Commercial Vehicle Insurance

What is a commercial vehicle?

In Quebec, a commercial vehicle refers to any motor vehicle used primarily for commercial or professional purposes. Unlike a passenger vehicle, it is used to transport goods, materials or equipment in the course of an economic activity.

IN BRIEF

Commercial Vehicle Insurance (Commercial)

Commercial utility vehicles (vans, vans, minivans) used for deliveries, construction sites or the transport of equipment must be insured on a commercial basis.

Personal difference: Your personal auto policy EXCLUDES commercial use. A commercial green plate (SAAQ) AND a commercial policy are mandatory as soon as the vehicle is used for your professional activity.

According to the Société de l’assurance automobile du Québec (SAAQ), commercial vehicles are classified according to their gross vehicle weight rating (GVWR), which directly influences registration, licensing and insurance requirements.

Commercial vehicle insurance differs from personal car insurance in the nature of the risks covered: heavy commercial use, transportation of valuables, liability to customers and third parties, and sometimes the presence of paid passengers.

Types of Commercial Vehicles Covered

Quebec insurers offer coverage for a wide variety of commercial vehicles. Here are the main categories:

For trucking companies, specific coverage is added depending on the type of goods transported and the distances travelled. Check out our guide to trucking insurance to learn more.

Mandatory coverage in Quebec

Quebec’s automobile insurance plan is unique in Canada. It combines a public plan (SAAQ) for bodily injury and mandatory private insurance for property damage. For a commercial vehicle, here is what is mandatory :

1. Civil liability (minimum $50,000)

Quebec law requires a minimum of $50,000 in civil liability, but for a utility vehicle, brokers strongly recommend a minimum of $2,000,000. In the event of an accident involving significant material damage (goods, road infrastructure, third-party vehicles), the legal minimum is largely insufficient.

2. Chapter A — Owner’s civil liability

This section of the insurance policy covers property damage caused to others by your commercial vehicle. It is mandatory to register any vehicle in Québec, whether personal or commercial.

3. Quebec Homeowners’ Insurance Form (Q.P.F.)

Your commercial vehicle insurance policy is governed by Q.P.F. No. 1 (civil liability insurance) approved by the Autorité des marchés financiers (AMF). The AMF regulates all insurance policies sold in Québec and ensures consumer protection.

Recommended Optional Coverages

Beyond the mandatory minimum, several additional coverages are strongly recommended for a commercial vehicle. These coverages fall under Chapter B of your policy (Q.P.F. No. 5).

Collision and Rollover

Covers damage to your own commercial vehicle in the event of a collision with another vehicle, a fixed object or in the event of an overpayment. Essential if your truck is financed or leased.

All risks (additional risks)

Protects against theft, vandalism, glass breakage, bad weather (hail, flooding), fire and animal impacts. Particularly relevant in Quebec where winter conditions can cause significant damage.

Contents and Equipment Insurance

Covers tools, materials, and specialized equipment carried in your vehicle. An electrician or plumber can have thousands of dollars worth of tools in their van — a must-have cover.

In-Transit Cargo Insurance

If you are transporting the goods of customers or third parties, this coverage protects against loss or damage to the goods during transport. Essential for delivery and trucking companies.

Replacement vehicle

Covers the rental of a replacement vehicle while yours is being repaired. For a business, every day without a commercial vehicle can represent significant revenue losses.

Replacement Cost

In the event of a total loss in the first few years, you receive the replacement value at replacement rather than the depreciated value. This is particularly advantageous for new commercial vehicles, which depreciate quickly.

Commercial Vehicle Fleet Insurance

If your business owns three or more commercial vehicles, it’s a good idea to purchase commercial fleet insurance. This type of policy groups all your vehicles under a single contract, with several benefits:

• Volume Discounts — Premiums are reduced through bundling
• Simplified management — One policy, one renewal date
• Flexibility — Easy addition or removal of vehicles during the year
• Uniform Coverages — Same Coverage for the Entire Fleet
• Experience Rating — Your claims history directly influences your premium

For fleets of taxis or transport vehicles, consult our specialized page on taxi fleet insurance. For your broader business needs, check out our comprehensive business insurance .

Factors that influence the cost of commercial vehicle insurance

The cost of commercial truck insurance in Quebec varies considerably from one company to another. Here are the main factors evaluated by insurers:

As a guide, insurance for a pickup truck used for business in Quebec typically costs between $1,500 and $4,000 per year, while a heavy-duty truck can easily exceed $5,000 to $12,000 depending on usage. A broker specializing in business insurance can get you the best rates by shopping around with several insurers.

How to save on your commercial vehicle insurance

Here are proven strategies to reduce your business insurance premiums without sacrificing your coverages:

1. Bundle your insurance

By combining your business insurance, commercial vehicle insurance and professional liability insurance with the same insurer, you can get discounts ranging from 10% to 20%.

2. Increase your deductible

Going from a $500 deductible to $1,000 or $2,500 can significantly reduce your annual premium. However, make sure you have the necessary cash flow in the event of a claim.

3. Invest in prevention

GPS systems, dash cams, anti-theft systems and driver training demonstrate to the insurer that you are actively managing your risks, which can result in premium reductions.

4. Maintain a good driving record

A loss-free history for several years is your best bet. Select your drivers carefully and require a clean driving record before hiring.

5. Use a broker

A commercial insurance broker has access to multiple insurers and can trade on your behalf. Their expertise often makes it possible to find savings that you would not find on your own. At Assur360, our broker partners shop for you.

Claims process in the event of a claim

In the event of an accident or claim involving your commercial vehicle, here are the steps to follow:

1. Secure the scene — Ensure the safety of all occupants and mark the area if necessary.
2. Call emergency services — Police (for report), ambulance if injuries are involved.
3. Document the damage — Take photos of the vehicle, the scene, and any visible damage. Write down the contact information of the witnesses.
4. Fill out the joint report — If both parties can agree, fill out the joint report of motor vehicle accident.
5. Contact your broker or insurer — Report the claim as soon as possible (ideally within 24 hours).
6. Get an estimate of the repairs — The insurer will appoint a claims adjuster to assess the damage.
7. Follow the process — Keep all receipts and keep a log of communications.

Frequently asked questions about commercial vehicle insurance

Protect your commercial vehicles today

Whether you own a single utility truck or an entire fleet, our commercial insurance broker partners are ready to help. They will compare offers from several insurers to find you the best coverage at the best price.

Do you have other needs? Explore our pages on business insurance, trucking insurance and restaurant insurance.