REGINA – Vehicle insurance rates are going up in Saskatchewan – but not by as much as Saskatchewan Government Insurance first proposed.
In February, SGI announced it was looking to increase its auto insurance rates by an average of 5.2 per cent.
On Wednesday, the Saskatchewan Rate Review Panel said it’s recommending an overall average increase of 4.4 per cent.
The proposed 5.2 per cent increase included both a general revenue increase and a capital portion aimed at helping replenish the rate stabilization reserve.
In its decision, the panel said both accounts were taken into account.
The panel also recommends all vehicle classes be part of the proposed rate rebalancing which would include motorcycles; SGI wanted to single out motorcycles because the vehicles usually carry higher claim costs.
“The panel’s recommendations are based on fairness and rate stability for all the auto fund’s customers,” panel chairwoman Kathy Weber said in a statement.
The panel also recommended that rate capping be two-thirds the level proposed by SGI.
The report was submitted to the minister responsible for the Crown corporation. Provincial cabinet will make the final decision on the rate increase.
© The Canadian Press, 2014