SAAQ Insurance & Claims Management 1 — Questions and Answers
Question 1: What is the minimum required auto insurance coverage in Quebec?
- $25,000.
- $50,000. (Correct answer)
- $100,000.
- $500,000.
Correct answer: $50,000.
In Quebec, all vehicle owners are legally required to carry a minimum of $50,000 in civil liability insurance from a private insurer. This coverage protects the driver against claims for property damage or bodily injury caused to others in an accident. This private insurance complements the public insurance provided by the SAAQ for personal injury claims.
Question 2: What does Quebec’s public auto insurance cover?
- Vehicle repairs only.
- Personal injury claims. (Correct answer)
- Roadside assistance.
- Towing services.
Correct answer: Personal injury claims.
Quebec operates a unique public auto insurance system managed by the SAAQ (Société de l'assurance automobile du Québec). This public insurance exclusively covers personal injury claims for all Quebec residents involved in a road accident, regardless of who is at fault. Property damage, however, is covered by private insurance policies.
Question 3: What should you do immediately after being involved in a minor car accident?
- Leave the scene if there are no injuries.
- Call the police for all accidents.
- Exchange information and document the accident. (Correct answer)
- Ignore reporting if damages are minor.
Correct answer: Exchange information and document the accident.
Immediately after a minor car accident, drivers should ensure safety, then exchange information with all parties involved, including names, contact details, driver's license numbers, and insurance information. It is also crucial to document the scene with photos and notes for insurance purposes. Calling the police is generally required only if there are injuries, significant damage, or if a hit-and-run occurs.
Question 4: Which factor can influence your auto insurance premium in Quebec?
- The color of the vehicle.
- Past claims and driving history. (Correct answer)
- The number of passengers in the car.
- The type of gasoline used.
Correct answer: Past claims and driving history.
Auto insurance premiums in Quebec, like elsewhere, are primarily influenced by factors that indicate risk. A driver's past claims history, including previous accidents or traffic violations, and their overall driving record (e.g., demerit points, license suspensions) are significant indicators of future risk. These factors directly impact the cost of their insurance policy.
Question 5: What is a deductible in auto insurance?
- A fee paid monthly to the insurer.
- The amount paid before insurance coverage kicks in. (Correct answer)
- A penalty for filing a claim.
- The total amount an insurer will pay for damages.
Correct answer: The amount paid before insurance coverage kicks in.
A deductible in auto insurance is the amount of money an insured person must pay out-of-pocket towards a covered loss before their insurance company starts paying. For example, if you have a $500 deductible and your car sustains $2000 in damages, you pay the first $500, and your insurer covers the remaining $1500. It represents the portion of the loss that the policyholder agrees to bear.
Question 6: How does Quebec’s no-fault insurance system work?
- Only at-fault drivers receive compensation.
- All injury claims are covered by the SAAQ, regardless of fault. (Correct answer)
- Fault must always be determined before compensation.
- Only property damage is covered under no-fault insurance.
Correct answer: All injury claims are covered by the SAAQ, regardless of fault.
Quebec's no-fault insurance system, specifically for bodily injuries, means that anyone injured in a road accident in Quebec receives compensation from the SAAQ, regardless of who caused the accident. This system streamlines the claims process for injuries by removing the need to determine fault, ensuring quicker access to benefits for medical care and income replacement. Property damage claims, however, are handled by private insurers based on fault.
SAAQ Insurance & Claims Management 1
What is the minimum required auto insurance coverage in Quebec?