Quebec motorists will experience a significant reduction in their driver's licence discount come 2026, marking a shift in the province's automobile insurance landscape. While drivers will still benefit from lower costs compared to pre-pandemic rates, the savings are noticeably shrinking according to recent announcements from the Société de l'assurance automobile du Québec (SAAQ).
Licence Cost Increases for 2026
The upcoming changes will see Quebec drivers paying more for their licence renewals. A Class 5 driver's licence without demerit points will cost approximately $50 in 2026, representing a substantial increase from the 2025 renewal cost of $26.25. This adjustment signals the end of the deeply discounted rates that Quebecers have enjoyed in recent years.
Simon-Pierre Poulin, spokesperson for the SAAQ, explained that the initial projections for insurance costs didn't account for the COVID-19 pandemic's impact. "When we started doing the projections for insurance costs, we didn't plan for COVID," Poulin stated in an interview. The unprecedented reduction in road accidents during and following the pandemic created unexpected financial conditions that allowed for greater discounts.
Behind the Changing Discount Structure
The fluctuating licence costs are directly tied to the performance of the Quebec Automobile Insurance Fund. According to the SAAQ's press release, the fund has experienced a "decrease in the number of people injured on the roads since 2020" that initially created surplus conditions.
During the peak of the COVID-19 pandemic and the subsequent years, Quebec witnessed a dramatic reduction in traffic accidents and associated injury claims. "We saw a reduction in the number of accidents, and therefore, of the money we have to pay to people who got injured," Poulin explained. This unexpected downturn in claims created financial breathing room that translated into savings for drivers.
Five-Year Discount Trend Ending
Annie Lafond, interim president and CEO of the SAAQ, confirmed in the press release that 2026 will mark the fifth consecutive year that Quebec drivers have benefited from discounted licence costs. However, the diminishing discount indicates a return toward pre-pandemic pricing structures.
The SAAQ's financial management during this period has resulted in substantial returns to Quebec citizens. Over the past four years, the organization has returned $2.4 billion to its members while maintaining the sustainability of the public insurance plan for road accident victims. In 2026 alone, Quebec residents will save nearly $462 million, though this represents a smaller discount than in previous years.
The SAAQ has announced that it will recalculate driver's licence costs again in 2028, suggesting that further adjustments may be on the horizon as traffic patterns and accident rates continue to normalize post-pandemic.
