New Taxes On Our Car Insurance

Upon hearing the Quebec government's new economic measures, we were horrified, surprised and angered to hear that car drivers would pay more, again: there will be more taxes for engines over 4 litres, a 2-cent augmentation of the fuel tax and a one-time fee for vehicles with large powerplants.

Another important point was for automotive insurance: starting January 1st 2015, every car owner will have to pay 3% more tax than last year, bringing the total to 9%.

That may not seem like much, but let’s put it into perspective: while a 9% tax might only be an increase of a few dollars for Mr. Bob (45 years-old, never had an accident in 3 decades), it will be significantly more for his son Bob Junior, who got his license last year, drives his first car, and is working part-time while going to school…

Despite the fact that insurance companies already sent out their bills for the year, the government decided to go ahead and increase taxes, which means that your insurance premium will be adjusted shortly.

As a reminder, this is not a hike in your insurance: in the last 8 years, there have been fewer and fewer accidents in Quebec and our premiums have dropped accordingly.

So, if you receive a letter asking you to pay more for the privilege of driving on our roads, don’t be surprised. And remember, the majority voted for this government…

Share on Facebook

More on the subject

NewsNew Tax On Large Displacement Engine
Earlier this week, Quebec’s government surprised us by lowering the price of renewing our driver’s license: starting next year, we will pay around $65 less for the privilege of driving on our well-maintained roads. However, before running to the nearest shop to spend those saved dollars, you would be well-advised …
NewsLess Than A Dollar For A Litre Of Fuel?
In the last few weeks, fuel prices have dropped significantly. In Quebec, it is currently around $1.21 per litre, but some fuel stations in the West will sell you the same amount for around 97 cents! According to analyst Dan McTeague, fuel prices could go even lower. Yes, you read …