by Quebec Drivers to Get Discounts for Impeccable Driving
Everyone tries to save money, and drivers in the Canadian province of Quebec can now link this to better habits behind the wheel. For 2026, the Société de l’assurance automobile du Québec (SAAQ) is proposing significant discounts for good drivers.
The Role of SAAQ in the System
SAAQ is the provincial road safety and licensing agency, responsible for issuing driver’s licenses, registering vehicles, and managing the public auto insurance system. Unlike private insurers in other regions, it combines licensing and no-fault accident insurance within a single organization.
Conditions for Class 5 License Holders
For Class 5 license holders, the incentive is clear. Those with a flawless record will pay only $50.23 instead of the previously planned $121. However, drivers with violations will see an increase in their license renewal cost.
Source of the Discounts
The discount has become possible due to the long-term high performance of the Quebec Automobile Insurance Fund, which has accumulated a significant surplus through fewer accident victims and higher-than-expected investment income.
Road Safety Statistics
According to SAAQ, the number of road injuries has noticeably decreased since 2020, especially during the pandemic years when driving patterns changed and collisions decreased. As a result, nearly $462 million will remain in the pockets of Quebec residents next year.
Previous Grace Periods
Quebec drivers have already benefited from four consecutive years of full “payment grace periods,” during which drivers with a clean record paid only basic administrative fees for license renewal.
Les Québécois bénéficieront d’une réduction de 75 % sur le coût de la contribution d’assurance associée à leur permis de conduire en 2026. Au total, ils économiseront près de 462 millions de dollars.
Refunds to Drivers
Between 2022 and 2025, SAAQ returned $2.4 billion to its members, which, according to the agency, reflects the need to align insurance premiums with actual claims and fund performance. Since provincial legislation prohibits the insurer from underfunding or overcharging, the surplus must be redistributed back to drivers.
2026 Discount Mechanism
This redistribution will continue in 2026, albeit at a lower rate. The planned insurance contribution for the next year is $93.92, but a 75% discount removes $70.44 from the bill. After adding standard fees and duties of $26.75, drivers with zero demerit points will be required to pay only $50.23 when they receive their renewal notice. Importantly, this applies only to drivers in the highest safety class.
The Cost of Violations
Drivers with violations will face sharply increased fees, which are part of penalty surcharges tied to their demerit points. Even after the discount, drivers with one to three points on their license will pay $121.84. According to Driving.ca, those with 15 points or more will have to pay $603.06 to keep their license in good standing. In other words, this is 12 times the amount paid by a driver with a clean record.
Such a policy creates a clear financial incentive for safe driving, effectively turning a driver’s license into a variable-cost tool depending on behavior. This could serve as a model for other regions seeking ways to reduce accidents not only through penalties but also through positive reinforcement. However, it is important to note that the system is based on the stability of the insurance fund, which, in turn, depends on macroeconomic factors and overall safety trends. If the number of accidents increases or investment income falls, such generous discounts may prove to be a temporary phenomenon.
