Quebec proposes public auto rate increases

The Socit de l’assurance automobile du Qubec (SAAQ) is holding public hearings on a proposal to increase its public auto insurance contributions as of 2007.
“This document contains an analysis of the financial situation of the Fonds d’assurance automobile du Qubec conducted by SAAQ’s staff and members of the Board of Directors,” the SAAQ’s consultation document reads. The document contains the proposal and is posted on the SAAQ Web site.
“This situation is of concern. The government is keenly aware of it and has already implemented important corrective measures. Other remedial actions have been taken by the SAAQ, but all these efforts will not be enough to enable the Fonds to regain the sound financial footing it needs to honour its responsibilities to victims of road accidents. Given the situation, an increase in insurance contributions turns out to be inevitable.”
The document goes on to say: “To restore the financial situation of the Fonds, the SAAQ proposes gradual increases to insurance contributions that reflect the plan’s financial needs and that are equitable for all categories of contributors.
“The public consultation that is beginning regarding this proposal will be spearheaded by a panel of experts that will be making its recommendations to us in late spring. We should therefore be able to implement the anticipated changes as early as 2007.”
CAA-Quebec announced it is pleased with the decision to proceed with a public consultation on Quebec’s public automobile insurance plan. CAA-Quebec said it was “not surprised by the possible increase in insurance contributions, given that the last increase was more than 12 years ago.”
Still, CAA-Quebec said in a press release, any increase “must be implemented fairly and that the insurance bill must be simpler and more transparent for motorists.”
“It is clear that the insurance premium has been stable for a long time,” Sophie Gagnon, the CAA-Quebec director of public and government relations, said in a press release. “We nevertheless hope that the changes will be in line with the plan’s basic values, which include fairness.”
CAA-Quebec wants the insurance premium be billed separately from fees related to vehicle registration and the driver’s licence. “If billed separately, the insurance premium immediately becomes more transparent and motorists will become more aware of the amount of insurance they are paying,” Gagnon says.