Insurance Contributions
As trustee of the Fonds d'assurance automobile du Québec (Québec's automobile insurance fund), the SAAQ determines the amount of the insurance contributions to be collected in order to sustain the fund, which serves, among other things, to provide compensation to traffic accident victims.
What is the purpose of insurance contributions?
Insurance contributions serve to sustain the automobile insurance fund. Through this fund, we are able to compensate traffic accident victims and conduct road safety prevention and awareness activities.
How are contributions to the fund collected?
Contributions to the fund are collected from driver's licence and vehicle registration payments.
Concrete example of insurance contributions in the case of a driver's licence
In 2026, the total cost for renewing a Class 5 (passenger vehicle) driver's licence is $120.67 (unless the licence holder has demerit points entered in their record!).
Of this total amount, $93.92 (including the 9% sales tax paid to Revenu Québec) represents the insurance contribution allocated directly to the fund.
The remaining amount includes a $5.45 administrative fee and a $21.30 duty paid to the Ministère des Finances.
It should be noted, however, that in 2026, holders of a Class 5 (passenger vehicle) and Class 6 (motorcycle) licence – regular driver's licence, probationary licence or restricted licence—get a 75 % rebate on the insurance contribution when their licence is issued or renewed. These licence holders only have to pay the duties, administration fees and 25 % of the insurance contribution, in addition to amounts stemming from any accumulated demerit points.
If you do not have any demerit points entered in your driving record, your driver’s licence will cost you $50.23 in 2026.
Concrete example of insurance contributions in the case of vehicle registration
In 2026, the total cost for renewing the registration of a passenger vehicle is $217.41 or $247.41 (if you live in a municipality with public transit), or $400.86 for residents of the Communauté métropolitaine de Montréal, who must pay a passenger vehicle registration tax.
Of this total amount, $71.96 (including the 9% sales tax paid to Revenu Québec) is allocated directly to the fund.
The remaining amount includes a $5.45 administrative fee, a $140 duty paid to the Ministère des Finances, the contribution to public transit, and the passenger vehicle registration tax, where applicable.
Since January 1, 2025, owners of passenger vehicles registered in the cities of Sherbrooke, Gatineau and Québec and the MRC de la Rivière-du-Nord are also required to pay a passenger vehicle registration tax.
To estimate the amount you will have to pay to renew your driver’s licence or motorcycle registration, you can use the following calculation tools:
What makes the insurance contribution amounts vary?
Contributions to the automobile insurance fund are mainly influenced by three factors: the total number of claims filed for traffic accident victims (whether due to death, serious injury or minor injury), the amount paid in compensation, and the number of driver’s licence holders and vehicle owners who pay insurance contributions.
When there is an increase in the number of indemnities being awarded and greater amounts are being paid in compensation to accident victims or their loved ones, insurance contributions inevitably go up.
Conversely, when the road safety record improves and other key factors come together, insurance contributions go down.
How are insurance contributions determined?
Insurance contributions are determined under the Regulation respecting insurance contributions made under Québec's Automobile Insurance Act.
To determine the amount of these contributions, we must first consult the Panel of Experts on Automobile Insurance Contributions .
The Panel of Experts must hold a public consultation to seek public opinion on the proposed amendments to insurance contributions. Following the consultation, the Panel of Experts tables its recommendations with the SAAQ.
The Panel of Experts in brief
The mandate of the Panel of Experts is established under sections 17.6 and 17.7 of the Act respecting the Société de l'assurance automobile du Québec (CQLR, c. S-11.011). Its members are appointed by the Government of Québec.
As part of its mandate, the Panel of Experts reviews the approach taken by the SAAQ and checks the data used in support of the proposed amendments to insurance contributions. Before issuing its opinion, the Panel of Experts is required to hold a public consultation.
Insurance Contributions for 2025-2027
The SAAQ’s proposal was presented to the Panel of Experts on Automobile Insurance Contributions in a document entitled Proposed Insurance Contributions for 2025-2027. This document was analyzed by the Panel of Experts, who held public consultations and made recommendations to the SAAQ. The new insurance contributions are in effect from January 2025 to December 2027.
Frequently Asked Questions
To know more about the insurance contributions for 2025-2027, read the frequently asked questions below.
General questions regarding insurance contributions
The insurance contribution paid when renewing a driver’s licence or vehicle registration represents the cost of insurance coverage for bodily injury in the event of a traffic accident. Insurance coverage may include fees for professional health care providers, income replacement, medication, and expenses to adapt a vehicle or a home, for example.
The insurance contribution for a driver’s licence may vary depending on the licence class you hold. For example, the amount you have to pay is different if you have a Class 5 (passenger vehicle) or Class 6 (motorcycle) licence. The number of demerit points in your record also affects the amount of your insurance contribution.
The insurance contribution for vehicle registration varies depending on the category to which your vehicle belongs. Each vehicle category is associated with different accident risks and compensation costs. You must therfore pay the compensation costs generated by each category of vehicle you register.
Contributions are determined on the basis of risk, that is, on the number of people killed or injured and the cost to compensate victims in the various categories.
For example, the insurance contribution is higher for the motorcycle category than for the passenger vehicle category, because there are proportionally more fatalities and injuries in the motorcycle category. Furthermore, there are fewer motorcycle owners than passenger vehicle owners. As a result, there are fewer people to share insurance contribution costs in this category.
Insurance contributions are calculated based on the road safety record, among other things. As a result, insurance contributions could decrease if the number of victims killed and injured goes down. Likewise, it could increase if the number of victims killed or injured in a given category goes up.
Questions specific to the insurance contributions for 2025-2027
Various amendments have been proposed for the insurance contribution:
- recognizing the driving experience of motorcyclists
- creating four new categories for commercial vehicles bearing F licence plates
- determining a contribution that reflects the current reality for vehicles used for remunerated passenger transportation
We have proposed three different groups for holders of Class 6 driver’s licences based on driving experience:
- less than three years
- from three years to less than five years
- five years or more
Each group has a different risk profile. We did not create any groups for drivers with more than five years of experience, as the data does not demonstrate any significant differences between the risk of accident for a motorcyclist with 5 years of experience and another with, for example, 15 years of experience.
Motorcyclists with five or more years of driving experience will pay a lower insurance contribution rate on their vehicle registration than a motorcyclist with less than three years of experience.
Further to a more in-depth analysis of the risk of accident for commercial vehicles bearing F licence plates, several key groups were identified.
It was therefore decided to divide the current class of commercial vehicles into four categories, so that each new category of vehicle pays an insurance contribution in line with the risk of accident it represents. The categories are:
- a new category for emergency vehicles including emergency vehicles recognized by the SAAQ, police and fire vehicles, ambulances and tow trucks;
- a new category for motor homes;
- a new category for passenger vehicles used for commercial purposes;
- a new category for all other commercial vehicles bearing F licence plates.
A transitional insurance contribution was set for 2022 to 2024, which was equivalent to the insurance contribution of minibuses transporting passengers. The data collected since the last review better reflects the new reality of this industry and allows the SAAQ to set an appropriate insurance contribution amount. As a result, the insurance contribution will be gradually adjusted as of 2025 in order for this vehicle category to be fully funded in 2028.
The SAAQ also intends to introduce, by 2028, a insurance contribution based on the number of trips made per year for vehicles authorized to provide remunerated passenger transportation.
Last update: December 16, 2025