Canadian Underwriter

SGI increases penalties for risky drivers, discounts for safest drivers

November 24, 2015   by Canadian Underwriter

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Saskatchewan Government Insurance announced Tuesday several changes to its safe driver recognition program, which provides discounts to safe drivers and increases premiums for drivers with incidents or convictions.

SGI said in a press release the province has approved recommendations put forward by SGI, the government’s monopoly auto insurance carrier.

For premiums, SGI has neutral, penalty and safety zones.

 Saskatchewan Government Insurance announced changes to its safe driver recognition programIn the new system that will be implemented in mid 2016, a driver in the “safety zone” will be rated either as a good driver, great driver or safest driver.

Those in the neutral zone will continue to be charged the base premium.

With the new program, financial penalties will double from $25 to $50 per point for drivers in the penalty zone.

“Drivers who cause a collision or get a traffic conviction that moves them into the Penalty Zone, or further down the Zone, pay a penalty of $50 per point,” SGI stated Tuesday of the new program. “The maximum penalty is $1,000 for incidents that move drivers to -20 or worse. Financial penalties for alcohol-related Criminal Code convictions remain at $1,250 or $2,250, based on the severity of impairment. Financial penalties for Criminal Code convictions resulting in injury or death remain at $2,500.”

The safest drivers will be able to earn a discount on their premiums of up to 25%.

“All at-fault collisions will result in loss of points, but the program will take the seriousness of a collision into consideration,” SGI stated. “Drivers who cause collisions with claim payouts under $700 will lose four points. Those who cause collisions with claim payouts of $700 or more will lose six points.”

The Safe Driver Recognition program was created in 2002.

With the new program, those in the “safest driver” zone will be motorists who have driven incident-free for more than 20 years. Those safest drivers will earn an extra 1% discount for each additional year they drive incident-free, up to a maximum discount of 25%.

“These drivers lose some of their discount if they cause a collision or get a traffic conviction and therefore lose their designation as one of Saskatchewan’s safest drivers,” SGI stated. “For example, a driver at +21 will lose 6 points if they cause a collision and move to +15 on the safety rating scale; however, they will only lose 1% of their discount.”