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.
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.
Contributions to the fund are collected from driver's licence and vehicle registration payments.
In 2023, the total cost for renewing a Class 5 (passenger vehicle) driver's licence is $121.45 (unless the licence holder has demerit points entered in his or her record!).
Of this total amount, $96.70 (including the 9% sales tax paid to Revenu Québec) represents the insurance contribution allocated directly to the fund.
The remaining amount included a $5.05 administrative fee and a $19.70 duty paid to the Ministère des Finances.
It should be noted, however, that in 2022 and 2023, holders of a Class 5 (passenger vehicle) and Class 6 (motorcycle) licence – other than learner drivers – get a break from having to pay the insurance contribution when their licence is issued or renewed. These licence holders only have to pay the duties, administration fees and, if applicable, the insurance contribution stemming from any accumulated demerit points.
Therefore, if you do not have any demerit points in your driving record, your driver’s licence will cost you $24.75 in 2023.
In 2023, the total cost for renewing the registration of a passenger vehicle is $202.74 or $232.74 (if you live in a municipality with public transit), or $277.74 for Montréal residents.
Of this total amount, $68.69 (including the 9% sales tax paid to Revenu Québec) is allocated directly to the fund.
The remaining amount includes a $5.05 administrative fee, a $129 duty paid to the Ministère des Finances, and the contribution to public transit, where applicable.
Contributions to the automobile insurance fund are mainly influenced by three factors: the total number of claims filed, 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.
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 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.
Our proposal was presented to the Panel of Experts on Automobile Insurance Contributions in a document entitled Proposed Insurance Contributions for 2022-2024. This document served as the basis for the public consultation. The Panel of Experts drew on the findings of the public consultation to issue its opinion in the following report (in French only): Avis du Conseil d’experts sur les contributions d’assurance proposées par la Société de l’assurance automobile du Québec pour les années 2022 à 2024. The insurance contributions for 2022-2024 came into effect in January 2022.
To know more about the insurance contributions for 2022-2024, read the frequently asked questions below.
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. 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, and each category must cover the compensation costs attributable to that category.
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.
The SAAQ has established new rates for the registration of three-wheel motorcycles to better represent the risk associated with this category.
New rates have also been established for motorcycle learner’s licences (Class 6). The insurance contribution for this class of licence has been increased since the associated risk is greater.
All of the demerit points entered in the records of holders of licences bearing both Class 5 and Class 6 are now taken into account in determining the insurance contribution that applies to motorcycle licences.
Lastly, a new insurance contribution for the registration of vehicles authorized to be used for remunerated passenger transportation has also been established. This insurance contribution is based on the rates applicable to buses weighing less than 10,000 kg.
Data on this type of vehicle have shown that the level of risk is not the same as for other types of motorcycles.
Given that three-wheel motorcycles are 4 to 5 times less likely to be involved in accidents than motorcycles with a cylinder capacity of 401 cc or more, the SAAQ has established a new rate category to recognize the risk associated with this type of vehicle.
Generally speaking, vehicles covered by this category must have been designed and manufactured with three wheels. These include the Spyder, T-Rex, Slingshot, etc. Since January 1, 2023, however, hand-crafted three-wheel motorcycles have also become eligible for this category.
One of the founding principles of the automobile insurance plan is that each category of contributor must pay its fair share of the compensation costs it generates.
When one group of insured individuals represents a risk that is lower than another group, the required insurance contribution is lower.
Recent statistics have shown that these licence holders are three times more likely to be involved in an accident than other groups of licence holders.
To reflect the risk they represent, the contribution applicable to their driver’s licence has been increased.
This change was made to ensure fairer treatment of motorcyclists who adopt safe behaviours. Whereas the SAAQ previously only took into consideration a maximum of 3 demerit points related to the operation of a motorcycle when establishing the insurance contribution, it now takes into account all demerit points, regardless of whether the points are related to the operation of a motorcycle or a passenger vehicle.
This amendment aims to encourage the adoption of safe behaviours, since it has been demonstrated that licence holders who have one or more demerit points, regardless of licence class, represent a greater risk whether they are operating a motorcycle or driving a car. The insurance contribution therefore reflects this risk.
For the first three years, the insurance contribution will be based on the contribution applicable to buses weighing less than 10,000 kg, given that the passenger transportation industry is undergoing massive changes. It will subsequently be determined based on actual data collected regarding vehicles authorized to be used for remunerated passenger transportation by automobile.
This insurance contribution will be collected upon authorizing vehicles to be used for remunerated passenger transportation.
Last update: March 2, 2023