August 26, 2009 by Canadian Underwriter
SGI’s rate request for the Saskatchewan Auto Fund, which includes rate rebalancing, is to be effective Nov. 1, 2009, according to the Saskatchewan Rate Review Panel’s Report to the Minister of the Crown Investment Corporation of Saskatchewan.
SGI had applied for a general average rate increase of 4.2% for the Saskatchewan Auto Fund, the report notes. The proposal also includes rate rebalancing, which means that 45% of Saskatchewan Auto Fund customers will see either a decrease or no change to the rates, the Fund says.
The proposed rate increase and rebalancing, according to the report, includes:
• increases for about 553,000 Saskatchewan vehicles (55%) with an average increase of $55;
• decreases for about 126,000 Saskatchewan vehicles (13%) with an average reduction of $21;
• no change for about 321,000 Saskatchewan vehicles (32%);
The rate application also proposes capped increases to minimize rate shock, the report notes. These include maximum increases of 12.5% for private passenger vehicles to a limit of $125 annually.
As well, maximum increases of 10% would apply for other vehicle classes, with the exception of:
• up to 25% for sport motorcycles and 15 per cent for other motorcycle types;
• up to 22.5% for light commercial trucks that travel out of province;
• up to 17.5% for taxis in rural areas; and
• up to 17.5% for U-drive rental vehicles.