5 misconceptions about auto insurance
There are many common misconceptions about auto insurance, and not all are true. So let’s debunk fact from fiction.
1 - Men pay more for auto insurance than women.
TRUE and FALSE
It all depends on the age group. There’s a big difference in the cost of premiums for the 16-20 age group.
The gap narrows with each age group, with premiums almost the same for the 45-64 age group.
It’s interesting to know that the average premium directly reflects claims frequency. The greater the claims frequency, the higher the premium for collision coverage.
2 - Quebec has the lowest auto insurance rate in the country.
TRUE
Including for material damage and bodily injury, totalled $1072 in 2024*, compared to our two other provinces: Alberta and Ontario, with average premiums of $1,759 and $2,038, respectively.
*This amount includes the premium for material damage (private insurers) and the premium for bodily injury (SAAQ).
3 - I can contest my insurer’s decision to declare my vehicle a total loss.
TRUE
As a rule, your insurer declares your vehicle a total loss if the cost of repairs exceeds its value. It takes into account several factors, including the vehicle’s age, its general condition, claim-related repairs and market value.
If you disagree with your insurer’s decision, you need to document your file and negotiate a settlement with your insurer. If you can’t come to an agreement, you can also contest the insurer’s decision by arbitration or in the courts.
4 - If I hit a parked car, all I need to do is leave a note with my contact information.
FALSE.
According to the Highway Safety Code, this may be considered a hit-and-run.
If you are unable to reach the owner of the damaged vehicle, you must contact the local police station (there is no need to call 911).
Failure to do so could result in a penalty of up to 9 demerit points and a fine of $200 to $600.
A simple phone call could save you from many of these consequences.
5 - My vehicle will automatically be repaired with new parts.
FALSE
Under the standard auto insurance policy, recycled parts are used to repair vehicles.
To have your vehicle repaired with new parts, you must have purchased one of the following coverages:
-
"Replacement cost" endorsement (Q.E.F. No. 43 – Change to indemnity – Option 43A – Partial loss – new parts)
-
Replacement insurance (Q.P.F. No. 5)
If you didn’t purchase either coverage, you can still have your vehicle repaired with new OEM parts by paying the price difference between the recycled parts and the OEM parts.
One exception: a windshield is always replaced with a new part.
