The provincial government has approved a 1.6 per cent net increase with rate rebalancing to SGI's basic auto insurance premiums. The new rates will be effective August 4, 2012.
SGI had originally requested a 3.7 per cent increase with rate rebalancing. The Saskatchewan Rate Review Panel subsequently recommended a 0.6 per cent increase with rebalancing, plus two consecutive years of a one per cent rate surcharge for all vehicles.
"We feel the 1.6 per cent represents a good balance between SGI's original request and the panel's recommendation," Minister responsible for SGI Donna Harpauer said. "We're only looking at one rating year, so we essentially took the panel's recommendation for 0.6 per cent, but instead of the additional one per cent being assessed on all vehicles, it will be applied through rate rebalancing."
Rate rebalancing helps to keep vehicle rates fair by analyzing the 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.
Rate rebalancing means the 1.6 per cent increase is not applied across the board. Instead:
45 per cent of Saskatchewan vehicle owners are receiving a rate increase; on average $7 per month.
37 per cent are receiving a rate decrease; on average $6 per month.
18 per cent won't have any change to their rates.
For vehicle groups that need large increases to cover their claim costs, SGI has capped increases to help reduce rate shock.
SGI will apply all rate decreases on August 4, 2012. Vehicle owners receiving a rate decrease, who have already insured their vehicles past August 4, 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 August 4, 2012, usually the next time they renew their plate insurance.
Rates are available on SGI's website at www.sgi.sk.ca/rates. SGI has not raised rates since 2009.
