Saskatchewan drivers to see a 1.6% auto insurance premium hike in August

Drivers in Saskatchewan will see a 1.6% net increase in the basic auto insurance premium, effective Aug. 4, 2012.

Saskatchewan Government Insurance (SGI) reports in a statement that the provincial government approved the net increase with rate rebalancing to SGI’s basic auto insurance premiums.

SGI had requested a 3.7% hike with rate rebalancing, while the Saskatchewan Rate Review Panel subsequently recommended a 0.6% increase with rebalancing, plus two consecutive years of a 1% rate surcharge for all vehicles.

“We essentially took the panel’s recommendation for 0.6%, but instead of the additional 1% being assessed on all vehicles, it will be applied through rate rebalancing,” says Donna Harpauer, provincial minister responsible for SGI. Rate rebalancing analyzes actual costs of insurance claims for different vehicle types and classes, as well as the number of collisions and their severity, auto damage, injury and liability costs.

The decision means 45% of vehicle owners in Saskatchewan will see rates increase by an average of $7 per month; 37% will witness lower rates by an average of $6 monthly; and premiums for 18% of drivers will stay the same.

For drivers facing rate hikes, the new premium will not apply until the next time an owner does a vehicle transaction on or after Aug. 4, 2012. That date will also apply for individuals with rate decreases, although if vehicles are already insured past Aug. 4, 2012, they will automatically receive a refund for the difference between old and new rates to the end of their policy term.