Semi-truck insurance is one of the biggest expenses for trucking businesses in Quebec. Whether you are a leased owner-operator or operating under your own authority, understanding these costs helps you budget properly and choose the right coverage.
As an AMF-certified insurance broker in Montreal, Qubit Insurance works directly with Quebec truckers to help them understand pricing, coverage requirements, and cost-saving opportunities.
This guide breaks down exactly what you will pay, how Quebec’s insurance system affects transportation insurance, and proven ways to lower your premiums. All information is specific to Montreal and Quebec’s regulatory requirements.
Insurance Cost Breakdown by Coverage Type
Each coverage type has its own cost. Understanding these individual costs helps you see exactly where your premium goes.
1. Primary Liability Insurance
The annual cost runs from $9,000 to $12,000. This is your largest expense. Primary liability covers damage and injuries you cause to others. Quebec law requires minimum coverage of $1,000,000 for vehicles with gross weight over 3,000 kg and $2,000,000 for vehicles transporting dangerous goods.
Most shippers and freight brokers require $2,000,000 minimum coverage before they will work with you. If you haul into the United States, carriers typically require $5,000,000 to protect against American lawsuit judgments.
2. Physical Damage Coverage
Annual cost runs $1,500 to $6,000. Physical damage coverage pays to repair or replace your truck and trailer. Cost depends primarily on your equipment's value.
Collision coverage pays for damage from accidents with other vehicles or objects. Comprehensive coverage pays for theft, fire, vandalism, weather damage, and animal strikes. A newer truck worth $150,000 costs more to insure than an older truck worth $50,000. Some insurers calculate physical damage premiums as a percentage of vehicle value, typically 3% to 5%.
3. Cargo Insurance
Annual cost runs $400 to $1,800. Cargo insurance protects the freight you haul. Costs vary based on cargo type and coverage limits. Standard limits are $100,000 but high-value freight may require $250,000 or more.
Refrigerated cargo costs more because of spoilage risk. Expect to pay 20% to 40% more than dry van rates. Most insurers will not cover cargo spoilage if your refrigeration unit is older than 10 to 12 years, even if your truck is new.
4. Non-Trucking Liability
Annual cost runs $400 to $700. Non-trucking liability covers your truck when you use it for personal, non-business purposes. This includes driving home after a dispatch, running personal errands, or taking the truck to a mechanic. This coverage does not apply when you are under dispatch or hauling freight.
5. Bobtail Insurance
Annual cost runs $350 to $500. Bobtail insurance covers your tractor when you drive without a trailer attached. This applies whether the trip is for business or personal reasons.
The key difference is that Bobtail covers driving without a trailer for business purposes, while Non-Trucking Liability covers personal use only.. Some policies combine both coverages while others treat them separately.
6. General Liability
Annual cost runs $500 to $800. General liability insurance covers non-driving business risks. This includes someone slipping and falling at your business location, accidentally damaging property at a loading dock while on foot, and advertising injury claims like libel or copyright issues. This coverage is separate from your auto liability.
7. Occupational Accident Insurance
Annual cost runs $1,600 to $2,200. If you are an owner-operator and not a company employee, you typically do not qualify for workers' compensation. Occupational accident insurance fills this gap by covering your medical expenses, disability, and death benefits if you are injured on the job.
Read More: 6 Key Things to Look For in Commercial Motor Insurance for Your Trucking Company
Cost Comparison: Leased Operators vs Own Authority
How you structure your business has a direct impact on insurance costs. The difference can be $15,000 or more per year.
1. Leased to a Motor Carrier
Annual cost runs $3,600 to $5,400. When you lease to a carrier, they provide primary liability coverage because you operate under their authority.
You only need bobtail or non-trucking liability at $350 to $700, physical damage coverage at $1,500 to $4,000, and optional occupational accident insurance at $1,600 to $2,200.
A leased operator with an older truck can pay as little as $2,000 to $3,000 per year. A newer truck with full coverage typically runs $4,000 to $6,000.
2. Operating Under Your Own Authority
Annual cost runs $12,000 to $28,800 or more. With your own MC number, you are responsible for all required insurance.
This includes primary liability at $9,000 to $15,000, physical damage at $1,500 to $4,000, cargo insurance at $400 to $1,800, general liability insurance at $500 to $800, bobtail insurance at $350 to $500, and occupational accident insurance at $1,600 to $2,200.
3. New Venture Pricing
Annual cost runs $30,000 to $45,000 or more. If your business is less than three years old, many standard insurers will decline coverage entirely because they have no safety data to evaluate.
In these cases, insurance is usually obtained through the Facility Association, Quebec’s "Market of Last Resort." This is a pool for high-risk operators that charges significantly higher premiums until you establish a clean 3-year claims history.
Broker Tip: Many new truckers choose to work as leased operators for 3–5 years to build their record before applying for their own authority. If you are starting a new venture, contact Qubit Insurance first. We specialize in finding standard market alternatives to help you avoid the high costs of the Facility Association.
Factors That Affect Your Premium
Insurance companies evaluate specific risk factors when calculating your premium. Understanding these helps you take action to lower costs.
1. Driver Experience and Record
This is the single largest factor. Insurers review years of Class 1 CDL experience with minimum 2-3 years preferred, accident history for the past 3-5 years, moving violations and tickets, and previous claims frequency and severity. A driver with 5 or more years of clean history can pay 30% to 50% less than a driver with 2 years of experience and one at-fault accident.
2. Operating Radius
Where you drive determines your exposure to different legal systems and traffic conditions. Local operations within Quebec have the lowest cost because you benefit from SAAQ protection against bodily injury lawsuits. Regional operations covering Quebec, Ontario, and Maritimes have medium cost because you face lawsuit exposure in other provinces. Cross-border operations to the United States have the highest cost because American courts award much larger judgments than Canadian courts.
3. Cargo Type
What you haul directly affects your risk profile. Dry van general freight has standard pricing with lower risk because cargo is enclosed and secured. Refrigerated trailers cost 20% to 40% higher because of spoilage risk if equipment fails. Flatbed runs 15% to 30% higher because of unsecured load risk and cargo shifting. Hazardous materials cost 50% to 100% higher and require $2,000,000 minimum liability.
4. Equipment Age and Value
Newer trucks typically cost more to insure because they cost more to repair or replace. However, trucks with modern safety technology may qualify for discounts including electronic stability control, collision avoidance systems, lane departure warnings, dash cameras, and telematics with GPS tracking. Trucks older than 10 years may face coverage restrictions or higher deductibles.
5. Claims History
Your claims record over the past 3-5 years significantly impacts your insurance cost. Zero claims get the best rates available. One small claim causes a modest increase. Multiple claims or one large claim causes a significant increase. A pattern of claims may result in being declined by standard insurers.
6. Safety Rating
Your CTQ safety rating from the Commission des transports du Québec directly affects insurability. A satisfactory rating gets standard rates from all insurers. A conditional rating means limited insurer options and higher rates. An unsatisfactory rating may mean being declined by the standard market, with Facility Association rates applying.
Quebec's Legal Requirements for Semi-Trucks
To operate legally in Quebec, you must meet specific insurance minimums and registration requirements.
1. Insurance Minimums by Vehicle Weight
Vehicles over 3,000 kg gross weight require minimum $1,000,000 civil liability coverage with Q.P.F. No. 1 policy form required. Vehicles transporting dangerous goods require minimum $2,000,000 civil liability coverage with additional safety certifications required.
Although the law requires $1,000,000, most freight brokers and shippers require $2,000,000. You will have difficulty finding loads without this coverage level.
2. CTQ Registration Requirements
If your vehicle has a gross vehicle weight rating of 4,500 kg or more, you must register with the Commission des transports du Québec, obtain a safety rating called cote de sécurité, keep your NIR document in the cab at all times, maintain proof of insurance in the vehicle, and complete mandatory mechanical inspections every 6 or 12 months.
3. Cross-Border US Requirements
Operating into the United States requires an MCS-90 endorsement that proves to US authorities that your Canadian insurer guarantees payment for accidents on American soil. You also need BMC-91 filing required for motor carriers operating under their own authority in the US. Higher liability limits of $1,000,000 to $5,000,000 are typically required depending on cargo type.
The 9% Insurance Tax Most Quebec Truckers Miss
Quebec applies a 9% provincial tax to all insurance premiums. This tax is added to the quoted price and often comes as a surprise to truckers who are budgeting based only on the base premium. Unlike GST/QST on equipment or fuel, this 9% is not an Input Tax Refund (ITR).
The impact adds up quickly. On a $10,000 policy, the 9% tax adds $900 for a total cost of $10,900. A $15,000 policy increases by $1,350 to $16,350. On a $20,000 policy, the tax adds $1,800, bringing the total to $21,800. For a new venture paying $30,000, the tax adds $2,700, for a total cost of $32,700.
To avoid surprises, always confirm whether an insurance quote includes or excludes this tax. For example, a quote of $20,000 before tax actually costs $21,800. Ask your broker to provide the full cost, including all taxes and fees, so you can budget accurately.
Seven Proven Ways to Lower Your Premium
These strategies help Quebec truckers reduce insurance costs without sacrificing coverage.
1. Build Experience Before Getting Your Own Authority
Work as a company driver or leased operator for 3-5 years before applying for your own MC number. Insurers heavily penalize inexperience. Three years of clean driving history can save you $10,000 to $15,000 annually compared to new venture rates.
2. Increase Your Deductible
Higher deductibles reduce premiums. For semi-trucks, deductibles of $5,000 to $10,000 are now standard. Raising your deductible from $1,000 to $2,500 typically saves 5% to 10%. Raising from $1,000 to $5,000 saves 10% to 15%. Raising from $1,000 to $10,000 saves 15% to 20%. Only raise your deductible if you have cash reserves to cover it in case of a claim.
3. Install Safety Technology
Insurers offer discounts for trucks equipped with safety features. Dash cameras front and rear can save 5% to 10%. Telematics and GPS tracking can save 5% to 15%. Collision avoidance systems can save 5% to 10%. Dash cameras also protect you against fraudulent claims which can save thousands in premium increases.
4. Use Lay-Up Coverage During Off-Seasons
If you park your truck for winter months, request a lay-up endorsement. This suspends road coverage while maintaining fire and theft protection. Potential savings run 40% to 60% for the months the vehicle is parked. Remember to reactivate full coverage before driving again.
5. Maintain a Clean Safety Record
Your CTQ and NIR rating directly affects premiums. Protect it by completing pre-trip inspections daily, keeping detailed maintenance logs, addressing defects immediately, and preparing for roadside inspections. One failed inspection can raise your premium by 10% to 20%.
6. Bundle Multiple Policies
If you have separate policies for truck, cargo, property, and general liability, bundling them with one insurer typically saves 5% to 15%. Ask your broker to quote all coverages together rather than separately.
7. Work With an Independent Broker
Independent brokers are not tied to one insurance company for truck insurance. They shop your business to multiple insurers and negotiate on your behalf, as we do at Qubit Insurance. Trucking insurance rates vary significantly between companies, and a broker who specializes in transportation can often find coverage 15% to 25% cheaper than going directly to one insurer.
What Semi-Truck Insurance Does Not Cover
Understanding exclusions prevents surprises during claims.
1. Standard Exclusions
Your policy typically excludes wear and tear or mechanical breakdown from poor maintenance, intentional damage or fraudulent claims, fines, penalties, and regulatory violations, cargo spoilage from refrigeration units older than 10-12 years, damage while operating outside your declared radius, and claims from unlisted drivers.
2. Coverage Requiring Separate Policies
Some risks require separate policies including environmental cleanup from spills through pollution liability, professional errors in logistics or brokering through errors and omissions, employee injuries through workers' compensation.
Cyber-related losses, such as data breaches, ransomware attacks, or hacked dispatch systems, are excluded from trucking policies and require cyber risk insurance.
Conclusion
Semi-truck insurance costs in Montreal vary based on how you operate, whether you are leased or run under your own authority, and where you drive. Leased operators typically have the lowest costs, while owner-operators with regional, cross-border, or new ventures face higher premiums. Always remember to include Quebec’s 9% insurance tax when budgeting your true insurance cost.
Because Quebec uses a hybrid insurance system, with SAAQ handling bodily injuries and private insurers covering property damage and out-of-province liability, coverage can be more complex than in other provinces. Working with an AMF-licensed independent broker helps ensure your policy meets legal requirements, avoids coverage gaps, and is priced correctly for your operation.
Ready to get accurate quotes for your trucking operation? Contact Qubit Insurance for a free consultation. Our Montreal-based team specializes in semi-truck insurance and can help you find coverage that fits your specific needs.
Frequently Asked Questions
How much does semi-truck insurance cost per month in Montreal?
Monthly costs range from $300 to $450 for leased operators up to $2,500 or more for new ventures with their own authority. Established owner-operators with clean records typically pay $500 to $1,600 per month depending on their operating radius.
Why is insurance so expensive for new trucking businesses?
Insurers have no claims history to evaluate. Statistics show new ventures have higher accident rates and failure rates. Standard insurers often decline new authorities, forcing them to use the Facility Association at premium rates of $30,000 to $42,000 or more per year. After 2-3 years with a clean record, you can transition to standard market rates.
Can I get insurance with a bad safety rating?
Yes, but expect to pay significantly more. Poor CTQ ratings limit your options to substandard market insurers or the Facility Association, where premiums can be double or triple standard rates. Improving your safety rating is the fastest way to reduce these costs.
Do I need separate insurance for the United States?
You need additional endorsements, not separate insurance. Your Canadian policy must include MCS-90 and BMC-91 filings for US operations. You will also need higher liability limits, typically $1,000,000 to $5,000,000, because American courts award much larger judgments than Canadian courts.
