SGI is implementing rate changes for its basic licence plate insurance rates - some rates will go up, some will go down and some will stay the same.
Rate changes (both increases and decreases) will be capped based on the following table, however please note that many increases and decreases will be less than the maximum:
|Current annual rate||Maximum rate increase/decrease|
|$1 – 50||$25|
|$51 – 100||$50|
|$101 – 250||$75|
|$251 – 500||$100|
|$501 – 750||$125|
|$751 – 1,000||$150|
|$1,001 or greater||15%|
In addition to the rate changes, SGI is applying a rate surcharge of 1.23% on every vehicle insurance rate in order to replenish the Rate Stabilization Reserve (RSR). The RSR is like a savings account to cover emergencies. It ensures customers are protected in the event of much higher than expected claims costs or much lower than expected investment income. The surcharge is applied equally to every vehicle rate; however, the 1.23% will be applied to the vehicle rate after any increase or decrease resulting from the rate change.
Rates are determined based on the claim costs for each vehicle make and model. As a result:
- 63% of Saskatchewan vehicle owners are receiving a rate increase.
- 35% are receiving a rate decrease.
- 2% won't have any change to their rates.
To see how your vehicle's rate is affected, check here:
How does this affect you?
The effective date of the new rates is Aug. 31, 2013. Rate increases are applied the next time a vehicle transaction takes place on or after that date (usually the next time you renew your plates). Rate decreases, on the other hand, apply immediately on Aug. 31 and eligible vehicle owners automatically receive a refund for the difference between their old rate and new rate for the remainder of their registration term after Aug. 31. If you're entitled to a refund, you don't need to do anything - SGI will automatically mail you your refund.
Refund cheques will be mailed in mid-September, so please allow a reasonable amount of time for them to make their way through the postal service.