SGI requests first rate increase since 2000
April 6, 2009
The Saskatchewan Auto Fund is applying to the Saskatchewan Rate Review Panel (SRRP) for a rate increase and rate rebalancing which will result in an average increase for customers of 4.2 per cent, effective November 1, 2009.
The SRRP will receive this request on May 1 once they have completed their work on the SaskPower rate application.
If approved, this proposal would result in 553,000 Saskatchewan vehicle owners (55 per cent) seeing their rates increase less than $5 per month, on average $55 annually. It would also result in 321,000 vehicle owners (32 per cent) seeing no change to their rates, and 126,000 vehicle owners (13 per cent) receiving an average rate decrease of $21 annually.
The last Auto Fund rate increase was 2000. SGI offers the lowest average insurance rates for private vehicles in Canada, based on a comparison of the 34 most frequently registered vehicles in Saskatchewan.
"With more new vehicles on the road, the cost to repair vehicles is increasing, and the cost of auto injury claims is growing due to increased income replacement benefits as Saskatchewan's wages are increasing," Crown Corporations Minister Ken Cheveldayoff said.
"In addition, the Auto Fund's finances are impacted by changes to its investment income. Investments form a significant portion of an insurance company's asset base and helps keep auto premiums low," Cheveldayoff said. "The significant downturn in global investment markets in the last half of 2008 resulted in a significant decrease in investment earnings for the entire insurance industry."
Rates are determined based on the actual risk each vehicle make, model and year represents for being involved in a claim and the actual costs of paying that claim. Some examples of vehicle rates, before safe driving discounts, include:
|Vehicle||Current Rate||Nov. 1, 2009 Rate||Rate Change|
|2007 Toyota Camry||$1,049||$1,049||$0|
|2005 Dodge Grand Caravan||$1,050||$1,050||$0|
|2002 Honda Civic 2 Door||$933||$1,049||$116|
|2002 Ford Ranger Regular Cab||$768||$746||($22)|
|2001 Chevrolet S10 Pickup||$725||$755||$30|
|1997 Ford F150 Regular Cab||$761||$761||$0|
|1991 Chevrolet Cavalier||$567||$578||$11|
The application includes a maximum increase of 12.5 per cent for light passenger vehicles to a limit of $125 (average increase $64 annually) and maximum increases of 10 per cent for other vehicle classes, with the exception of:
- up to 25 per cent (average increase $230 annually) for sport motorcycles;
- up to 15 per cent for other motorcycles (average increases of $23 and $110 for dual purpose/other and cruiser/touring motorcycles respectively);
- up to 22.5 per cent (average increase $186 annually) for light commercial trucks that travel out of province;
- up to 17.5 per cent (average increase $89 annually) for taxis in rural areas; and
- up to 17.5 per cent (average $129 annually) for U-drive rental vehicles.
SGI will continue to offer safe driving discounts in 2009. Auto Fund customers received roughly $80 million in safe driving discounts through the Safe Driver Recognition and Business Recognition programs in 2008.
More information on the rate review process will be available at www.saskratereview.ca. A full copy of SGI's rate application will be available on this website on May 1.