In 2026, six million drivers in Quebec will once again benefit from sharply reduced SAAQ driver’s licence fees, paying only $50.23 instead of the previously projected $121. This marks the fifth straight year that licence renewal costs in La Belle Province have been lowered. The reduction is part of an ongoing effort to refund nearly $3 billion in past SAAQ overpayments, which equals roughly $452 per licensed motorist.
However, the savings are far from universal—drivers with demerit points will pay significantly more.
Why Quebec Drivers Are Still Receiving SAAQ Discounts
SAAQ: More Than Just a Licensing Agency
Many residents forget that the Société de l’assurance automobile du Québec (SAAQ) operates not only as the province’s licensing authority but also as a public automobile insurer. Provincial law requires the SAAQ to neither overcharge nor underfund its insurance program.
Despite this rule, the SAAQ collected around $3 billion more than necessary in recent years. Several key factors contributed to this surplus:
1. Insurance Fund vs. Operating Budget
The SAAQ emphasizes that its Insurance Fund is separate from its operating budget, meaning costly initiatives such as the SAAQCliq digital rollout should not affect the price of a driver’s licence or vehicle registration.
2. Fewer Road Accident Victims During the Pandemic
Actuaries could not have predicted the noticeable improvement in road safety during the COVID-19 years, which led to fewer claims and lower compensation payouts, leaving large insurance reserves unused.
3. Strong Investment Performance
Money held in SAAQ’s investment accounts generated higher-than-expected returns, further increasing the surplus.
Four Years of “Payment Holidays” for Quebec Motorists
To correct its overcharging, the SAAQ has issued four consecutive years of licence-fee reductions, commonly called rebates or reimbursements:
| Year | Regular Cost | Amount Waived | “Rebate” Value |
|---|---|---|---|
| 2022 | $91.15 | 100% | $91.15 |
| 2023 | $96.71 | 100% | $96.71 |
| 2024 | $101.55 | 100% | $101.55 |
| 2025 | $92.16 | 100% | $92.16 |
Excluding the yearly $25 administrative + duty fees, drivers with zero demerit points paid nothing at all for four years. In total, Quebecers have saved $2.4 billion between 2022 and 2025.
The 2026 SAAQ Licence “Rebate”: What Drivers Will Pay
The SAAQ confirmed that the rebate will continue in 2026, but at a reduced level.
2026 Rebate Rate: 75%
The budgeted licence cost for 2026 is $93.92, but drivers will not pay the full amount.
- Discount (75%): $70.44
- Remaining amount: $23.48
- Fees and duties: $26.75
- Total payable in 2026: $50.23
Without the reduction, the invoice would have been $120.67.
The expected total “cash back” for 2026 is $462 million, bringing the 2022–2026 savings to $2.862 billion, or $452 per driver.
Why Some Drivers Will Pay Far More in 2026
Discount Extended to All Drivers — But Penalties Still Apply
The 2026 licence discount applies to all Class 5 licence holders, including:
- the 80% of drivers with clean records
- the 20% with demerit points
However, motorists with infractions will face steep penalty surcharges, even after the rebate.
2026 Licence Costs Based on Demerit Points
| Demerit Points | 2026 Licence Fee | Increase Trend |
|---|---|---|
| 0 points | $50.23 | Base rate |
| 1–3 points | $121.84 | More than double |
| 4–6 points | $200.08 | Quadruple vs. clean record |
| 7–9 points | $265.98 | Significant rise |
| 10–14 points | $361.51 | Heavy penalty |
| 15+ points | $603.06 | Nearly 12× base cost |
Drivers with 15 or more points will pay over $600—a massive increase compared to the $50.23 paid by motorists with perfect records.