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SAAQ surplus means two-year payment holiday on drivers license renewal

Christmas came early this year!


Thanks to the surpluses racked up by the SAAQ, the majority of Quebec drivers will only have to pay about $ 20 to renew their driver's license in 2022 and 2023.


The Minister of Transport, François Bonnardel, is expected to announce today a two-year payment holiday on the insurance contribution which must be paid on each license renewal.


Drivers of a passenger vehicle will save approximately $ 90 per year, in 2022 and in 2023. Only the administration costs ($ 4.75) and the duties ($ 18.60) will have to be paid for the permit is valid.


Drivers with infractions will continue to pay more, from $ 50 to almost $ 450 or more depending on the number of skills points on file.


Motorcycle riders, who ended up with a bill of nearly $ 800 this year for the renewal of their Class 5 and 6, will be entitled to a rebate of approximately $ 150 per year in 2022 and 2023.


Over $ 1 billion in cash back


In short, a total of more than $ 1 billion will be returned to the pockets of Quebecers, in the form of a return of capital upon renewal of the driver's license.


According to what has been learned, around 6.4 million permit holders will benefit from this measure, which will be touted as a way to help with post-pandemic recovery.


Factors that make this rebate possible: the improvement in the road record observed in 2020, combined with the performance of the Automobile Insurance Fund's investments over the past ten years.


The capitalization rate of this fund rose from 82% in 2010 to 156% in 2020. SAAQ actuaries predict that this rate will be 125% after rebate.


The partial road report for the year 2020 (January to October) showed a decrease, compared to the previous year, of more than 11% in the number of serious injuries following a road accident. While the pandemic may have influenced the road toll, the downward trend remains: from 2015 to 2019, the average number of injured fell by 18.5% and the number of deaths by more than 3%


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SAVINGS FOR DRIVERS

Total cost of the driving license *


2021: $ 87.28

2022: $ 23.35

2023: $ 23.35

2024: $ 118.18

Total savings in 2022 and 2023:



Source: TVA Nouvelles