11/27/2014 02:16 EST | Updated 01/27/2015 05:59 EST

Quebec licence, car registration fees to drop 35% in 2016

Vehicle insurance rates are about go down substantially in the province, according to a news release issued by Quebec’s automobile insurance board, the Société de l'assurance automobile du Québec (SAAQ).

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.