FPQ 5 Replacement Insurance: Complete Guide 2026
The FPQ 5 replaces your new vehicle or an equivalent in the event of a total loss, with no deductible and no increase in premium on your car policy. Here are the exact rules for underwriting in Quebec, the eligible terms, the payment methods and what to check before signing.
What is FPQ 5 replacement insurance?
FPQ 5 — Quebec Protection Formula 5 — is a replacement insurance contract governed by the Autorité des marchés financiers (AMF). It is a stand-alone contract, separate from your FPQ 1 automobile insurance policy. In the event of a total loss (theft not found, fire, major accident), it allows you to recover a new vehicle from the current year — or an equivalent used vehicle — instead of receiving only the depreciated market value.
Without FPQ 5, your car insurer compensates you at the actual cash value. A $30,000 vehicle purchased three years ago can be worth $18,000 the day after an accident — the difference between this amount and the cost of an equivalent new vehicle is your responsibility. FPQ 5 makes up this difference for the entire term of the contract.
How FPQ works 5 step by step
The 6 benefits that make FPQ 5 unique
Replacement to new
You get a new vehicle from the current year, even after several years of use, as long as the term of the contract has not elapsed.
No deductible
The portion paid by FPQ 5 is in addition to that of your car insurer — the standard deductible is usually not retained from the replacement portion.
Protected car premium
As the contract is autonomous, the claim does not penalize your file with your car insurer.
New or used
Available for a new, demonstrator or pre-owned vehicle up to 10 model years — with a formula adapted to each situation.
Facilities covered
Winter tires, rust coating, carpets, remote starters: accessories installed by the dealer and included in the purchase price are covered.
Flexible payment
Premium payable in cash, in 3 installments, monthly (up to 60 months) or financed with the car loan — by credit card or bank withdrawal.
FPQ 5, Amendment 43A, Amendment 43D: What are the differences?
Three types of coverage coexist in Quebec to avoid loss of value in the event of a claim. They are not substitutes for each other — here’s how to tell them apart.
| Feature | FPQ 5 | Endorsement 43A | Endorsement 43D |
|---|---|---|---|
| Contract Type | Standalone Endorsement | to Auto Policy | Endorsement to Auto Policy |
| Duration | 24 to 84 months depending on the vehicle | Depending on the age of the vehicle (often 24 months / 40,000 km) | 24 to 60 months, fixed |
| Eligible vehicles | New, demo and used up to 10 years | New only | New and used |
| Claim impact | None on your car policy | Can affect your history | Can affect your history |
| Premium Payment | Cash, 3 instalments or monthly (up to 60 months) | Spread over annual premium | Spread over annual premium |
| Cancellation possible | Yes, with prorated refund | Yes, by amending the policy | Yes, by amending the policy |
| Long-term rental | Compatible | Not | compatible |
FPQ Underwriting Standards 5
To be eligible for the FPQ 5 contract, the vehicle and the subscriber must comply with specific rules, dictated by the Program’s underwriting standards.
✅ Eligibility criteria
- Private passenger vehicle insured by a valid FPQ 1 policy
- Insured named resident of Quebec at the time of application
- Model year 10 years or newer
- New, demo or used vehicle
- Purchased, financed or leased from an authorized dealer, OR already owned by the named insured
🧮 Basis for calculating the premium
The bonus is calculated solely on the purchase price of the vehicle described, excluding taxes.
Excluded from the price are: extended warranties, warranty contracts, other insurance products, negative balance (“balloon”) and any similar items. Equipment and accessories installed by the dealer and included in the purchase price are eligible.
Definitions: new vehicle vs. used vehicle
The classification of the vehicle determines the maximum duration of the contract and the method of establishing the insured value. The definitions of the Program are as follows.
🚗 New Vehicle
Vehicle with a purchase price of $150,000 or less, purchased, financed or leased from a licensed dealer in the last 120 days, current model year or previous model year, never registered or plated in the name of an owner.
Or a demo vehicle of the current or immediately preceding model year, with less than 15,000 km of driving and registered only in the name of the authorized selling dealer.
🚙 Used vehicle
A vehicle that has been previously owned, registered or put into service and that is not new at the time of purchase, of a model year of 10 years or newer, with a purchase price of $150,000 or less, and that is:
- purchased by private sale ;
- Purchased “new” from a licensed dealer more than 120 days ago.
- or purchased from a licensed dealer for more than 60 days.
How the value of the vehicle is determined
At the time of application, the insured value is determined according to the type of vehicle and the purchase channel.
| Location | Source of value |
|---|---|
| New Vehicle (as defined above) | Value indicated on the sales contract |
| Used vehicle — purchased/financed/leased from a licensed dealer ≤ 60 days | Purchase price indicated in the contract of sale |
| Used vehicle — at a dealership with a 60>day license | Value listed on AutoTrader or equivalent |
| Used vehicle — purchased by private sale | Value listed on AutoTrader or equivalent |
Eligible Coverage Periods
The maximum duration of the contract depends on the type of vehicle and its purchase price (excluding taxes). Here is the official schedule.
| Vehicle | TypePurchase price / model | yearQualifying terms |
|---|---|---|
| New or demo | $10,000 to $150,00024 | , 36, 48 or 60 months |
| New or demo | $10,000 to $120,000Possible | extended terms: 24, 36, 48, 60, 72 or 84 months |
| Used | : Model Years 1 to 9 | ,24, 36, 48, 60, 72 or 84 months |
| Used | : Model Year 10 | , 24, 36, 48 or 60 months |
How much does it cost? (indicative prices 2026)
The price of FPQ 5 depends on three factors: the value of the vehicle, the length of the contract , and the driving history. Here are ranges observed in Quebec in 2026, for information purposes only — only a broker can establish your actual price.
| Value of the vehicle | 36-month | contract48-month | contract60-month contract |
|---|---|---|---|
| $25,000 to $35,000600 | to $900750 | to $1,100 | $900 to $1,400 |
| $35,000 to $50,000900 | to $1,3001,100 | to $1,6001,300 | to $1,900 |
| $50,000 to $75,0001,300 | to $1,8001,600 | to $2,2001,900 | to $2,600 |
| Over $75,000Custom | Custom | Custom |
These amounts are provided for information purposes only — note that 2026 car rates are rising throughout Quebec, which also influences the FPQ 5 premium. They are neither an offer nor a contractual commitment. The actual premium is set by the insurer based on your file and the vehicle. The provincial sales tax on insurance products (QST 9%) is added to each policy.
Available payment options
The FPQ 5 premium can be paid under several terms and conditions. You choose at the time of subscription.
Full payment
A single payment at the time of subscription. The simplest formula, often financed with a car loan.
3 installments
Payment split into three instalments, interest-free.
Monthly payments
Spread of the premium from 24 to 60 months. The 72 and 84 month contracts are payable over a maximum of 60 months.
Accepted Modes
Payment by credit card or direct debit. A 2.5% fee applies for credit card payments.
Steps to an FPQ 5 Claim
💡 The broker’s advice
Always check the exact wording of the contract before signing: some FPQ 5 replace new for the first 24 months and then switch to an equivalent model, others offer the value of a new vehicle for the entire term. The difference can be several thousand dollars at the time of a total loss. Ask for the degradation chart before purchasing.
End of coverage
The FPQ 5 policy terminates in one of the following six cases:
Natural end of the chosen term (24 to 84 months).
The contract is terminated as soon as compensation is paid.
When the vehicle described is sold by the named insured.
If the use of the vehicle falls within the exclusions of the FPQ 5 contract (commercial use, paid carpooling, etc.).
Termination at any time by written notice, prorated refund.
The policy ceases to have effect if the premium remains unpaid.
Vehicles not eligible for FPQ 5
⚠️ The FPQ 5 contract cannot be issued for:
- vehicles registered for commercial purposes or priced for commercial use (classes 33, 35, 36, 43 and 44);
- Public vehicles: ambulances, buses, driving school vehicles, funeral vehicles, government or municipal service vehicles (including police and fire vehicles);
- vehicles used for paid ride-sharing (Uber, Lyft or similar service);
- vehicles with a gross weight of 4,500 kg or more ;
- collector’s or vintage vehicles.
What FPQ 5 does not cover
Common Exclusions from Coverage
- Small claims — FPQ 5 is only activated in the event of a total loss or theft not recovered.
- Vehicles that are poorly maintained or have undergone undeclared modifications.
- Damage caused by driving without a valid licence or while intoxicated (exclusion of FPQ 1, therefore no FPQ 5 coverage).
- Registration fees, adjusted taxes, options installed after the subscription not declared to the insurer.
- Extended warranties, warranty contracts, negative balances (“balloon”) and other products: these amounts are excluded from the purchase price used to calculate the premium and are not covered.
Contract conditions
🚫 Non-renewable
The policy is not renewable at maturity. A new policy must be purchased if you wish to extend coverage on a vehicle that is still eligible.
🔒 Non-transferable
The policy is not transferable to another vehicle. It is related to the vehicle described — if you change it, you must purchase a new policy.
🧾 Provincial tax
The provincial sales tax on insurance products (QST 9%) is collected on each policy and is added to the premium displayed.
📊 Uniform pricing
No deviation from the Program rates is permitted: any rate changes must be pre-approved by the insurer.
Replacement insurance throughout Quebec
The FPQ 5 is available throughout Quebec. Our partner firms serve Montreal, Laval, Quebec City, Sherbrooke, Trois-Rivières, Longueuil, Gatineau and Saguenay. Regardless of the region, the coverage is the same — the contract is governed by the same AMF rules for all Quebec residents.
Why Compare with Assur360
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More than 100,000 Quebecers have been supported since our inception to compare and shop for their car coverage.
Our brokers are subject to the Code of Ethics of the Chambre de l’assurance.
Several insurers consulted — you see the real differences in prices and coverage.
Frequently Asked Questions about QPF 5
Does replacement insurance replace my car insurance?
Does it work for all cars?
Can I have two replacement insurances?
What is the maximum age of the vehicle to take out an FPQ 5?
Can I take out an FPQ 5 for a used vehicle?
What are the premium payment options?
Is the FPQ 5 renewable at maturity?
Can I transfer my FPQ 5 to a new vehicle?
What happens if I sell my vehicle before the end of the contract?
Do I have to take out replacement insurance?
Can I purchase an FPQ 5 outside of the dealership?
Does FPQ 5 cover a long-term rental vehicle?
What vehicles are excluded from FPQ 5?
Who regulates FPQ 5 contracts in Quebec?
Ready to protect the value of your car?
Compare the FPQ 5 contracts available in Quebec in minutes. A certified broker accompanies you, free of charge and without obligation.
