Car insurance in Montreal costs between $800 and $2,000+ annually for most drivers in this year, depending on age, driving record, and coverage level.
The average Montreal driver with a clean record and standard coverage pays approximately $1,200 to $1,500 per year. Young drivers under 25 can expect premiums of $2,300 to $3,000 or higher.
Quebec maintains the lowest average car insurance premiums in Canada due to its unique public-private hybrid system. However, Montreal drivers pay more than the provincial average because of higher traffic density, accident frequency, and theft rates.
This guide explains how car insurance works in Quebec, what affects your premium, and how Qubit Insurance, an AMF-certified insurance broker in Montreal, helps you find the best coverage at the lowest cost.
What is Car Insurance in Quebec?
Car insurance in Quebec is mandatory coverage that protects you financially if you cause damage to property or if your own vehicle is damaged. Unlike most other provinces, Quebec splits auto insurance into public and private components. This structure affects both the amount you pay and the way your claims are handled.
Mandatory vs. Optional Coverage
Mandatory Coverage: Every vehicle owner in Quebec must purchase civil liability insurance from a private insurer. This coverage pays for damage you cause to other people’s property and covers bodily injury claims if you have an accident outside Quebec.
Optional Coverage: Coverage for damage to your own vehicle is optional in Quebec. This includes collision coverage (damage from accidents), comprehensive coverage (theft, fire, vandalism, weather), and various endorsements that enhance your protection.
Quebec's No-Fault Bodily Injury System
Quebec operates a no-fault system for bodily injuries from car accidents. This means you cannot sue another driver for personal injuries sustained in an accident in Quebec, regardless of who caused the collision. Instead, the public insurer, the SAAQ, handles all bodily injury claims. This system reduces litigation costs and helps keep private insurance premiums lower than in other provinces.
How Quebec's Two-Tier Insurance System Works
Quebec is the only Canadian province with a public-private hybrid auto insurance system. Understanding this structure is essential because your total annual cost includes both public fees and private insurance premiums.
SAAQ Public Coverage (Bodily Injury Protection)
The Société de l’assurance automobile du Québec (SAAQ) is Quebec’s public automobile insurance corporation. The SAAQ provides mandatory no-fault bodily injury coverage for all Quebec residents who are injured in car accidents. Under this plan, the SAAQ compensates medical expenses, rehabilitation costs, income replacement benefits, and death benefits regardless of who caused the accident.
You pay for SAAQ coverage through the insurance contribution built into your annual vehicle registration fees and driver’s licence renewal. In 2026, a Class 5 driver’s licence renewal costs approximately $50.23 for drivers with no demerit points. This amount reflects a 75% rebate on the insurance contribution portion of the fee; without this rebate, the total cost would be approximately $121. Vehicle registration fees vary by vehicle type and weight and include a separate insurance contribution.
SAAQ bodily injury coverage applies to all Quebec residents injured in automobile accidents in Quebec and elsewhere in the world. The SAAQ pays compensation for private health care related to accident injuries, income replacement if you cannot work, and death benefits for surviving family members.
SAAQ bodily injury coverage does not cover property damage or damage to your vehicle. If you drive outside Quebec and are injured, the SAAQ still provides no-fault injury coverage, but your private insurance civil liability coverage handles bodily injury claims and property damage according to the laws of that jurisdiction.
Private Insurance Coverage (Civil Liability and Physical Damage)
Civil liability insurance (also called third-party liability or Section A) is mandatory in Quebec. It covers damage your vehicle causes to other people’s property. If you hit another car, damage a fence, or destroy someone’s property in an accident, this coverage pays for repairs or replacement.
It also applies if you have an accident outside Quebec and are responsible for property damage. Quebec’s Automobile Insurance Act requires that you carry liability insurance from a private insurer that covers at least $50,000 in civil liability for property damage and bodily injury outside of what the public plan covers.
Minimum Requirement: Quebec law requires a minimum of $50,000 in civil liability coverage for private passenger vehicles. This amount meets the legal requirement but may not cover large claims in serious accidents. Most insurers and brokers recommend $1,000,000 to $2,000,000 in civil liability coverage to better protect you from financial risk, and many drivers carry these higher limits.
Physical damage coverage (Section B) is optional and protects your own vehicle. It includes:
Collision Coverage: Pays to repair or replace your vehicle if you hit another vehicle, strike an object, or roll over, regardless of fault.
Comprehensive Coverage: Pays for non-collision losses including theft, fire, vandalism, falling objects, hail, flooding, and broken glass. Many drivers add comprehensive coverage because the SAAQ public plan does not cover damage to vehicles or property.
Car Insurance Cost Breakdown for Montreal (Estimates)
These estimates reflect only private insurance premiums. Add SAAQ registration and licence fees for your total yearly cost.
1. Estimated Annual Premiums by Age Group
- 18–24 (young drivers): roughly $2,300 – $3,000+ (urban higher risk)
- 25–29: about $1,400 – $1,800 (clean record) (estimate)
- 30–39: around $1,100 – $1,400 (standard driver)
- 40–49: around $900 – $1,200
- 50–59: around $800 – $1,100
- 60–69: about $850 – $1,150
- 70+: about $950 – $1,300
Note: These figures reflect typical industry quote patterns for Montreal, where urban risk (claims frequency and theft) pushes rates above provincial averages.
2. Estimated Annual Premiums by Coverage Level
(Assumes a 35–50 year-old with a clean driving record)
- Liability only ($1M minimum): $450 – $650
- Liability + comprehensive: $650 – $850
- Full coverage (liability + collision + comprehensive): $900 – $1,400
- Full coverage with Q.E.F. No. 43 (replacement cost): $1,100 – $1,800
Note: These ranges align with general market patterns for private insurers, where higher coverage and replacement cost add significantly to premium. Exact numbers vary by provider.
3. Estimated Annual Premiums by Driver Profile
- Clean record, experienced driver (35–50): $900 – $1,200
- One at-fault accident (past 3 years): $1,300 – $1,800
- Multiple violations or accidents: $2,000 – $3,500+
- New driver (first year licensed): $2,500 – $3,500
- Student driver (good grades discount): $2,000 – $2,500
Note: These ranges reflect how risk factors change pricing. Younger/less experienced drivers and those with incidents pay markedly more.
Montreal-Specific Factors Affecting Car Insurance Costs
Montreal drivers pay higher premiums than the Quebec provincial average due to several urban risk factors.
1. Higher Accident Frequency
The Montreal Urban Community has the highest frequency of claims in Quebec, with approximately 11% to 12% of insured vehicles having a claim in a given year. Dense traffic on highways 15, 20, 40, and Route 136 (Ville-Marie Expressway), combined with congested urban streets, increases collision risk compared to suburban and rural areas.
2. Elevated Vehicle Theft Rates
Montreal is a major hub for organized vehicle theft due to its proximity to the Port of Montreal, where stolen vehicles are shipped overseas. Certain vehicle models are targeted more frequently. Higher theft risk increases your comprehensive insurance premium, and some insurers may require anti-theft devices for high-risk vehicles.
3. Postal Code Rating Territories
Insurers divide the Montreal area into rating territories based on historical claims data. Your home address directly affects your premium because it indicates the statistical risk of accidents, theft, and vandalism in your neighbourhood. Insurers use this data along with other risk factors to help set pricing in each territory.
Areas with high traffic density and frequent claims, such as downtown Montreal and parts of the North Shore and South Shore (including Brossard and Longueuil), tend to have higher premiums.
Some West Island communities and outer suburban areas may have slightly lower rates, though they still tend to be higher than rates in rural Quebec.
4. Montreal Metropolitan Community (CMM) Tax
Residents of the 82 municipalities within the Greater Montreal area pay an additional $59 annual vehicle registration tax collected by the SAAQ on behalf of the regional transit authority (ARTM). While this is not an insurance cost, it adds to your total annual vehicle ownership expenses.
5. Quebec Provincial Insurance Tax
Quebec applies a 9% non-refundable tax on all private insurance premiums in 2026. This rate increases to 9.975% effective January 1, 2027. When comparing quotes, confirm whether the quoted price includes this tax or if it will be added separately.
Factors That Affect Your Car Insurance Premium
Understanding what affects your premium helps you make decisions that can reduce your insurance costs.
1. Age and Driving Experience
Young drivers under 25 pay significantly higher premiums because statistics show they are more likely to be involved in accidents. Premiums decrease steadily from age 18 through the 50s, then may increase slightly for drivers over 65. Drivers aged 35-55 typically pay the lowest rates.
2. Driving Record
Your driving record is one of the most important factors in determining your premium. At-fault accidents, traffic convictions, and licence suspensions increase premiums significantly. A single at-fault accident can increase your premium by 25% to 50% for several years. Multiple violations or accidents can make coverage difficult to obtain at standard rates.
3. Vehicle Type and Value
The vehicle you drive significantly affects your premium. Factors include purchase price (more expensive cars cost more to repair or replace), safety ratings (safer cars may qualify for discounts), theft rates (frequently stolen models cost more to insure), repair costs (vehicles with expensive parts cost more to insure), and engine size (high-performance vehicles cost more).
4. Annual Kilometres Driven
Higher annual mileage increases your exposure to accidents, raising your premium. Drivers who commute long distances daily pay more than those who drive only occasionally. If you work from home or drive fewer than 10,000 kilometres per year, you may qualify for low-mileage discounts.
5. Vehicle Use
How you use your vehicle affects your rate. Personal use (commuting, errands, leisure) qualifies for standard rates. Business use (delivery, client visits, transporting goods) requires commercial coverage or appropriate endorsements and costs more. Using a personal vehicle for undisclosed business purposes can void your coverage.
6. Claims History
Your claims history, tracked in Quebec's Fichier central des sinistres automobiles (central accident file), affects your premium for several years. Even not-at-fault claims can affect rates with some insurers. Consider whether filing a small claim is worthwhile when the repair cost is close to your deductible.
Proven Strategies to Reduce Car Insurance Costs
Several strategies can help Montreal drivers reduce premiums without sacrificing essential coverage.
1. Compare Quotes from Multiple Insurers
Insurance rates vary significantly between companies for the same coverage. The same driver can receive quotes ranging from $800 to $1,500 depending on which insurer they contact. Working with an independent broker like Qubit Insurance, who can compare rates from multiple companies, is one of the most effective ways to find the lowest price for your specific driving profile.
2. Bundle Home and Auto Insurance
Combining your car insurance with home, condo, or tenant insurance from the same provider typically yields 10% to 25% discounts on both policies. This is one of the easiest ways to reduce costs with no reduction in coverage.
3. Increase Your Deductibles
Raising your collision deductible from $500 to $1,000 can reduce your premium by 15% to 25%. This strategy works well for experienced drivers with emergency savings who can afford a higher out-of-pocket cost if a claim occurs. Avoid setting deductibles higher than you can comfortably pay.
4. Install Anti-Theft Devices
Installing approved anti-theft systems can reduce the theft portion of your comprehensive premium. For high-theft vehicles in Montreal, some insurers require anti-theft devices as a condition of coverage. Even without requirements, devices like steering wheel locks, kill switches, and GPS trackers can qualify for discounts of 5% to 15%.
5. Consider Usage-Based Insurance (Telematics)
Many insurers offer mobile apps that track your driving habits including braking, acceleration, speed, and time of day. Responsible drivers who demonstrate safe habits through telematics programs can earn discounts of 10% to 30%. Approximately 48% of Quebec drivers opt into telematics programs.
6. Maintain a Clean Driving Record
A clean driving record is the most effective long-term strategy for keeping premiums low. Avoid speeding tickets, traffic violations, and at-fault accidents. Even a single conviction can increase premiums for three to six years. Some insurers offer claims-free discounts that accumulate over time.
7. Review Your Coverage Annually
As your vehicle ages, the value of physical damage coverage decreases. On an older vehicle worth less than $5,000, paying $600 per year for collision coverage may not make financial sense. Adjusting coverage as your vehicle depreciates can reduce premiums significantly.
Common Car Insurance Scenarios in Montreal
1. First-Time Car Buyer
If you are buying your first car, contact an insurance broker before finalizing your purchase. Insurance costs vary significantly by vehicle, and a car that seems affordable to buy might be expensive to insure. We can provide quotes on different vehicles to help you make an informed decision. New car buyers should strongly consider Q.E.F. No. 43 replacement cost coverage.
2. Young Driver Under 25
Young drivers face the highest premiums. Strategies to reduce costs include staying on a parent's policy if possible, choosing a modest vehicle with good safety ratings and low theft rates, maintaining good grades (some insurers offer student discounts), completing an approved driving course, and considering usage-based insurance to demonstrate safe driving habits.
3. Moving to Quebec from Another Province
If you are moving to Quebec from another province, you must obtain a Quebec driver's licence and vehicle registration within a certain timeframe. Your driving history from your previous province can be transferred using a Letter of Experience from your previous insurer. This helps you maintain any experience-based discounts you earned.
4. Adding a Teen Driver to Your Policy
Adding a teenage driver to your policy significantly increases premiums. Consider having them take a driving course, which may qualify for discounts. Telematics programs can help demonstrate safe driving and offset premium increases. Some families assign the teen to an older, lower-value vehicle rather than the family's newest car.
5. Finding Coverage as a High-Risk Driver
If you have multiple accidents, tickets, or a licence suspension, standard insurers may decline coverage or charge very high premiums. Quebec's Groupement des assureurs automobiles (GAA) maintains a Risk Sharing Plan that ensures all Quebec drivers can obtain at least basic coverage. An experienced broker can help navigate high-risk markets and find the best available options.
Information Required for a Car Insurance Quote
Gather the following information before requesting a quote to ensure accurate pricing.
1. Driver Information
Driver's licence number, date of birth, years of driving experience, and residential address. For all drivers in the household who will operate the vehicle, provide the same information.
2. Vehicle Information
Year, make, model, and trim level. Vehicle Identification Number (VIN) provides the most accurate information. Current odometer reading and estimated annual kilometres. Whether the vehicle is owned outright, financed, or leased.
3. Driving History
Details of any accidents, claims, or traffic violations in the past six years for all drivers. Be accurate, as insurers verify this information through Quebec's central accident file and driving record databases.
4. Current Insurance Information
If you currently have insurance, provide your insurer's name, policy number, coverage limits, and renewal date. A Letter of Experience from your current insurer documents your claims-free history and helps secure better rates.
How Independent Brokers Differ from Direct Insurers
Understanding your options helps you make an informed purchasing decision.
Buying Directly from an Insurance Company
When you contact an insurance company directly, you can only purchase that company's products at that company's prices. Their representatives work for the insurer, not for you. If their underwriting views your profile unfavourably, you pay their rates without knowing alternatives exist.
Insurance Through Your Bank
Banks offer insurance as a convenience product. Their representatives typically have limited insurance expertise and are primarily focused on selling banking products. Bank insurance is usually provided by a single underwriting partner, limiting your options.
Working with an Independent Broker
Independent brokers like Qubit Insurance represent you, not the insurance companies. We compare rates from multiple insurers, advocate on your behalf during claims, and provide personalized advice based on your specific situation. For drivers seeking the best combination of price and service, working with a broker often provides better results than shopping on your own.
Why Choose Qubit Insurance for Car Insurance
Qubit Insurance is an AMF-certified damage insurance brokerage based in Montreal. Our representatives are fully licensed by the Autorité des marchés financiers (AMF), Québec’s financial services regulator. This certification confirms that we have completed mandatory training, passed qualification examinations, and comply with the Act respecting the distribution of financial products and services, ensuring you receive professional, regulated insurance advice.
At Qubit Insurance, we help Montreal drivers find competitive rates while making sure they have the right coverage for their needs. We guide you from quote to claim and work to secure the best possible protection for your situation.
With Qubit Insurance, you get:
- AMF-Certified Brokerage: Licensed advisors who meet Quebec’s regulatory standards.
- Independent and Unbiased Advice: We work for you, not the insurance companies.
- Access to Multiple Insurers: We compare rates from several providers to find the best value for your profile.
- Montreal Market Expertise: Local knowledge of postal code rating areas, theft trends, and insurer pricing.
- Claims Support and Advocacy: We assist you during claims and help ensure fair treatment.
Contact Qubit Insurance for a no-obligation car insurance quote. Our Montreal-based team reviews your driving profile, vehicle details, and coverage needs, then compares options to help you secure the best available rate.
Call 514-659-3151 to speak with our car insurance specialists today.
Frequently Asked Questions
Why do young or new drivers pay higher car insurance premiums in Quebec?
Young and new drivers typically pay higher premiums because insurers consider limited driving experience a higher risk for accidents and claims. Insurance pricing factors include age and years licensed, and less experience statistically leads to more claims. As drivers gain experience and maintain a clean record, insurers usually reduce premiums over time.
Can I drive a friend’s or family member’s car under their Quebec insurance?
In Quebec, auto insurance generally follows the vehicle, not the driver. If you borrow a friend’s or family member’s car with their permission and hold a valid licence, their insurance usually covers that trip. However, if you drive the vehicle regularly, the insurer may require you to be added to the policy to avoid coverage issues.
Why can the same car insurance premium change significantly from year to year?
Car insurance premiums can change due to rising repair and parts costs, inflation, claims trends, insurer pricing updates, and changes to your personal driving profile, such as new tickets or claims. Insurers review rates annually based on expected future costs and risk data, which can result in noticeable year-to-year changes even when nothing else seems different.
Do I need collision coverage if my car is older?
Collision coverage is optional in Quebec. For older vehicles with low market value, the annual cost of collision insurance may outweigh the potential payout after depreciation and deductible. Many owners choose to keep liability and comprehensive coverage while removing collisions on older cars to reduce premiums.
How long do accidents and tickets affect my insurance rate?
Most insurers review your driving history over several years when calculating premiums. At-fault accidents usually have the biggest impact, while minor tickets may affect rates for a shorter period. The effect decreases over time, and maintaining a clean record after an incident gradually helps restore lower premiums.
