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Starting in January, vehicle insurance rates in Saskatchewan could be going up … and down.
On Tuesday, SGI announced it had asked the Saskatchewan Rate Review Panel to examine a proposed zero per cent change for Saskatchewan Auto Fund rates, effective Jan. 21 of next year.
The proposal includes a 1.7 per cent rate increase, with rate rebalancing for all vehicles, and a 1.6 per cent decrease to the capital margin for all vehicles.
If the changes are approved, rates for about 52 per cent of Saskatchewan vehicles would drop by an average of $102 per year, while rates for about 48 per cent of vehicles would increase by an average of $96 per year. The rates for less than one per cent of vehicles wouldn’t change at all.
“Each customer’s rate change depends on the type of vehicle they own, the actual risk each vehicle represents of being involved in a claim, and the actual costs of paying that claim,” SGI’s proposal read.
The proposed rates for all vehicles can be found here.
The Crown corporation said increases will be capped at $150 per year for an annual premium that’s under $1,000 and at 15 per cent for premiums that are more than $1,000 per year.
“SGI is confident that the premiums currently being collected are enough to offer all of our customers coverage in the event of a collision; by rebalancing rates so some vehicle types pay more and others pay less, we can move closer towards rate fairness,” SGI president and CEO Andrew Cartmell said in a media release.
“SGI is committed to ensuring fairness in rates between vehicle types, while also keeping Saskatchewan’s basic auto insurance rates among the lowest in Canada.”
The company said the frequency and severity of injury claims has decreased in recent years, but that is being offset by higher costs for damage claims and increases to administrative and other expenses.
“Rising repair costs due to increased complexity of technology, procedures and materials used in newer vehicles have mitigated what would have otherwise been a rate decrease,” SGI said in its proposal.
The rate review panel is to review SGI’s proposal and seek feedback from the public. The panel then will make its recommendations to the Minister of Crown Investments Corporation.
Comments on the rate proposal can be sent to the panel on its website, Facebook page or Twitter account, by calling 1-877-368-7075, by sending an email (feedback@saskratereview.ca) or by attending a public hearing.
