Auto Insurance at a Glance
Automobile Claims Database - A public register belonging to the Autorité des marchés financiers (AMF), who has delegated management thereof to the Automobile Insurers Group. The database contains data on all automobile claims filed in the past six years.
Claims Record - A record containing data on all claims in the pas six years involving you (accident, broken window, theft, etc.).
Deductible - The amount you must pay when you make a claim. For example, a $250 collision deductible means that if you're responsible for an accident, you pay the first $250 and your insurer pays the balance. To find out the most common deductibles, click here.
Depreciation - The value given to an item after accounting for the number of years it has been used.
Endorsement - Also called rider, this is a policy add-on that modifies the guarantees and coverage. Two popular endorsements are replacement cost (endorsement 43) and coverage for short term rentals and borrowed vehicles (endorsement 27).
Fault - Your degree of responsibility for an accident, determined according to a scale in the Direct Compensation Agreement.
Indemnity - The amount you receive to repair or replace your damaged vehicle.
Loss - Any event causing damage, from collision to broken windows.
Particulars - This is the section of the policy that lists the insured persons, the policy's effective period, the type of coverage, the vehicles covered, and the amount of your deductibles.
Premium - The amount you must pay the insurer for your insurance policy.
Section A - In Quebec, the Automobile Insurance Act requires all vehicle owners to take out a minimum of $50,000 in coverage from a private insurer. This is Section A of your policy. It covers any damage you may cause to the property of a third party in an accident that occurs in Quebec. It also covers physical damage and bodily injury caused to a third party in an accident occurring elsewhere in Canada or in the United States. Section A covers physical damage and bodily injury caused by off-road vehicles, but the Off-road Vehicles Act requires a minimum of $500,000 in civil liability coverage.
Section B - In addition to civil liability (Section A), you can also purchase insurance to cover physical damage to your vehicle. This is Section B of your policy and is not compulsory. If you decide to purchase Section B insurance, you have a number of options to choose from:
- All-perils: Covers any damage that may occur to your vehicle
- Collision or upset: Covers damage to your vehicle in accidents involving only yourself (e.g., a rollover) or in hit-and-run accidents
- Accidents without collision or upset: Covers multiple perils, specifically fire, theft, vandalism, and broken windshields
- Specified perils: Only covers the perils indicated in your policy, such as fire and theft
Home & Property Insurance at a Glance
All-perils Policy - A policy that covers your dwelling and its contents for all risks except those specifically excluded. This formula offers superior coverage.
Basic Policy - An insurance policy that covers your property and civil liability for a limited number of risks.
Deductible - The amount you must pay when you make a claim. For example, a $200 deductible on personal property means that you pay the first $200 and your insurer pays the balance.
Detached Structures (or outbuildings) - Any building that is separate from the main structure, such as a shed or detached garage.
Depreciation - The value given to an item after accounting for the number of years it has been used. The depreciation percentage varies by item category and is based on the item's normal use lifespan.
Dwelling - The house itself, as well as attached structures on the insured premises, permanent outdoor fixtures (e.g., a swing), and assembled car shelters. Also covered as part of the Dwelling are outdoor trees, shrubs, plants, and landscaping on the insured premises, but only for the following perils: fire, lightning, explosions, land or air vehicle impact, riot, vandalism, theft, and attempted theft. This coverage can be for up to 5% of the insured amount on the dwelling.
Endorsement - Also called rider, this is a policy add-on that modifies the guarantees and coverage, e.g., sewage backup or pool endorsement.
Exclusions - Any loss or peril that is not covered by home & property insurance, e.g., damage caused by war, terrorism, nuclear disasters, pollution, earthquakes, avalanches, landslides, flooding; damage to illegally acquired goods; loss due to criminal acts by the insured; damage occurring after the house has been vacant for more than 30 consecutive days.
Extended Policy - A policy that includes two types of coverage. The first applies to the dwelling and covers all perils except those specifically excluded in the policy. The second covers the contents (personal property), but only for a limited number of perils.
Guarantees or Coverage - The insurer's commitment to take responsibility for the perils indicated in the policy and to compensate you should an insured peril occur. The extent of the coverage depends on the type of insurance you choose. There are three formulas: basic, extended, and all-perils.
Indemnity - The amount you receive to repair or replace damaged property.
Liability Insurance - Personal protection against prosecution for any unintentional injury or damage that you accidentally cause to another party or another party's property through negligence.
Limit - The maximum amount you can receive for a given item in case of loss. All insurance policies include their own specific limits. The following limits are the Insurance Bureau of Canada's recommended minimums on home & property insurance forms for Quebec.
- Animals: $1,000 to $2,000
- Boats: $500 to $1,000
- Cash and precious metals: $100 to $200
- Garden tractors, trailers: $5,000
- Securities: $500 to $1,000
- Software: $500 to $1,000
- Theft - coin collections: $100
- Theft - jewelry, furs: $1,000 to $2,000
- Theft - paper products/stamps: $500
- Theft - silver or gold: $5,000
- Theft - bicycle : $ 500 to $ 1 000
Loss - Any event causing damage.
Particulars - This is the section of the policy that lists the insured persons, the policy's effective period, the amount of insurance, the items covered, and the amount of your premiums.
Personal Property - All chattels that you own or use and are normally found in a home. Personal Property insurance also covers the property of students registered under the policy and temporarily living outside the home, as well as some items such as motorized wheelchairs, boats, trailers, and garden equipment.
Premium - The amount you must pay the insurer for your insurance policy.
Property Insurance - The part of a policy that covers a building, personal property, outbuildings, etc.
Replacement Cost - Insurance that lets you replace a damaged item with a new, comparable item without deducting depreciation.
Sanitary Facilities - Pipes, devices, and equipment from their point of connection to a public or private system that supplies your home with running water and receives wastewater from it (e.g., bath, toilet, pipes).