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Half of the drivers on the road in Saskatchewan are underinsured, according to a report from the province’s insurance brokers association.
The report, which was compiled by the Insurance Brokers Association of Saskatchewan (IBAS), found roughly 50 per cent of drivers in Saskatchewan carry just the minimum $200,000 third-party liability coverage included with their plates. In comparison, 90 per cent of Manitoba drivers were found to have coverage of at least $1 million.
“Far too many drivers simply don’t understand what is included and, more importantly, what is not included in that basic plate coverage,” IBAS CEO Derek Lothian told CKOM’s John Gormley. “Ultimately, I think it’s just a gap in knowledge.”
The terminology involved in auto insurance can be confusing, Lothian said, particularly when it comes to the no-fault coverage automatically included with SGI plates.
“The term ‘no-fault coverage’ is a bit misleading,” he said.
According to Lothian, no-fault coverage sets out a defined level of benefits regardless of who’s responsible for a collision, but the driver at fault can still be sued for expenses that are not covered by the defined benefits.
Saskatchewan residents can’t sue for pain and suffering except in very limited circumstances, he said, but drivers should keep in mind that they may be sued for pain and suffering if they cause an accident outside of the province.
“Insurance is a complicated product,” Lothian said. “I work in the industry and it hurts my head some days.”
While $200,000 may seem like plenty of coverage, Lothian noted that’s not always enough to cover serious collisions.
“If you’re in an accident that causes damage to a person’s or business’s property, $200,000 can disappear in a hurry,” he said.
Along with its report, IBAS published recommendations to improve the situation, such as including education around automotive insurance in Saskatchewan’s driver training programs.
“The recommendations really focus on education, awareness, and process improvement,” he said.