Under the Automobile Insurance Act, the owner of a motor vehicle on Québec roads must hold a liability insurance contract of at least $50,000.
If this is a carrier, the minimum amount of liability insurance required is $1 million. If the carrier hauls hazardous materials, liability insurance of $2 million is required. A liability insurance policy, available through a private insurer, must guarantee compensation for property damage caused by a carrier.
In the case of off-road vehicles (including snowmobiles), minimum insurance of $500,000 is required. The Automobile Insurance Act generally does not make provisions for compensation for injuries sustained in an accident involving an off-road vehicle.
If you are involved in a traffic accident that causes more than $500 in damage to another party and you are not covered by insurance for property damage, your driver's licence or right to obtain a licence is automatically suspended.
The SAAQ will consequently prohibit operation of any motor vehicle in your name.
This suspension and prohibition to operate a vehicle will be repealed only when the SAAQ has proof of payment for damage or a guarantee to comply with the ruling rendered following the accident. You are also liable to be fined between $325 and $2,800. The fine for carriers is between $750 and $7,300, while off-road vehicle owners are liable to be fined between $250 and $500 for the same offence. Other fees may be added to the fine provided under the Highway Safety Code (contribution to the IVAC crime victims compensation program, registry fees, etc.).