Driver’s License Renewal: Reduced Discounts in 2026 Compared to 2025
The Société de l’assurance automobile du Québec (SAAQ) has announced new rates for driver’s license renewals. For 2026, the fee for a class 5 driver’s license will be $50, down from the initially expected $121. However, this reflects an increase compared to the 2025 renewal cost of $26.25. This change is primarily due to a decrease in the contribution to the Automobile Insurance Fund, which will lower from 100% to 75%. This adjustment will result in significant savings for drivers with class 5 and class 6 licenses.
Impact of License Renewal Changes in 2026
The shift in rates will save drivers an estimated total of $462 million in 2026. This adjustment marks the fifth consecutive year that license holders have enjoyed a fee reduction. Over the past four years, the SAAQ has implemented various payment holidays, leading to cumulative savings of approximately $2.4 billion for license holders.
Context of the Changes
Annie Lafond, interim CEO of the SAAQ, emphasized the importance of giving back to Quebec residents amid economic challenges. She stated, “The improvement of road safety and the good health of the Automobile Insurance Fund allows us to return directly to Quebecers.”
From 2022 to 2025, the contribution reduction to the fund was set at 100%. This fund is crucial for compensating road accident victims and supporting prevention activities. Simon-Pierre Poulin, a spokesperson for the SAAQ, explained that the reduction in 2026 is more conservative due to current economic uncertainties.
Projected Savings for License Holders
- Class 5 license holders: Over $450 saved since 2022
- Combined classes 5 and 6 license holders: Over $850 saved since 2022
Distribution of Savings Over the Years
| Year | Savings Amount |
|---|---|
| 2022 | $570 million |
| 2023 | $588 million |
| 2024 | $655 million |
| 2025 | $598 million |
| 2026 | $462 million |
The SAAQ’s next comprehensive evaluation regarding license fees is scheduled for the 2028 cycle. The Automobile Insurance Fund operates separately from the SAAQ’s operational budget, being funded through insurance contributions included in the driver’s license and vehicle registration payments.
