Auto Insurance

SAAQ passing on savings to drivers across Quebec

By: Gary Parkinson on June 23, 2015

The auto insurance board in Quebec is passing on savings to drivers beginning in 2016. The Société de l’assurance Automobile du Québec (SAAQ) approved a request to reduce fees for driver’s licenses and lower rates to register new vehicles, both of which will come into effect next year.

The Montreal Gazette reported on the new fees and other plans put forward by the SAAQ. The average fee charged to obtain a new license is approximately $64 in 2015, but will decline to $55 under the new system. The actual cost of a license to drive a car or motorcycle is also set to decline from $128 down to $117 next year.

Drivers will save even more money when registering a new vehicle. The current registration costs are around $120, but that sum will decrease to $64 in 2016. Motorcyclists are also expected to save money on new registrations.

The SAAQ recommended lowering these fees to incentivize drivers. Over the past number of years, the number of accidents on Quebec highways has significantly decreased, resulting in fewer auto insurance claims from drivers, and subsequently, lower costs for insurers. To encourage even greater road safety, the auto insurance board recommends passing those savings onto drivers.

The proposed savings above are provincial averages, but the actual amount charged to drivers will vary by region. The SAAQ is already advising drivers in and around Montreal that the savings will be less significant than the provincial average, due to the sheer volume of people living within the metropolitan area.

Drivers across Quebec will still be required to negotiate the best auto insurance rates with their providers. But the SAAQ will make sure it is cheaper to obtain a license and register a vehicle, which means more money in the pockets for Quebecers going forward.

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