No rate changes for motorcycles and taxis
The Government of Saskatchewan has decided that SGI will implement a revenue-neutral rate rebalancing on the Saskatchewan Auto Fund premiums, without changes to motorcycle and taxi rates.
Rate rebalancing means that some vehicle classes will have rate increases and others will have decreases. Overall, it will result in a net-zero change in revenue to the Auto Fund, although most drivers will see their rates adjusted. Approximately 49% of customers will see a decrease in their Auto Fund premiums, while 51% will receive an increase. Rate increases will be capped to provide stability for vehicle owners. This will move SGI closer to rate fairness across different vehicle types.
“SGI customers will continue to benefit from among the lowest basic auto insurance rates in Canada,” said Don Morgan, Minister Responsible for SGI. “A revenue-neutral rate rebalancing demonstrates SGI’s commitment to fairness across vehicle types.”
Following feedback received from the public and stakeholders during the rate review process, SGI will act on a number of recommendations, including:
- No customer will see an annual increase in their premiums higher than 10% on premiums higher than $1,000 (and a dollar cap of $100 for premiums under $1,000).
- SGI undertakes formal, meaningful engagement with stakeholders on ways to resolve industry-specific issues.
- SGI will adopt the recommendations from the Saskatchewan Rate Review Panel regarding enhancements to filing standards, and information in future rate applications.
Permit fees to be adjusted to reflect costs of claims
SGI provides short-term auto insurance coverage through 24-hour and 8-day permits. In-transit permits and temporary insurance cards provide coverage for inter-provincial use to transport a newly acquired vehicle. Permit fees have been the same for years and as a result aren’t priced appropriately for the corresponding insurance risk – especially given that permits provide full injury coverage in the event of a collision.
The new permit rates reflect the actual risk each vehicle represents for being involved in a claim, and the actual costs of paying that claim.
The price of a 24-hour permit will be increasing from $20 to $26. The price of an 8-day permit will increase from $48 to $73. In-transit permits will increase from $30 to $43. Temporary insurance cards will increase from $11 to $28. (All prices subject to PST.)
All changes will be implemented on April 1, 2022.