Running a business in Montreal is financially demanding. Road closures, like those on the Métropolitaine, and rising gas prices add constant pressure for fleet managers.
Insurance is one of the highest fixed costs for any vehicle-based business. Whether you operate a delivery service in Laval, a construction firm in the West Island, or a logistics company near the Port of Montreal, you’re likely overpaying.
Most Quebec businesses pay too much, not because rates are high, but because their policies aren’t optimized for Quebec’s unique insurance system.
This guide from expert insurance brokers in Montreal shows you how to reduce premiums without risking your business.
1. Understand Quebec's Unique Insurance System
To save money, you first need to understand what you are buying. Quebec operates under a system very different from Ontario's or the United States. Once you know this system, you can make smarter choices.
How Quebec Splits Insurance Into Two Parts
Part A: The Public Plan (SAAQ)
The government plan, called the Quebec Automobile Insurance Corporation, covers bodily injuries. If a person gets hurt in a crash, the SAAQ pays for their medical bills and lost income. You already pay for this through your driver's license and registration fees. This cost is built into what you pay the government.
Part B: The Private Plan
This is the policy you buy from a broker like Qubic Insurance. It covers two things. First, it covers Civil Liability, which means damage to other people's property. Second, it covers Physical Damage, which means repairing your own trucks when they get damaged.
The Smart Savings Approach
Since you are not paying for medical coverage on your private policy, your price depends on two main factors. The first factor is how much your vehicle is worth. The second factor is the risk of theft. To save money on fleet insurance, you must focus on managing these two risks. Every tip in this guide connects back to these two factors.
2. Choose the Right Liability Amount
A common question we hear from business owners is simple. They ask: "Can I just get the minimum coverage to save money?" This sounds logical, but it is actually a dangerous trap.
Why the Legal Minimum Is Dangerous
Under Quebec law, the minimum liability coverage is $50,000. For passenger vehicles, the minimum is $50,000. However, for heavy commercial vehicles, the legal minimum is $1,000,000.
The Real Problem: If damages exceed your coverage, your business assets can be seized to pay the difference. A single accident could bankrupt your company. The small savings on premiums are not worth this massive risk.
The Recommended Coverage Level
For 95% of commercial fleets in Montreal, the correct liability limit is $2,000,000. This amount provides strong protection without unnecessary expense.
Why Not $1 Million: The price difference to upgrade from $1M to $2M is often very small. Sometimes it costs just $50 to $100 more per year. But your protection doubles. This is one of the best values in insurance.
Why Not $5 Million: Unless a specific contract requires it, $5 million coverage is usually unnecessary. It adds cost without adding much real-world benefit. Most claims settle well under $2 million.
3. Fight Back Against Montreal's Theft Problem
Theft is a major problem in Montreal because of the Port. Thieves target SUVs and pickup trucks like F-150s and RAMs. They steal these vehicles and ship them overseas. This criminal activity drives up insurance prices for everyone.
- How Anti-Theft Devices Lower Your Premiums: Most insurers offer significant discounts for recognized security systems. The discount you receive often pays for the device within 2 to 3 years. After that, the savings go straight to your bottom line.
- Tag Tracking System: This is the best option available in Montreal right now. The system uses multiple tiny tracking devices hidden throughout the vehicle. Thieves cannot find and remove all of them. Installing Tag can lower your theft premium by 10% to 30%. This is the single most effective anti-theft measure.
- Sherlock Etching: This process marks a serial number on roughly 50 parts of the vehicle. The technicians etch numbers on windows, lights, bumpers, and many other parts. This makes stolen parts very hard to sell because they can be traced.
- OBD Port Locks: Modern thieves use computers to start cars by plugging into the OBD port. This port is usually under the dashboard. A physical lock covers this port and prevents the electronic hack. It is a simple and affordable solution.
4. Use Higher Deductibles Strategically
The deductible is the amount you pay out of pocket before insurance kicks in. Raising your deductible is one of the easiest ways to lower your monthly insurance bill. This strategy works well for businesses that can handle small repairs themselves.
Understanding the Trade-Off
Scenario A: You have a $500 deductible. Your annual premium is $1,500 per vehicle.
Scenario B: You raise the deductible to $1,000 or $2,500. Your annual premium drops to $1,250 per vehicle.
The Math for a Fleet: For a fleet of 10 vehicles, saving $250 per vehicle equals $2,500 in annual savings. Over five years, that is $12,500 back in your pocket.
The Hidden Benefit of Higher Deductibles
Raising your deductible encourages you to pay for small damages yourself. A scratched bumper or minor dent can be fixed without filing a claim. Keeping these small claims off your record helps you maintain a clean claims history. This clean history can unlock additional discounts of 15% to 25% at renewal time. You save money twice with this strategy.
5. Install Telematics for Big Discounts
Telematics means using technology to track how your vehicles are driven. Some drivers resist the idea of being watched. However, the money you save makes this technology worth considering seriously.
How the Technology Works
Insurers like Intact and Desjardins offer telematics programs. You install a small device in each vehicle. The device tracks hard braking, speeding, rapid acceleration, and other driving behaviors. The data goes to your insurer, and they adjust your rates based on how safely your fleet operates.
The Three Levels of Savings
Enrollment Discount: You typically get 5% to 10% off your premium just for signing up. You save money from day one before any data is collected. This is essentially free money for saying yes.
Renewal Discount: After a year of tracking, good driving scores can lead to savings of up to 25%. The better your drivers perform, the more you save. This creates a positive cycle of improvement.
Fuel Savings: When drivers know they are being monitored, they drive smoothly. They brake gently and accelerate slowly. This careful driving saves gas. Often, the fuel savings are worth more than the insurance discount itself.
6. Suspend Coverage During Off-Season
Many Montreal businesses operate seasonally. Landscaping companies work from spring through fall. Snow removal companies work in winter only. It makes no sense to pay for full road coverage when your trucks sit parked for months.
How Seasonal Suspension Works in Quebec
In Quebec, you can use special endorsements to pause and restart coverage. This process is sometimes called "remisage" or storage mode.
What Gets Suspended: When you park a vehicle for the season, you suspend the Collision and General Liability coverage. You are not driving, so you do not need this protection.
What Stays Active: You keep Comprehensive coverage active. This protects the parked truck against fire, theft, and vandalism. Your vehicle is still protected while it sits in your yard or warehouse.
The Impressive Savings
Suspending road coverage can reduce the premium on that vehicle by 70% to 80% for the months it is stored. If you park a truck for four months, you could save hundreds of dollars on that vehicle alone.
Important Note: You must also inform the SAAQ to suspend the vehicle registration. If you forget this step, you may receive fines for having an unregistered vehicle that appears active in the system.
7. Hire Smart and Maintain Your Fleet
Your insurance rate is only as good as your worst driver. One bad driver can raise premiums for your entire fleet. Smart hiring and proper maintenance protect your rates.
Check Driver Records Before Hiring
The Dossier de Conduite: Before hiring any driver, ask for their SAAQ driving record. This official document shows their complete history. A driver with a recent DUI or excessive speeding tickets is a red flag. Adding this driver to your fleet can increase your total premium by 50% or more.
The Cost of One Bad Driver: Insurance companies look at your entire driver roster. They price your policy based on the riskiest driver you employ. One problematic driver affects the rates for all your vehicles.
Keep Up With Vehicle Maintenance
The PEVL Rules: If your vehicles weigh 4,500 kg or more, you fall under stricter SAAQ maintenance rules. Insurers check your safety rating in the system. They know if your trucks fail roadside inspections.
The Consequences: If your trucks have bald tires, bad brakes, or other safety issues, insurers may refuse to renew your policy. They may also cancel your coverage mid-term. Keeping your fleet properly maintained protects your insurance relationship.
8. Prevent Costly Winter Accidents
In Quebec, winter is a liability season. Snow, ice, and slippery roads cause many accidents. Winter claims are a leading cause of premium increases.
Know the Winter Tire Law
The Legal Requirement: Winter tires are mandatory from December 1 to March 15. This is Quebec law, and it applies to commercial vehicles too.
The Penalty for Non-Compliance: The fine for driving without winter tires is over $300, including fees. Police can also tow your vehicle on the spot. This creates expensive delays and recovery costs.
Build a Clean Winter Record
The Long-Term Reward: A fleet with zero at-fault winter accidents for three years becomes a preferred client. Insurers reward this clean record with better rates. You prove that your company takes winter safety seriously.
Simple Prevention Steps: Train your drivers on winter driving techniques. Give them extra time for deliveries when roads are bad. These small steps prevent big claims.
9. Bundle All Your Business Insurance
Many business owners split their insurance across different brokers. They buy Commercial General Liability from one place. They buy fleet insurance from another place. This approach usually costs more money.
The Power of Combining Policies
The Multi-Line Discount: When you bundle Commercial Property, Commercial General Liability, and Commercial Auto insurance with one broker, you trigger a multi-line discount. This discount typically saves you 10% to 15% on your total insurance spend.
Simpler Administration: Having all policies with one broker simplifies your paperwork. Tax season becomes easier. Claims processing becomes smoother. You have one contact person who knows your whole business.
10. Work With an Independent Broker
Many business owners treat insurance as a commodity. They buy the cheapest option from a big bank or call center. This approach is a mistake. Direct insurers usually offer only one product. They cannot shop the market for you.
The Qubit Insurance Advantage
Qubit Insurance is an independent brokerage registered with the Financial Markets Authority(AMF). We work for you, not for any single insurance company.
Market Access: We compare quotes from Canada's top insurers, including Intact, Desjardins, and Economical. We force these companies to compete for your business. Competition drives your price down.
Specialized Knowledge: We know which insurers prefer construction fleets. We know which ones offer the best rates for delivery companies. We know who handles transport businesses well. We match you with the right insurer for your specific industry.
Claims Advocacy: If you have a claim, we fight for you. We do not work for the insurance company. We work for your business. Our job is to make sure your claim gets paid fairly and quickly.
Conclusion
Saving money on fleet insurance is not about cutting corners but making smart choices that fit Quebec’s insurance system. Understanding how the SAAQ and private coverage work together, and choosing $2 million liability, helps protect your fleet. Anti-theft devices, telematics, and higher deductibles can reduce premiums significantly.
A 10-vehicle fleet can save $5,000–$10,000 yearly, adding up to major reinvestment potential over time. Don’t wait for renewal, review your policy, check deductibles, ask for telematics discounts, and ensure clean driver records to secure long-term savings.
