When you buy a car; you should always think about insurance. And this is not the only paperwork you need to think about, always check if all your papers are in order.

How do you know if you are properly insured?

In Quebec, all vehicle owners must have automobile insurance. The owner is required to carry at least third party liability insurance.

Two auto insurance plans operate together in Quebec.

1. The public plan which is attached to the “Société d'assurance automobile au Québec” (SAAQ). It covers bodily injuries resulting from a traffic accident. You are attached to this plan when you pay for your license.
2. The private plan, which is attached to insurance companies. It covers property damage to the vehicle and civil liability.

The law on automobile insurance requires that you subscribe to a private insurance that will cover your civil liability (Chapter A), commonly called "insurance of an edge, for a minimum of 50 000$. This portion of insurance will be used to cover:

• Damage to your vehicle in a collision in Quebec for which you are not at fault.
• Property damage caused to others with your automobile (e.g., while backing out of your driveway, you damage your neighbor's fence).
• Injuries and other bodily harm caused to another person, and which are not covered by the SAAQ or other public plan.

However, it is rare to see such a low amount for civil liability because this amount will not be sufficient in case of a lawsuit in the United States or elsewhere than in Quebec. Normally the amount of civil liability is between 1 and 2 million.

The civil liability is a basic insurance. You can protect your vehicle from vandalism, theft and weather damage (hail, snow, etc.) by subscribing Chapter B, commonly known as "two-rider insurance".

- Damage to your vehicle in the event of a collision with a vehicle or in the event of a rollover, even when you are at fault;

- Damage caused without a collision (for example: fire, hail, flood, vandalism, theft of the vehicle);

- All-risk coverage, which covers all damages to your automobile except those excluded in the contract;

- Specific risks. These are specific risks specified in your policy, such as an explosion or an earthquake.

You can also purchase endorsements, which are additional coverage for a fee. Your broker or insurer will be happy to help you choose the right insurance for your needs.

What are the elements to consider?

● Equipping your vehicle with an anti-theft device including a tracking system (GPS), alarm system, immobilizer and many others can help lower your insurance premium.

● Premiums are based on many factors such as age, gender, type of vehicle, where you live, your driving record and more.

● Subscribing auto insurance means buying insurance. Auto insurance covers the vehicle and those who drive it. The driver is the primary user of the vehicle. He or she is the first person responsible, in case of an accident. To be valid your insurance policy must be up to date as well as the driver's license. The certificate issued by the technical controllers completes your papers.

● Be informed of the amount of your deductible that will be payable if you have an at-fault accident. However, if you are not at fault, you will not have to pay a deductible.

● Be truthful in your statements. A false statement will result in the breach or cancellation of your insurance contract. Properly inform your insurer of the use of the vehicle. An omission of information can cause an understatement of claim or no claim.

● The golden rule is to drive with caution to ensure your safety, but also the safety of others.

● For vacation or out-of-territory trips, always notify your insurer to increase deductibles.

If I want to break my contract?

This is the termination of the contract. You can cancel your insurance contract at any time and for any reason. This must be done in writing to notify your insurer. However, a penalty would be imposed on you depending on the expiry date of your insurance contract.

Can the Insurer cancel my insurance contract?

Yes, your insurance contract can be cancelled by the insurer within the first 60 days by written notice. After this period, the insurer cannot cancel your insurance unless you are in default of payment or your risk has significantly increased. Any cancellation by the insurer must always be in writing.

Choosing a good insurer is just as important as choosing a vehicle, so take the time to get the facts before you decide.

If you do not agree with a decision made by your insurer, you should contact the “Autorité des Marchés Financiers” (AMF) or authority of the financial markets.