Quebec has a unique setup when it comes to car insurance. While other provinces like British Columbia, Manitoba, and Saskatchewan also have public auto insurance, Quebec stands out for how it splits responsibilities between public and private insurers.
Confused by this two-part system? Not sure what you actually need to buy? Don’t worry — you’re not alone.
This article breaks down how car insurance works in Quebec, step by step. Whether you just got your license, bought your first car, moved to the province, or simply need a no-nonsense refresher, in the next few minutes, you’ll learn what’s covered automatically and what you still need to get for yourself.
How does Quebec car insurance work? Public vs. private
Quebec car insurance works through a unique two-part system where, essentially, the public insurance plan covers people (bodily injury), and private insurance covers property (vehicle and property damage).
Every Quebec resident is automatically enrolled in the public car insurance plan, known as the Société de l’assurance automobile du Québec (SAAQ), which covers injury-related costs.
However, it’s also mandatory by law to have a private car insurance policy from a licensed private insurance provider (like YouSet!) that includes at least $50,000 in third-party liability coverage.
Keep in mind, $50,000 is just the legal minimum. If you rely solely on that amount and the coverage offered by the public plan, you’ll be entirely financially responsible for any damage to your own vehicle caused by:
- Collisions with other vehicles
- Collisions with stationary objects (ex. trees, fences, street lights, etc.)
- Collisions with road hazards (ex. potholes, debris, uneven pavement, etc.)
- Hit-and-runs
- Car theft
- Weather (ex. hail, wind, ice, tornadoes, etc.)
- Vandalism
- Fire
- Falling objects
- Rental car while your vehicle is in the repair shop
- Roadside assistance
So, when buying car insurance from a private provider in Quebec, it’s strongly recommended to consider additional coverage options—especially if you’re leasing or financing your vehicle. In which case, your lender or lease agreement may require you to have higher coverage limits or additional types of coverage, such as:
- Third-party liability coverage limit up to $2 million
- Collision coverage to repair or replace your vehicle after an accident
- Comprehensive coverage for theft, vandalism, or weather-related damage
What does SAAQ insurance cover?
The purpose of Quebec’s public auto insurance, managed by the SAAQ (Société de l’assurance automobile du Québec), is to protect you financially if you’re injured or killed in a traffic accident, whether the crash happens in or outside of the province, and regardless of who was at fault.
More specifically, the SAAQ plan covers a wide range of accident-related expenses, including:
- Loss of income if you’re unable to work
- Death benefits for surviving family members
- Funeral expenses
- Chiropractic care
- Physiotherapy
- Occupational therapy
- Psychological treatment
- Dental care
- Acupuncture
- Prescription medications
- Medical supplies and devices (ex. wheelchair)
- Replacement of clothing or accessories worn at the time of the accident
- Home modifications (ex. wheelchair ramp)
- In-home care or personal assistance
Who pays for a car accident in Quebec?
In Quebec, who pays after a car accident depends on the type of damage and what coverage your private car insurance policy includes.
If you’re injured in a car accident, whether in Quebec or while driving outside the province, the SAAQ (public insurance) can help pay for things like:
- Medical treatment
- Lost income
- Rehabilitation
- Death benefits
If you accidentally cause injury or property damage to someone else in an accident, the liability portion of your private car insurance can help pay for things like:
- Legal fees
- Medical bills for the injury you caused
- Repair or replacement costs for the property you damaged
If your own vehicle is damaged, your private insurance can help pay for repairs or replacement—but only if you have the required coverage:
- Collision coverage (covers repairs or replacement from collisions with another vehicle or object)
- Comprehensive coverage (covers damage or loss from non-collision events)
However, you will have to pay out of pocket after a car accident if:
- You don’t have an active private car insurance policy
- Your own vehicle is damaged, and you don’t have collision and/or comprehensive coverage
- The cost of the damage exceeds your coverage limits
- The damage falls under an exclusion in your policy
- The damage was caused intentionally or during illegal activity
Why is car insurance so cheap in Quebec?
Car insurance in Quebec is often much cheaper than in other provinces. For example, YouSet users in Quebec pay an average of $75/month, while those in Ontario pay $220/month—more than double!
So, why is car insurance so cheap in Quebec? Because it’s split between private insurers and the government.
In Quebec, the public plan (run by the SAAQ) covers injuries, medical expenses, and death benefits after a car accident. That means private insurance providers only have to cover things like property damage and third-party liability. Less coverage means lower prices.
Of course, Quebecers still help fund the public plan—just not through their insurance bill. Instead, they contribute through driver’s licences and vehicle registration fees. For example, $92.16 out of the $118.41 Class 5 licence renewal fee in 2025 was allocated to the SAAQ’s insurance fund
So while private car insurance premiums are lower in Quebec, part of the coverage is built into the fees you pay to drive in the province, meaning that you’re still paying for coverage, just in a different way.
Next steps
Now that you know what to look for, let YouSet do the heavy lifting. In under 4 minutes, our algorithms will compare quotes from top insurers, apply exclusive discounts, and find you the best deal—automatically. Even better, we’ll monitor your price at renewal and re-shop on your behalf if it goes up, so you keep getting the best price year after year.
