CAC (MPI) 1-1 - Legal Application - $10 increase to the Base Driver Premium

Sep 19, 2026

Uploaded by Skyler

MPI applies for a $10 increase to premiums charged under compulsory driver insurance. The response provides a justification narrative, describes the history of the Base Driver Premium since 2000, and explains rate stability, noting the premium remained at $45 since 1997 after a PUB-approved $10 increase. It also compares how driver-license-related costs and insurance contributions work across MPI, ICBC, SGI, and SAAQ, including SAAQ’s 2024 licence renewal breakdown and effects of demerit points, administrative fees, and duties.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1233

Reading Time51 h 47 min

AccessFree to download

PUB Approved Issue No: 1

$10 increase to the Base Driver Premium

PUB Approved Issue No: 8

Cost of Operations - Budgeting Process Framework

CAC (MPI) 1-1 | Part and Chapter: | Part II
Legal Application | Page No.: | 1 | | --- | --- | --- | --- | | PUB Approved Issue No: | 1. Requested vehicle rate and any changes to other feesand discounts; | | | | Topic: | $10 increase to the Base Driver Premium | | | | Sub Topic: | | | | Preamble to IR (If Any): MPI is applying for a $10 increase to premiums charged with respect to compulsory driver insurance provided by MPI. Question: a. Please provide a narrative discussion of the justification for seeking a $10 increase to the Base Driver premium. b. Please provide a history of changes to the Base Driver Premium since 2000. c. To the extent possible, please provide a jurisdictional comparison between MPI, ICBC, SGI and SAAQ with respect to the base driver premium (or equivalent) rate. Rationale for Question: To understand the reasonableness of the requested change to premiums. RESPONSE: a) Please see the response to CMMG (MPI) 1-9. b) The base driver premium has remained at $45 since 1997, when the Public Utilities Board approved a $10 increase (PUB Order 116/96), which brought the rate from $35 to $45. c) SGI has no insurance premium tied to the driver license. ICBC base premium is $0 but has tariffs for convictions that offset insurance premium. The following is from the SAAQ website: “In 2024, the total cost for renewing a Class 5 (passenger vehicle) driver's licence is $127.05 (unless the licence holder has demerit points entered in their record!). Of this total amount, $101.55 (including the 9% sales tax paid to Revenu Québec) represents the insurance contribution allocated directly to the fund. The remaining amount included a $5.20 administrative fee and a $20.30 duty paid to the Ministère des Finances. It should be noted, however, that in 2024, holders ofa Class 5 (passenger vehicle) and Class 6 (motorcycle) licence – other than learner drivers—get a break from having to pay the insurance contribution when their licence is issued or renewed. These licence holders only have to pay the duties, administration fees and, if applicable, the insurance contribution stemming from any accumulated demerit points. Therefore, if you do not have any demerit points in your driving record, your driver’s licence will cost you $25.50 in 2024.1” 1 [https://saaq.gouv.qc.ca/en/traffic-accident/public-automobile-insurance-plan/insurance](https://saaq.gouv.qc.ca/en/traffic-accident/public-automobile-insurance-plan/insurance)contributions\#:~:text=In%202024%2C%20the%20total%20cost,allocated%20directly%20 to%20the%20fund. CAC (MPI) 1-2 | Part and Chapter: | Part II—COM Appendix 3 | Page No.: | 3-4 | | --- | --- | --- | --- | | PUB Approved Issue No: | 8. Cost of Operations | | | | Topic: | Budgeting Process Framework | | | | Sub Topic: | | | | Preamble to IR (If Any): Operating expenses are controlled by management. The development of the operating budget is guided by two approaches: Top-Down Guidance and Bottom-up exercise . On page 3 it states: “Top-Down Guidance is established by the Executive Committee (EC) and reflects the prioritization of strategic initiatives that will improve operations (e.g., Lower operating costs, adding new capabilities, or enhancing consumer experience or risk mitigation) . This reflects an enterprise view and seeks to establish the corporate pace (run rate) with respect to level setting natural corporate operating expenses for the budget period. This includes the scale and scope of staffing. Past and current trending on expenditures is considered while evaluating potential improvements in process/new capabilities to product and service levels. This also reflects direction, if any, from the Treasure Board Secretariat (TBS) . Alignment at the EC level is then disseminated to individual business units as a guard rail on department budget expectations.” On page 4 it states: “Bottom-up exercise This reflects department operating and initiative pl

FAQs

What is MPI requesting regarding the Base Driver Premium?

MPI is applying for a $10 increase to premiums related to compulsory driver insurance provided by MPI.

How has the Base Driver Premium changed since 2000?

The Base Driver Premium has remained at $45 since 1997, when the Public Utilities Board approved a $10 increase (PUB Order 116/96) that brought the rate from $35 to $45.

How do driver-related costs and insurance contributions differ across MPI, ICBC, SGI, and SAAQ?

SGI has no insurance premium tied to the driver license. ICBC has a $0 base premium but uses tariffs for convictions that offset insurance premium. SAAQ provides a 2024 licence renewal cost breakdown showing how insurance contributions, administrative fees, and duties apply, with demerit points affecting whether holders pay the insurance contribution.

Sep 19, 2026

Uploaded by Skyler