SGI Rates Increasing by 3.4%

 Written by Jessica Vallee on Tuesday, 01 July 2014

 

 

The provincial government has taken the Saskatchewan Rate Review Panel’s recommendations into consideration and approved a vehicle rate increase of 3.4% overall, instead of the 5.2% which SGI initially applied for. The governement also approved a rate rebalancing and a 1% increase to the capital amount on all rates. “Saskatchewan’s auto insurance rates will continue to be among the lowest in Canada,” Minister responsible for SGI Don McMorris said.  “Rate rebalancing is necessary to ensure fairness. Our government is hopeful that the work done by SGI and the Motorcycle Review Committee, in addition to the current review of automobile injury coverage, will have a positive impact on future insurance rates.” The Rate Review Panel’s reccommedations to include motorcycles in the rebalancing was also approved by the government, their claims will drop to $5.6 million compared to $7.2 million if there were no changes to current motorcycle premiums. 82% of Saskatchewan vehicle owners will receive a rate increase, with an average increase of $44 per year while 17% of vehicle owners will be receiving a rate decrease with an average decrease of $12 annually. The remaining vehicle owners will see no change to their rates. To help reduce rate shock, vehicle groups with annual rates greater than $1,000 will be capped at a maximum increase of 10%, while those with annual rates less than $1,000 will have dollar caps ranging from $17 to $100. The rate cap amounts are based on the SRRP’s recommendation that rate increases be capped at two-thirds of the level originally proposed by SGI. Vehicle owners who have already insured their vehicles past Aug. 31 will automatically receive a refund for amounts in excess of five dollars 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 will apply the next time the owner completes a vehicle transaction on or after August 31, 2014, usually the next time they renew their plate insurance. via Local News http://ift.tt/1qxU2Wb

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