Automobile Insurance
Core Concepts
Automobile insurance in Canada is provincially regulated, with mandatory third-party liability coverage. In Quebec, the Société de l'assurance automobile du Québec (SAAQ) provides no-fault bodily injury coverage to all residents, while private insurers cover property damage and liability for damage to others' property. Key coverages include third-party liability (minimum $50,000 in Quebec, though often $1M or $2M), collision or upset, comprehensive (fire, theft, vandalism), and endorsement coverages like rental reimbursement, waiver of depreciation, and replacement cost. The concept of "direct compensation for property damage" (DCPD) applies in some provinces, but in Quebec, the SAAQ handles bodily injury, and insurers handle property damage. Important rating factors include driver age, vehicle type, driving record, and territory. The "at-fault" determination follows the provincial insurance act or the SAAQ's rules.
Traps in Questions
A frequent trap is the role of the SAAQ: it covers bodily injury regardless of fault, but property damage is covered by private insurers. Candidates may confuse the minimum liability limits. Another trap is the "all perils" versus "specified perils" coverage. Also, questions may test the "waiver of depreciation" endorsement, which pays replacement cost for a new vehicle if totalled within a specified period.
Worked Example
A driver in Quebec is involved in an accident where they are at fault. Their private insurer pays for the other driver's property damage under third-party liability, and their own collision coverage pays for their vehicle damage (subject to deductible). Bodily injury claims go to the SAAQ.
Rule of Thumb
For Quebec auto claims: bodily injury → SAAQ; property damage → private insurer. Always check the policy's liability limit and deductibles.