5 (other) misconceptions about auto insurance
There are many common misconceptions about auto insurance, and not all are true. Let’s debunk more facts from fiction in this second edition.
1- Men pay more for auto insurance than women.
TRUE and FALSE
It all depends on the age group. According to GAA Statistics, there’s a big difference in the cost of premiums for the 16-20 age group (premium for collision coverage in 2022: $858 for men and $692 for women).
The gap narrows with each age group, with premiums almost the same for the 45-64 age group.
It’s interesting to know that the average premium directly reflects claims frequency. The greater the claims frequency, the higher the premium for collision coverage.
2- Quebec has the lowest auto insurance rate in the country.
TRUE
The average auto insurance premium in Quebec, including for material damage and bodily injury, totalled $855 in 2022*, compared to our two closest neighbours New Brunswick and Ontario, with average premiums of $1,132 and $1,683, respectively.
*This amount includes the premium for material damage (private insurers) and the premium for bodily injury (SAAQ).
3- I can contest my insurer’s decision to declare my vehicle a total loss.
TRUE
As a rule, your insurer declares your vehicle a total loss if the cost of repairs exceeds its value. It takes into account several factors, including the vehicle’s age, its general condition, claim-related repairs and market value.
If you disagree with your insurer’s decision, you need to document your file and negotiate a settlement with your insurer. If you can’t come to an agreement, you can also contest the insurer’s decision by arbitration or in the courts.
4- My vehicle will automatically be repaired with new parts.
FALSE
Under the standard auto insurance policy, recycled parts are used to repair vehicles.
To have your vehicle repaired with new parts, you must have purchased one of the following coverages:
- "Replacement cost" endorsement (Q.E.F. No. 43 – Change to indemnity – Option 43A – Partial loss – new parts)
- Replacement insurance (Q.P.F. No. 5)
If you didn’t purchase either coverage, you can still have your vehicle repaired with new OEM parts by paying the price difference between the recycled parts and the OEM parts.
One exception: a windshield is always replaced with a new part.
5- After I hit a car parked next to mine, I leave my contact information on the windshield and wait for the owner to reach me. I did everything I needed to do!
FALSE
According to the the Highway Safety Code, leaving your details on the windshield and leaving is considered a hit and run.
if you are involved in an accident with an unattended road vehicle and cannot contact the owner, you must immediately communicate with the nearest police station to report the accident. Failure to do so could cost you nine demerit points, not to mention a fine of $200 to $600.
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