deductible

There are three coverage options for your car: civil liability coverage, full coverage (sections B2 and B3) and coverage against perils other than collision or upset.

  • Civil liability. This type of basic coverage is mandatory in Quebec. It only covers bodily injury and property damage accidentally caused to others by the insured. In Quebec, drivers must hold a civil liability insurance policy of at least $50,000.
  • Full coverage (sections B2 and B3). In addition to civil liability, this insurance covers damage caused by a collision or upset, as well as damage due to fire, theft, vandalism or glass breakage.
  • Partial coverage, or coverage against perils other than collision or upset. This insurance covers damage due to fire, theft, vandalism or broken glass that is not caused by a collision or upset.

To add extra coverage to your car insurance policy and better protect your vehicle, insurers also offer additional coverage options known as endorsements. Here are a few that often show up in policies:

  • QEF 27A: covers damage to vehicles that are rented or borrowed.
  • QEF 20: covers transportation and car rental costs in the event of an accident.
  • QEF 33: covers roadside assistance and towing.
  • QEF 43A: covers the replacement cost in the event of a partial loss.
  • QEF 43D: waiver of depreciation in the event of a total loss.
  • QEF 43E: covers the replacement cost in the event of a total loss.

Step 3: Compare quotes

By now, you have all the information you need to make the right choice for your needs. You can compare policies by looking at the coverage offered or the deductible. While some people opt for a higher deductible to save on their insurance premium, this approach has its risks. If you get into an accident, you may not receive compensation if the repair cost is lower than the deductible.

In conclusion, to select the right car insurance policy, you should identify your needs, choose the right coverage, compare quotes, and take out the policy through your broker. Of course, your broker is your greatest ally when it comes to getting advice and learning more about the various coverage options. Don’t hesitate to contact us!

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Alvaro Sewa Adjevi Neglokpe, M. Sc. Damage Insurance Broker See the profile

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