Public Automobile Insurance Plan

Insurance Contributions

As trustee of the Fonds d'assurance automobile du Québec (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 prevention and road safety 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 2021, the total cost for renewing a Class 5 (passenger vehicle) driver's licence was $87.28 (unless the licence holder had demerit points!).

Of this total amount, $63.93 (including the 9% sales tax paid to Revenu Québec) represented the insurance contribution allocated directly to the fund.

The remaining amount included a $4.75 administrative fee and a $18.60 fee paid to the Ministère des Finances.

Concrete example of insurance contributions in the case of vehicle registration

In 2021, the total cost for renewing the registration of a passenger vehicle was $230.43 ($275.43 for Montréal residents).

Of this total amount, $73.67 (including the 9% sales tax paid to Revenu Québec) represented the insurance contribution allocated directly to the fund. 

The remaining amount included a $4.75 administrative fee, a $122 fee paid to the Ministère des Finances, and a $30 contribution to public transit ($75 for Montreal residents).

What makes the insurance contribution amounts vary?

Contributions to the automobile insurance fund are mainly influenced by three factors: the total number of claims submitted by automobile accident victims (deaths, serious injuries, minor injuries), the severity of the injuries sustained by these accident victims, and the number of driver’s licence holders and vehicle owners paying 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 are in place, 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 and checks the data used in support of the amendments to insurance contributions proposed by the SAAQ. Before giving its opinion, the Panel of Experts is required to hold a public consultation.

Proposed Insurance Contributions for 2022-2024

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 provide its opinion through 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 new insurance contributions are expected to come into effect in January 2022.

 

 

Frequently Asked Questions

To know more about the insurance contributions proposed by the SAAQ for 2022-2024, read the frequently asked questions below.

General questions regarding insurance contributions

What does the insurance contribution paid when renewing a driver’s licence or vehicle registration represent?

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.

Why does the insurance contribution applicable to a licence vary from one person to the next?

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.

Why does the insurance contribution applicable to vehicle registration vary from one person to the next?

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.

How are insurance contributions calculated?

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.

Could the amount of the insurance contribution go down in the future?

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 goes up.

Questions specific to the proposed insurance contributions for 2022-2024

What are the main amendments announced in the SAAQ’s proposal?

The SAAQ has proposed establishing new rates for the registration of three-wheel motorcycles to better represent the risk associated with this category.

Likewise, new rates are proposed for motorcycle learner’s licences (Class 6). Contributions would be higher since the risk is greater.

The SAAQ has also proposed taking into account all demerit points entered on the record of holders of licences bearing Class 5 and 6 to determine the insurance contribution applicable to the licence to operate a motorcycle.

Lastly, new rates of insurance contributions for vehicles authorized to provide remunerated passenger transportation are proposed. The rates are based on the rates applicable to buses weighing less than 10,000 kg.

Who will be affected by the amendments?

  • Holders of licences with Classes 5 and 6
  • Holders of licences with Class 6 only
  • Holders of Class 6R and 6A learner’s licences
  • Owners of three-wheel motorcycles
  • Owners of vehicles that are authorized for use to provide remunerated passenger transportation

Why will owners of three-wheel motorcycles benefit from a significant reduction in the insurance contribution applicable to vehicle registration?

Data on this type of vehicle has allowed us to determine its specific experience and distinguish it from other vehicles in its class.

Three-wheel motorcycles are 4 to 5 times less likely to be involved in accidents than motorcycles with a cylinder capacity of 401 cm3 or more. As a result, the SAAQ has proposed establishing a new rate category to recognize the risk associated with this type of vehicle.

Vehicles covered by this category must have been designed to have three wheels and manufactured with three wheels. These include the Spyder, T-Rex, Slingshot, etc.

Why wasn’t this reduction granted to all motorcyclists, instead of a significant rebate given to three-wheel motorcycle owners?

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.

Why will the insurance contribution of learner motorcyclists increase so significantly?

Recent statistics have shown that this group is three times more likely to be involved in an accident than other groups.

To reflect the risk that they represent, it is proposed that the contribution applicable to their driver’s licence be increased.

Why were rate categories added to determine the insurance contribution applicable to people with more than 3 demerit points on record?

The SAAQ has proposed taking into account all demerit points in the record of drivers who hold a licence with Classes 5 and 6 and no longer capping the insurance contribution of those who have more than 3 demerit points on record, as a matter of fairness towards motorcyclists who adopt safe behaviours.

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 on record, regardless of licence class, represent a greater risk when they are operating a motorcycle than when they are driving a car. The insurance contribution reflects this risk.

What is the new insurance contribution applicable to remunerated passenger transportation based on?

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. Afterwards, it will be determined based on actual data collected regarding vehicles authorized to provide remunerated passenger transportation by automobile.

This insurance contribution will be collected upon the authorization of vehicles providing remunerated passenger transportation.

Last update: November 23, 2021