If you live in Montreal, you know that the cost of living and driving can be high.
When you open your insurance renewal or shop for a new quote, you probably expect your postal code, driving record, and vehicle type to be the main factors driving the price.
But there is another factor that plays a massive, often silent role in your premium: your credit score.
At Qubit Insurance, we believe in total transparency. We don’t just want to sell you a transport insurance policy; we want you to understand why you are paying what you are paying. Today, we are pulling back the curtain on the link between your financial health and your insurance costs in Quebec.
Why Do Insurers Care About My Credit Score?
It might seem unfair. What does paying off your Visa bill have to do with how safely you drive on the Decarie Expressway?
In the insurance world, it comes down to risk prediction. Insurance companies use massive amounts of data to predict how likely a client is to make a claim. Insurers’ actuarial models have shown a correlation:
- The Statistic: Individuals with higher credit scores statistically make fewer insurance claims.
- The Risk Factor: Conversely, those with lower scores are statistically more likely to file claims for accidents or property damage.
Because of this data, most major insurers in Quebec use your credit rating as a "predictive variable." It helps them decide the discount level they can offer you.
The Quebec Legal Landscape: Know Your Rights
It is a common misconception that insurers are banned from checking credit scores. This is true in Ontario and Newfoundland for auto insurance, but here in Quebec, it is fully legal and a commonly used practice for both Home and Auto insurance.
However, as a consumer in Montreal, you have rights protected by the Autorité des marchés financiers (AMF):
Consent is King: We (or any insurer) cannot check your credit file without your permission. You must say "Yes."
The "Soft Hit" Guarantee: When Qubit Insurance or our partners check your credit for a quote, it is recorded as a "soft inquiry." Unlike applying for a credit card or mortgage (a "hard hit"), this check does NOT lower your credit score.
You Can Refuse: You have the right to say no. An insurer cannot deny you coverage solely because you refused a credit check.
"So, Should I Refuse the Check?"
This is the most frequently asked question we receive at our Metcalfe Street office.
Our Advice: Generally, no, you shouldn't refuse.
While you have the right to refuse, doing so usually removes your eligibility for the "Credit Score Discount." If you have a decent credit history and you say "no," the insurer will likely assign you a neutral or average rating, which could result in a higher premium than you deserve.
The Qubit Advantage: We Shop the Market for You
This is where working with an insurance broker in Montreal, like Qubit Insurance, makes a difference compared to going directly to a single bank or insurance company.
We work with 25+ insurers. Each of these companies treats credit scores differently:
- Insurer A might heavily penalize a score under 650.
- Insurer B might be more lenient and offer great rates for "average" credit.
- Insurer C might specialize in high-risk drivers where credit is less of a factor.
If you go directly to Insurer A, you might get a high price and think, "I can't afford insurance." But when you work with Qubit, we enter your details once and compare options across the board. We find the insurer that views your specific profile most favorably.
3 Myths About Credit and Insurance
Myth #1: "My credit is bad, so I can't get insurance."
Fact: False. You can always get insurance. A lower score might mean a higher premium, but Qubit Insurance specializes in finding affordable coverage for every situation, including those with "less than perfect" financial histories.
Myth #2: "Checking my credit affects my mortgage application."
Fact: False. Insurance checks are invisible to lenders looking at your report for loan purposes. It has zero impact on your borrowing power.
Myth #3: "If my credit score drops, my policy will be cancelled."
Fact: False. An insurer cannot cancel your active policy just because your score dipped. They can only adjust the rate at renewal time.
How to Lower Your Premium (Regardless of Credit)
If you are working on rebuilding your credit, you can still save money today. Here is how Qubit can help:
Bundle and Save: Combining your Home and Auto insurance with Qubit can often save you 15-20%. This multi-line discount can outweigh a "credit surcharge."
Increase Deductibles: Raising your deductible from $500 to $1,000 can significantly drop your monthly payment.
Review Your Coverage: Are you paying for comprehensive coverage on a 15-year-old car? We can help you trim the fat.
Ready for a Quote?
Don't let the fear of a credit check stop you from finding the best rate in Montreal. Whether your credit score is 800 or 500, Qubit Insurance is in your corner. We navigate the complexities of Quebec's insurance market so you don't have to.
