Saskatchewan government approves auto insurance rate increase

The Saskatchewan government has approved a rate increase for auto insurance in the province, effective at the end of August.

The government has approved a 1.03% overall increase to Saskatchewan Auto Fund rates, along with rate rebalancing, and a 1.23% surcharge on all rates for a one-year term, Saskatchewan Government Insurance announced Monday.

SGI had originally requested a 1.23% rate surcharge for the next three years to replenish the Rate Stabilization Reserve (RSR). The Saskatchewan Rate Review Panel (SRRP) recommended the rate surcharge be approved for one year only.

“The panel found the overall increase to be reasonable and recognized the importance of rebalancing rates to improve fairness,” Donna Harpauer, the minister responsible for SGI noted.

“The rate rebalancing will bring about 80% of the vehicle population to within 5% of their required rates, up from only half today,” she added.

Rebalancing adjusts customers’ rates so that each vehicle is charged the correct rate to cover the claim costs for that type of vehicle.

According to SGI, the changes effective Aug. 21 will result in:

• 63% of Saskatchewan vehicle owners receiving a rate increase (on average $3 per month)
• 35% of vehicle owners receiving a rate decrease (on average $2 per month)
• 14,000 vehicle owners seeing no change to their rates.

Any potential changes to motorcycle rating in the province won’t be implemented in time to have an impact on this rating year, SGI said.

“Therefore, in fairness to all vehicle owners, motorcycle owners will see rate changes just like all other vehicle owners in the province in this rating program,” a statement from SGI said.

“To help reduce rate shock, SGI will cap increases for all vehicle groups, including motorcycles,” it said.

“Vehicle groups with annual rates greater than $1,000 will be capped at a maximum increase of 15%, while those with annual rates less than $1,000 will have dollar caps ranging from $25 to $150.”

SGI will apply all rate decreases immediately on Aug. 31. Vehicle owners receiving a rate decrease, who have already insured their vehicles past that date will automatically receive a refund for the difference between their old rate and their new rate to the end of their policy term.

For those receiving rate increases, the new rate won’t be applied until the next time an owner does a vehicle transaction on or after Aug. 31, usually the next time they renew their plate insurance.