Saskatchewan Government Insurance (SGI) said it has submitted a proposal to the Saskatchewan Rate Review Panel (SRRP) for a revenue-neutral rate rebalancing that would result in a net zero per cent change to its auto fund.
If approved, about 52 per cent of Saskatchewan vehicle owners would see a rate decrease of about $102 per year and about 48 per cent of vehicle owners would see a rate increase of about $96 per year.
For the remaining vehicles, which is less than one per cent, there would be no rate change.
SGI said increases will be capped to reduce rate shock at a maximum of $150 per year for an annual premium under $1,000 and a cap of 15 per cent for premiums over $1,000 per year.
Rate changes would come into effect as of Jan. 1, 2022 if the proposal is approved.
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“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,” said Andrew Cartmell, SGI president and CEO.
“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.”
SGI said SRRP will review its proposal and then seek feedback from the public before submitting a report with its recommendations to the minister of Crown Investments Corporation.
“In recent years, we have seen expenses for repairing more intricate and complicated car systems increase,” Cartmell said.
“Despite that, we have been able to avoid significant increases in premiums due to a reduction in collisions, injuries and fatalities on Saskatchewan roads, thanks in part to stronger traffic laws, increased enforcement and effective awareness campaigns.”
SGI said this rate program is about fairness, in contrast to its latest $285-million rebate issued to customers in May, which was done to address excess capital in its auto fund.
“Decisions on rates are made based on longer-term trends, while the excess in the RSR resulted from conditions that cannot be expected to be repeated every year,” said Jeff Stepan, SGI chief financial officer.
“Rebates were the best way to return that one-time windfall to SGI customers.”
Proposed rates for all vehicles can be found on SGI’s website.
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