The province of Saskatchewan has delivered some welcome news to
motorcyclists. After much public outrage, SGI’s proposed rate hikes on
motorcycles will now be capped.
“The motorcyclists were very, very vocal saying it was too much,
too soon, and can we look at options,” said SGI Minister Donna Harpauer. “We
don’t disagree with their position and that we should be looking at options.”
For premiums costing more than $1,000, the rate increase will be
capped at 15 per cent. If it’s less than that, the increase will have a maximum
of $150.
SGI says motorcyclists have for some time been paying less than
their fair share. High injury costs from accidents are the main reason why more
costly premiums are necessary.
“The reason we did that was the gap in terms of where premiums
were to where they needed to get to was large,” said SGI President and CEO
Andrew Cartmell. “It’s really the only rate category in the province where
there’s such a big gap.”
Other drivers will now make up the difference. Overall, 63 per cent
of drivers will see premiums increase, as opposed to 57 per cent under the
previous rate proposal.
This announcement has been met with approval by motorcycle riders
like Marty Steinhubl, who works at a local bike shop.
“It’s a positive step forward,” he said. “Obviously, we were very
concerned with this proposed rate hike. We were very, very concerned.”
At the same time, he says the way to reduce premiums in the long
term is to improve safety, but there is a long way to go.
horsepower motorcycles or $30,000 Harleys and they’re riding down the street
wearing no gear whatsoever. And then they get into a major accident, and [it
costs] hundreds of thousands of dollars to put these people back together,”
Steinhubl said.
In the meantime, the rate review panel will be discussing some
other options, like tiered insurance, in order to help keep premiums low.
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