Commercial vehicle insurance is more than just another business expense. It’s a safeguard that protects you when unexpected events occur, like accidents, theft, or damage. Whether you operate a single delivery van in Montréal or a fleet of transport trucks across Canada and the U.S., the right coverage protects your finances, your reputation, and your customers.
Québec’s system is unique compared to other provinces. It uses a hybrid public and private insurance model, which helps keep premiums lower on average. However, the actual cost still depends on several factors: vehicle type, routes, driver history, and cargo.
For small businesses, that difference can mean the gap between affordable and stressful. For larger fleets, it can mean tens of thousands of dollars a year.
This guide explains how commercial transport insurance works in Québec, how much it costs by vehicle type, what affects your premium, and practical ways to lower your costs while keeping strong protection. You’ll also come to know about the importance of commercial insurance.
**Please note that the cost figures mentioned in this blog are not official quotes from Qubit Insurance. They represent average market estimates only.
Understanding Commercial Vehicle Insurance Cost in Québec
1. Québec’s Hybrid Insurance Model
Québec divides insurance responsibilities between the public SAAQ and private insurance companies.
The SAAQ (Société de l’assurance automobile du Québec) covers all injuries resulting from vehicle accidents that happen within Québec — no matter who is at fault. This no-fault public insurance is funded by licence and registration fees, not private policies.
Private insurers, on the other hand, handle civil liability (property damage you cause in Québec) and all bodily injury or property damage that happens outside Québec. They also provide optional coverages such as collision, comprehensive (theft, fire, vandalism), and cargo insurance.
Example: If your delivery van hits another vehicle in Québec, the SAAQ pays for the injuries, and your private insurer pays for property damage. If your truck crosses into Ontario or the U.S., your private insurer covers both injury and property damage.
This mixed model helps keep Québec’s commercial auto insurance rates more competitive, but still requires coverage tailored to your business operations.
2. Important Legal Definitions That Affect Your Insurance
Heavy Vehicles: Any truck or vehicle combination with a gross vehicle weight rating (GVWR) of 4,500 kg or more, including tow trucks, buses, and vehicles transporting dangerous goods. These vehicles must have at least $1,000,000 in liability coverage. Carriers transporting hazardous materials must carry $2,000,000.
Light Commercial Vehicles: Vans, pickups, and passenger cars under 4,500 kg used for work. The legal minimum is $50,000, but most business owners choose $1–2 million for full protection, especially if they travel across provinces or into the U.S.
Commercial Use: Any vehicle used to deliver goods, carry passengers for pay, or support a business operation. Even using your personal car for deliveries or regular business visits might require a commercial policy.
If you’re unsure about your limits or classifications, Qubit Insurance can guide you to the right policy based on your vehicles, routes, and cargo.
Light Commercial Vehicles in Québec (Under 4,500 kg GVWR)
Light commercial vehicles form the foundation of small and medium-sized businesses. These include delivery vans, work pickups, and passenger cars used for business activities. While the legal minimum is $50,000 in liability, most businesses choose $1–2 million for better protection through small business insurance.
1. Delivery and Cargo Vans
Average annual Delivery and Cargo Insurance cost: $1,200 – $3,000.
Example: A small flower shop in Québec City that delivers locally might pay about $1,200 per year. In contrast, a Montréal-based courier company making multiple daily deliveries may pay closer to $3,000 per van due to high mileage, dense traffic, and higher theft risk. Carrying expensive or fragile cargo (like electronics or perishables) can raise premiums by 10–20 %. Adding GPS tracking, dash cameras, and regular driver training can help balance these increases and reduce long-term costs.
2. Pickup Trucks for Contractors
Average annual Professional Liability Insurance cost: $1,200 – $3,000.
Example: Contractors such as electricians, landscapers, and plumbers often use pickups to transport tools and materials. A self-employed plumber with one truck might pay $1,200, while a team with several fully loaded vehicles could pay $3,000 per truck. Secure overnight parking, tool-locking systems, and limited after-hours driving can lower premiums. Those in the building industry can explore construction insurance for comprehensive protection.
3. Passenger Cars Used for Business
Average annual Insurance cost: $1,000 – $2,000.
Example: A marketing consultant who drives to meet clients once or twice a week may pay around $1,000. But a car used daily for sales calls or deliveries might reach $2,000, especially if it frequently travels in busy urban areas.
Read More - What is Auto Transport Insurance
Medium Commercial Trucks Insurance Cost in Québec (4,500 – 11,793 kg GVWR)
Medium-duty trucks are considered “heavy vehicles” in Québec and must carry at least $1,000,000 in liability coverage. These are common in logistics, local delivery, and moving services.
1. Cube Vans and Box Trucks
Average annual cost: $2,500 – $5,000.
Example: A moving company that operates mainly in suburban areas might pay around $2,800 per truck. However, a furniture delivery company working in downtown Montréal could pay $4,500 or more due to narrow streets, tight turns, and more frequent minor accidents.
2. Refrigerated Straight Trucks (Reefers)
Average annual cost: $3,000 – $6,000.
Example: A grocery supplier delivering to supermarkets may pay $3,200 per year, while a pharmaceutical carrier moving temperature-sensitive medications may pay $5,000 or more because of strict temperature control requirements. Those transporting perishable goods often look into refrigerated truck insurance for additional spoilage and equipment coverage.
Heavy Trucks and Tractor-Trailers Insurance Premiums
Heavy trucks and tractor-trailers involve higher risks, meaning higher premiums. Long-haul operators typically need $2,000,000 in liability coverage for both Canadian and U.S. routes.
1. Long-Haul Tractor-Trailers
Average annual Insurance cost: $6,000 – $12,000.
Example: A trucking company operating between Montréal and Toronto may pay $6,500 per truck. Cross-border refrigerated units hauling perishable goods to the U.S. might pay $10,000 – $12,000. Premiums depend on distance, cargo value, and driver experience.
2. Regional and Local Semi-Trucks
Average annual Insurance cost: $5,000 – $9,000.
Example: A carrier operating within 500 km of Québec City could pay around $5,500, while a company covering both Québec and Ontario might pay $8,000 – $9,000, since longer distances and different jurisdictions increase exposure.
Passenger Transport (Taxis, Ride-Hailing, and Buses)
Vehicles that transport people have extra liability exposure and must meet high safety standards.
1. Taxis and Ride-Hailing Vehicles
Average annual Cost of Passenger transport insurance: $3,000 – $7,000.
Example: A full-time Montréal taxi operating 12 hours a day could pay $6,000 – $7,000, while a part-time driver in a smaller city like Sherbrooke may pay $3,000 – $4,000. Using telematics or dash cameras often earns a 5 – 10 % discount.
2. Buses and Minibuses (School, Shuttle, Charter)
Average annual cost: $5,000 – $12,000.
Example: A large urban shuttle bus serving downtown Montréal might cost $10,000 – $12,000, while a rural school-bus route may cost $5,000 – $6,000. Many operators choose $2,000,000 in liability for extra safety.
Tow Trucks
Tow trucks are always classified as heavy vehicles under Québec law.
Average annual cost: $5,000 – $15,000.
Example: A 24-hour towing service working in Montréal’s downtown could pay $12,000 – $15,000 per truck due to traffic and continuous operation. A local garage offering limited towing might pay $5,000 – $6,000. Strong driver training, customer-vehicle coverage, and secure parking help reduce risks and insurance costs.
Specialized Haulers (Flatbeds, Step-Decks, Lowboys)
Specialized haulers transport heavy or oversized loads, which increases exposure.
Average annual Flatbed Insurance cost: $6,000 – $15,000.
Example: A flatbed trailer operator carrying steel beams might pay $7,000 – $8,000, while a lowboy hauling construction cranes across provinces could pay $12,000 – $15,000. Permits, pilot cars, and heavy cargo values all add to premiums.
Dangerous Goods and Tankers (Hazmat)
Transporting hazardous materials requires strict safety procedures and specialized coverage.
Average annual cost: $15,000 – $30,000.Minimum required liability: $2,000,000.
Example: A fuel transport company may pay $20,000 – $25,000 per truck because of explosion and fire risks. A chemical hauler could pay even more due to contamination and environmental cleanup exposure. Insurance often includes spill-response planning, driver training, and environmental liability protection.
Farm and Forestry Vehicles
Farming and forestry are vital to Québec’s rural economy. Vehicles that occasionally use public roads still need proper insurance.
1. Farm Trucks and Tractors
Average annual cost: $350 – $1,500.
Example: A small family farm that uses a pickup truck locally for feed delivery might pay around $400, while a large operation transporting grain across regions could pay $1,200 – $1,500. Bundling your farm vehicles with commercial property insurance can lower total premiums.
2. Logging Trucks
Average annual cost: $6,000 – $10,000.
Example: A forestry company hauling logs from northern Québec may pay $9,000 – $10,000, while one working near major highways might pay closer to $6,000. Remote terrain, winter conditions, and heavy loads all raise costs.
Municipal and Emergency Vehicles
Public-sector vehicles have specialized insurance needs because they serve critical roles.
Average annual cost: $3,000 – $8,000.
Example: Fire trucks and ambulances usually cost $3,000 – $6,000 due to trained drivers and consistent maintenance. Snowplows, garbage trucks, and street sweepers often cost $4,000 – $8,000, especially in high-snow regions. The SAAQ covers injuries, while private insurers handle property damage, repairs, and third-party liability.
Off-Highway Vehicles Used for Business
Even vehicles used mainly off-road must have insurance if used for work.
Average annual cost:
- ATVs and Side-by-Sides: $800 – $2,000.
- Snowmobiles: $600 – $1,500.
Example: A forestry business using ATVs for inspection may pay $1,500. A resort offering guided snowmobile tours may pay $1,000 per sled, while trail maintenance operators might pay slightly less.
Additional Commercial Vehicle Categories
To give you the complete picture, here are more types of vehicles commonly insured in Québec:
- Trailers: Freight, refrigerated, livestock, dump, and container trailers follow the towing vehicle’s liability policy. Physical-damage coverage adds $400 – $1,000 per year, depending on trailer value.
- Motorcycles and Scooters: Used for delivery or courier work, these cost $700 – $1,800 annually.
- Mobile Business Units: Food trucks, mobile clinics, vans, or retail insurance range from $2,000 – $4,500, depending on equipment and layout.
- Promotional and Media Vehicles: LED billboard trucks, film production vans, or broadcast units typically cost $3,000 – $7,000.
- Rental and Leasing Fleets: Require Q.P.F. No. 5 policies, ranging from $2,500 to $10,000 +, depending on vehicle type and turnover rate.
- Armored and Specialty Vehicles: Armored trucks, hearses, or secure cash-transport units often exceed $10,000 per year because of their cargo and risk profile.
Key Factors That Influence Your Commercial Vehicle Premium
Commercial truck insurance premiums depend on how much risk your business presents. Insurers evaluate aspects like your fleet, drivers, routes, and claims history to set your rate. Here are the main factors that impact costs:
- Fleet Size and Composition – Larger fleets often get lower per-vehicle rates. Balanced and well-maintained fleets usually cost less to insure.
- Driver Records and Experience – Clean records and trained, experienced drivers lower truck insurance premiums, while accidents or violations increase them.
- Routes and Operating Territory – Local operations are cheaper to insure; long-distance and cross-border routes add extra costs.
- Vehicle Age and Condition – Mid-aged, well-maintained trucks with safety features qualify for better rates; old or high-tech new trucks cost more.
- Annual Mileage and Usage – More mileage or high-risk driving conditions raise premiums, while lighter or local use may earn discounts.
- Cargo Type and Value – Low-risk cargo costs less to insure than high-value or hazardous materials.
- Security, Storage, and Telematics – Secure storage, GPS tracking, and driver monitoring reduce risk and may lead to discounts.
- Claims History and Management – Fewer and well-managed claims improve insurer confidence and lower premiums.
- Type of Vehicle – Heavier or specialized vehicles have higher rates than smaller delivery vans.
- Coverage Type and Deductible – Broader coverage and lower deductibles increase costs; higher deductibles lower them.
- Business Location – Urban operations or high-crime areas mean higher premiums than suburban or rural bases.
- Broker and Policy Customization – A knowledgeable broker can tailor coverage, identify discounts, and negotiate better terms.
Conclusion
Commercial vehicle insurance is much more than a legal requirement — it’s a core part of your business’s risk management strategy. The premium you pay is not arbitrary; it’s the result of how insurers assess dozens of risk factors, from driver history and vehicle condition to routes, cargo, and claims behaviour. Every decision you make — from who you hire to how you maintain your fleet — shapes that risk profile and, ultimately, the cost of your truck insurance coverage. The good news is that many of these factors are within your control. By understanding them in depth, you can take proactive steps to reduce risk, strengthen safety, and position your company for better insurance terms over time.
Ready to explore your options? Whether you operate a single truck or manage a large commercial fleet, Qubit Insurance can help you secure the right coverage at the best possible rate. Our team will review your business in detail, explain every available coverage option, and customize a policy that fits your needs — all with no obligation and no pressure to commit. Get in touch with us today for a free, no-obligation quote and start building a smarter, more cost-effective insurance strategy for your business.
