This section treats you when you cause other personal and material damage (outside Quebec). In accordance with the direct compensation agreement, this coverage applies to damage to your vehicle if you are not responsible for the accident. While injuries caused by a car accident are covered by Quebec automobile insurance, the owners of the vehicles involved in the accident are compensated (or not) by the private insurance companies that insure the vehicles. This allowance depends on the types of protection of the various insurance policies and the liability of the drivers concerned. In order to simplify and expedite claims resolution while reducing costs, the Automobile Insurance Act (R.S.Q., c. A-25) provides for a direct compensation system for insurers for policyholders. The agreement covers all property damage caused by an accident in Quebec in which at least two vehicles collided and the owners were properly identified. Each insurer compensates its own insured under the liability insurance on the basis of a degree of faultless liability and after an imobance contained in the direct compensation agreement. Any insured can challenge the liability transferred by the insurer. The agreement, which binds all active auto insurers in Quebec, also provides that insurers agree not to exercise their right of transgression among themselves. Your level of liability affects the amount you receive as compensation.
To determine the liability of their customers and calculate the compensation they will pay, Quebec insurers rely on the Direct Compensation Agreement (DCA). The rules for car insurance compensation are often misunderstood. We are taking a moment to shed some light on how auto insurance claims work in Quebec. Anyone injured in a car accident in Quebec is insured by Quebec`s public automobile insurance plan, the Quebec Automobile Insurance Plan. This program is referred to as ”no error” because compensation is determined regardless of driver liability. Victims are compensated by a public body, the Quebec Automobile Insurance Corporation, and not by a private insurance company. Under this system, neither individuals nor companies can pursue the cause of the accident. To determine the amount of your compensation, your insurer follows the guidelines of the DCA. This agreement is respected by all auto insurance companies and aims to simplify the processing of claims.