In the second quarter of 2025, Quebec consumers are once again seeing a significant increase in the cost of their auto and home insurance. According to the Applied Rating Index Q2 2025 report, Quebec recorded an average 13.7% increase in auto insurance premiums compared to the same period last year, and a 10.1% increase for home insurance. 

These increases place Quebec among the provinces most affected by rising insurance premiums in Canada. 

📈 Higher Increases than the National Average

Across Canada, auto insurance premiums rose an average of 14.9% year-over-year, while home insurance premiums increased by 6.9%. 

By comparison, Quebec shows a mixed trend: 

• Auto insurance: +13.7%, slightly below the national average.
• Home insurance: +10.1%, well above the national average (+6.9%). 

Source: Applied Rating Index – Q2 2025 

 

Source: Applied Rating Index – Q2 2025 

 

Several factors, outlined below, explain the sharp increases in insurance premiums in Quebec. 

🚗 Auto Insurance: A Market Under Pressure

The continued rise in auto insurance premiums in Quebec is the result of a combination of converging dynamics: 

1. Increasing frequency and cost of climate-related claims: Floods, severe thunderstorms, wildfires, and tornadoes regularly hit Quebec, driving up both the number and the cost of claims. These events force insurers to raise rates through risk adjustments that take this new climate reality into account.
2. Rising vehicle theft: Quebec is not spared from this trend, and insurers are compelled to increase premiums to offset significant losses caused by theft.
3. Sharp increase in the value of new vehicles: The median cost of new cars in Canada has surged by 69% since 2019. Higher vehicle values mean higher replacement and repair costs, directly impacting premiums.
4. Tightening reinsurance market: To protect themselves against massive losses, insurers must purchase more expensive “reinsurance” coverage. This added cost is passed on to consumers.
5. General inflation & complexity of modern vehicles: Rising labor costs, sophisticated parts (sensors, electronics), and structural inflation make repairs more expensive.
6. Increase in fraud and number of claims: Accident and theft claims are on the rise, and even customers with no prior claims often see their premiums increase due to the overall rise in market risk. 

🏠 Home Insurance: Quebec Leads in Premium Increases

The average 10.1% year-over-year increase in Quebec home insurance premiums reported in the Applied Rating Index Q2 2025 is not a mere seasonal adjustment: it reflects structural pressures that have been building for several years. 

1. High cost of materials and labor: Since the pandemic, construction materials have experienced significant inflation. Prices for key products such as lumber, drywall, shingles, and paint remain high compared to pre-2020 levels. On top of this, there is an ongoing shortage of skilled labor in the construction and renovation sector, driving up post-claim repair costs.
2. Increased frequency of extreme weather events: Floods, storms, high winds, tornadoes, and wildfires… Quebec faces a growing number of severe weather events, often concentrated into short but intense periods. These phenomena result in more claims, both in number and in average cost per incident.
3. Rising costs of water damage claims: Water damage from sewer backups, leaks, or burst pipes has become one of the most frequent and costly causes in home insurance. Insurers adjust rates to account for this recurring risk, especially in densely populated urban areas.
4. Higher replacement value of homes: With rising real estate prices in Quebec and increasing construction costs, the insured replacement value of a home has risen significantly. Even without a claim, this reassessment automatically drives premiums higher. 

💡 Saving Money Even When Prices Rise

In Quebec, insurance premiums, whether for auto or home, continue to climb year after year. Inflation, rising repair costs, asset values, the surge in climate-related claims, and other factors keep constant upward pressure on rates. Data from Q2 2025 confirms that this trend is not about to reverse, and everything suggests it will persist, if not intensify, in the coming years. 

In this reality, the best strategy to avoid bearing the full brunt of these increases is simple: shop around for insurance every year on ClicAssure. Too many consumers still accept their insurance renewal without checking for better options. Yet, comparing auto and home insurance premiums via ClicAssure often results in significant savings, even when rates are generally rising. 

In just a few minutes, Quebecers can receive multiple quotes from partner insurers and choose the most advantageous coverage. Don’t blindly accept your renewal : go through ClicAssure to ensure you’re getting the best price year after year.