Public Automobile Insurance Plan

Insurance Contributions

As its trustee, the SAAQ oversees the Fonds d'assurance automobile du Québec. To this end, the SAAQ determines the amount of the insurance contributions to be collected and transferred to the Fonds, which allows for, among other things, compensation of accident victims.

What is the purpose of insurance contributions?

Insurance contributions are used to support the Fonds d'assurance automobile du Québec. It is the Fonds that allows us to compensate accident victims as well as conduct prevention and safety awareness activities.

How are contributions to the Fonds collected?

Contributions to the Fonds d'assurance are collected from driver's licence and vehicle registration payments.

Concrete example of insurance contributions in the case of a driver's licence

In 2015, the total cost for renewing a Class 5 (passenger vehicle) driver's licence is $91.46 (unless there are demerit points entered on the holder's driving record!).

From this $91.46, an amount of $69.71 (including the 9% sales tax paid to Revenu Québec) represents the insurance contribution that is transferred directly to the Fonds d'assurance.

The difference between these two amounts represents a $4.35 administrative fee and a $17.40 fee paid to the Ministère des Finances.

Concrete example of insurance contributions in the case of the registration of a passenger vehicle

In 2015, the total cost for renewing the registration of a passenger vehicle is $278.58, or $323.58 for Montréal residents.

From these amounts, an amount of $123.23 (including the 9% sales tax paid to Revenu Québec) is transferred directly to the Fonds d'assurance.

The difference between these two amounts represents a $4.35 administrative fee, a $113 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 Fonds d'assurance are mainly influenced by two factors: the road safety record and the financial situation of Québec's public automobile insurance plan.

Regarding these two factors, it is easy to understand how the more negative the road safety record is, the more accident victims and loved ones of deceased victims will require compensation and the higher the numbers and amounts of indemnities awarded will be.

Conversely, when the road safety record improves and other factors are in place, the amount of insurance contributions we must pay is decreased.

How are insurance contributions determined?

Insurance contributions are determined under the Regulation respecting insurance contributions of Québec's Automobile Insurance Act.

To determine insurance contributions, we must first consult the Panel of Experts on insurance contributions.

The Panel of Experts must hold a public consultation to seek public opinion on the amendments to insurance contributions proposed by the SAAQ. Following the consultation, the Panel issues its recommendations.

Useful information

The Panel of Experts in brief
The Panel of Experts' mandate 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 is required hold a public consultation.

Insurance Contributions for 2016-2018

Thanks to an ever-improving road safety record and the plan's good financial situation, nearly all drivers and vehicle owners will see a reduction on their insurance contribution for the period from 2016 to 2018.

Our proposal was submitted to the Panel of Experts on insurance contributions in a document entitled Proposed Insurance Contributions for 2016-2018 (PDF, 1.3 MB). It was also on the basis of this document that the public consultation was held and that the Panel of Experts expressed a favourable opinion.