Why I’m Seeing So Many Increases in 2026
Since January, I’ve seen it almost daily with my clients at Prêt Auto Québec: they find a vehicle that fits their budget, we put together a reasonable financing scenario... and then the insurance throws a wrench in the works. And it’s not just a small amount. Sometimes it’s $40, $80, or even $150 more per month than they expected.
And no, it’s not just "because everything is more expensive." That’s the easy answer. On the ground in Quebec, premiums are rising for very specific reasons: the price of parts, onboard technology, theft, weather-related claims, the cost of bodywork repairs, and a risk profile that insurers are increasingly less willing to tolerate.
I’ll be direct: in 2026, car insurance has become a central piece of the automotive budget. Before, many buyers focused mostly on the monthly loan payment. Today, if you aren't calculating the vehicle with the insurance, you’re making a mistake.
In my office, I’ve made it a habit to talk about insurance from the very first minutes, just as much as the rate, the term, and the down payment. It has become unavoidable.
What Is Actually Changing in Quebec
In Quebec, we have a unique feature: the SAAQ covers bodily injuries through the public regime. That protects people in case of injury, regardless of who is at fault. But for property damage, theft, fire, vandalism, collisions, and additional coverage, we remain in the private sector. And that is where premiums are climbing.
The Cost of Repairs Has Exploded
Five or six years ago, a damaged bumper was often considered a "minor accident." Today, on many 2024, 2025, and 2026 models, that bumper hides sensors, cameras, and sometimes radars for braking assistance, lane keeping, or adaptive cruise control. The result: a repair that cost $1,200 can easily jump to $2,500, $3,500, or even more.
I saw this recently with a client from Laval, let’s call him Mathieu. He was looking at a well-equipped, very clean compact SUV—nothing extravagant. His financing was approved, around 8.99% over 72 months, which remains in the range we still see in 2026 for an average to decent file on a recent used vehicle. The payment worked. But the insurance? Much higher than on a comparable, less technological model. The difference wasn't in the engine or the prestige. It was in the cost to restore the vehicle after a mundane fender-bender.
This is exactly the kind of detail many sites forget to explain.
Auto Theft Doesn’t Just Affect Montreal
Yes, Montreal remains a hot spot. Yes, certain sectors of the North Shore, Laval, Longueuil, and even the Outaouais are of greater concern to insurers. But I’m noticing the perception is shifting: companies no longer look only at the city; they look at the model, the trim level, anti-theft systems, parking location, usage, and even claim habits.
Some SUVs and pickup trucks remain particularly targeted. A popular vehicle, easy to export or strip for parts, can cost much more to insure than another of similar value. It’s frustrating, but it’s the reality.
My advice? Too many people still shop "based on emotion" without making two insurance calls first. In 2026, that’s a costly mistake.
Quebec Winters Don’t Help, and Insurers Know It
We live here with real seasons. That sounds simple, but it has a huge impact on claim frequency. Freezing rain, storms, potholes, spring hail, intense summer rain, freeze-thaw cycles… it all ends up in the statistics.
And in Quebec, we also have the winter tire law from December 1st to March 15th. It’s a good thing—I’m 100% in favor—but it doesn’t make accidents disappear. It reduces certain risks, yes, but it doesn’t erase pileups on Highway 20, sliding off the road in Lanaudière, or parking lot bumps when 25 cm of snow falls in one night.
Insurers compile everything. When claim frequency rises and the average cost per file increases, premiums follow. It’s mechanical.
Vehicle Replacement Costs Are No Longer “Normal”
Even if the market has calmed down since the peak shortage we experienced after 2021-2022, vehicle prices remain high in 2026. A well-equipped new compact SUV can easily range between $38,000 and $48,000 before financing. A full-size pickup? You often exceed $60,000, $70,000, and sometimes much more.
Add Quebec taxes—GST and QST—and the real bill adds up quickly. A $40,000 vehicle becomes approximately $45,975 with taxes included. If the insurer has to indemnify a total loss or pay for major repairs on a high-value base, it has a direct consequence on premiums.
Credit Also Plays a Role, Even If Many Don't Realize It
I’ll add a nuance: not all companies use the same criteria, and credit in insurance is regulated differently depending on the products and consents. But in practice, the overall financial profile and client stability often influence the risk picture.
When I help someone with a more fragile file, I already know we’ll need to think about insurance early in the process. A client emerging from a consumer proposal, bankruptcy, or one who has had several refusals doesn’t just have a financing issue; they often have to juggle a tighter budget, higher deductibles, and sometimes limited vehicle choices to keep a premium acceptable.
That’s exactly why I talk about it openly with people exploring auto financing in Quebec. The loan payment means nothing if you’re missing $120 a month for insurance.
A Concrete Budget Demonstration
Let's take a simple example.
A recent used vehicle at $27,995 Including Quebec taxes: approximately $32,186 Down payment: $2,000 Financed amount: approximately $30,186
If we finance over 72 months at 9.49%, the monthly payment is around $545 to $555 depending on fees and file structure.
Now, let's add insurance:
- Experienced driver, clean record, semi-urban region: approximately $95 to $135/month
- Younger driver or higher-risk neighborhood: $160 to $260/month
- More frequently stolen or more expensive to repair vehicle: sometimes $250 to $350/month
The real monthly cost is therefore not $550. It can be $680, $780, or over $900.
That’s where many hit a wall.
New Models Are More Expensive to Insure, Even When They Are “Safer”
This may seem contradictory. I’m often told: "But this model has more driving aids, it should cost less to insure, right?" Not necessarily.
Yes, certain features reduce the risk of collision. But when a collision does occur, the repair is more expensive. A camera in the windshield, a radar in the grille, a sensor in the corner of the bumper, matrix LED lighting systems... all of that must be replaced or recalibrated. And labor in Quebec hasn't gone down, far from it.
In the 2026 Quebec auto market, I find this effect is still underestimated. Many buyers want the "nice package" with all the options—which I fully understand—but they forget that a more sophisticated vehicle isn't just more expensive to buy, it’s also more expensive to protect.
An Anecdote That Well Summarizes 2026
A few weeks ago, I spoke with Karine, a single mother from Trois-Rivières. Very good recent payment record, but a tight budget with groceries, rent, and kids' activities—in short, real life in 2026. She wanted an intermediate SUV because she felt it was more reassuring in winter.
On paper, we reached something decent. But when she called for insurance quotes, she returned discouraged. The targeted model cost her almost $90 more per month than a more discreet hatchback, easier to park, less coveted, and cheaper to repair. We redid the numbers together. She chose the most rational option, and honestly, I think she made the right decision.
It’s not always pleasant to hear, but my job isn't to say yes to everything. It’s to help my clients make a sustainable decision.
Where People Go Wrong Most Often
I’ll be frank. The mistakes I see most often are almost always the same.
1) Choosing the vehicle before checking insurance
Do the opposite. Shop for the vehicle with two or three insurance quotes in parallel. Not after.
2) Focusing only on the interest rate
In 2026, rates still vary significantly depending on the file, vehicle, year, and lender. To give you a realistic idea, excellent credit can sometimes see promotional new car rates around 5.49% to 7.49%, while a more ordinary used file is often around 8.99% to 12.99%. With more difficult credit, it can climb well beyond that.
But even a good rate can become secondary if the insurance premium explodes.
3) Taking too long a term to “make the budget pass”
Yes, stretching it to 84 or 96 months can lower the monthly payment. But if you add a high insurance premium for years, you end up with a very heavy total cost. I often prefer to recommend a slightly more modest, better-insured vehicle than to push a client toward an artificially low payment over an overly long duration.
A Word From Our Expert
My pro advice is simple: even before submitting an official application, choose three specific vehicles and call the insurer with the VIN or at least the exact year, make, model, and trim.
Not just "a Honda CR-V" in general. Not "an F-150" without details. A precise version.
Why? Because two almost identical-looking vehicles can have a $60 or $100 difference per month in insurance. Between all-wheel drive, a more equipped trim, a model more targeted by theft, or more expensive parts, the difference is sometimes major.
If you are in the process of buying, I even advise you to use a calculator to create a complete budget including financing + insurance + gas + registration + winter tires. Yes, winter tires are mandatory from December 1st to March 15th, but in my opinion, in Quebec, we should plan for them in the budget from the autumn, not at the last minute.
What I Recommend in Practice to My Clients
At Prêt Auto Québec, my approach is quite down-to-earth.
I often recommend:
- a model known for reliability, with reasonable parts costs
- a vehicle value consistent with the household’s actual income
- a deductible that can be absorbed without panicking
- a financing term that doesn't unnecessarily exceed the "comfortable" lifespan of the vehicle
I much prefer a client driving something simple, well-financed, and well-insured than a client who is "impressed" for three months and stressed for six years.
And for those with a more complicated credit file, you need to be even more strategic. If you are rebuilding, talking about past late payments, a discharged bankruptcy, or a thin history, we must think about the whole file: financing, vehicle, insurer, down payment if possible, and actual payment capacity. In some cases, a 2nd chance auto credit can work very well—provided you don’t sabotage the budget with a vehicle that is too expensive to insure.
Deadlines, Approvals, and the Reality on the Ground in 2026
Regarding timelines, I still see a lot of confusion. A financing approval can happen fast—sometimes in a few hours, sometimes the same day, often between 24 and 48 hours depending on the file. But just because the loan is approved doesn't mean the deal is done.
The step where everything is often decided is validating the total cost. If you have already started looking at our inventory or if you are thinking about filling out an application, my advice is to prepare your insurance questions at the same time. That’s how we avoid unpleasant surprises.
And I say it without beating around the bush: in 2026, the winning client isn't the one who just finds "the most beautiful car." It’s the one who understands their full budget before signing.
What I Think for the Future
In my opinion, car insurance premiums in Quebec will not decrease significantly in the short term. Perhaps we will see adjustments here and there if theft decreases and if supply chains remain more stable. But the root of the problem remains: vehicles cost more, repairs do too, and climate events won’t disappear.
So no, I wouldn’t bet on a return to premiums "like before." I would bet on better purchasing decisions.
If you are ready to shop for a vehicle and want someone who will talk to you frankly about the payment and the insurance, write to us. My team at Prêt Auto Québec does this every day. We can look at your situation, your real options, and build something that stays on the road, not just on paper.