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…