Quebec to see increases in auto insurance premiums

The government of Quebec will not approve any major hikes in public auto insurance premiums, like those recently proposed by the Socit de l’assurance automobile du Qubec (SAAQ), according to the province’s junior Transport Minister Julie Boulet. The SAAQ recommended a rate increase of up to 300% for auto insurance in order to compensate for the more than $1 billion debt that the automobile insurance board is currently running. According to reports, the SAAQ ran a $500-million deficit last year which was incurred regardless of the $700 million finances it made the board paid out $1.1 billion in accident-victim compensation the same year. Changes are inevitable, but Boulet says the increases will not be severe. The government intends to examine the board’s recommendations and implement a rate change that will help to decrease the debt, yet avoid damaging drivers pocketbooks. Amendments to auto rates are a long time coming as it has been 20 years since the SAAQ changed Quebec’s rates.