The SAAQ said the insurance contributions proposed for 2016-2018 will be reduced by 35 per cent for more than four million drivers and vehicle owners.
On Dec. 31, 2013, the SAAQ posted a $1.1 billion surplus.
For a driver who owns a passenger vehicle, this means $65 in savings — the annual licence fee will go from $64 to $55, and car registration will go from $120 to $64.
Nathalie Tremblay of the SAAQ said the fee reduction is possible, thanks to safer driving habits on Quebec roads over the past seven years which led to fewer insurance claims.
The changes are expected to come into effect in 2016.