Roughly 51 per cent of customers will see an increase in their Auto Fund premiums, while 49 per cent will see a decrease after the SGI announced plans to implement a revenue-neutral rate rebalancing on Monday.
The changes will not affect motorcycle or taxi rates. Rate increases will be capped to provide stability for vehicle owners. The provincial government said this will move SGI closer to rate fairness across the board.
“SGI customers will continue to benefit from among the lowest basic auto insurance rates in Canada,” Don Morgan, Minister Responsible for SGI, said in a release.
“A revenue-neutral rate rebalancing demonstrates SGI’s commitment to fairness across vehicle types.”
Rate rebalancing means that some vehicle classes will have rate increases and others will have decreases. Overall, it will result in a net-zero change in revenue to the Auto Fund, although most drivers will see their rates adjusted.
SGI said no customers will see an annual increase higher than 10 per cent if their premier is higher than $1,000. There is also a dollar cap of $100 for premiums under $1,000.
SGI made both those decisions after receiving feedback from stakeholders and the public during the rate review process.
SGI will also adopt t Saskatchewan Rate Review Panel recommnendations around enhancements to filing standards, and information in future rate applications.
SGI provides short-term auto insurance coverage through 24-hour and 8-day permits. In-transit permits and temporary insurance cards provide coverage for inter-provincial use to transport a newly acquired vehicle.
They will also be adjusting permit fees because permit fees have been the same for years and as a result aren’t priced appropriately for the corresponding insurance risk – especially given that permits provide full injury coverage in the event of a collision.
The new permit rates reflect the actual risk each vehicle represents for being involved in a claim, and the actual costs of paying that claim.
The price of a 24-hour permit will be increasing from $20 to $26. The price of an eight day permit will increase from $48 to $73. In-transit permits will increase from $30 to $43. Temporary insurance cards will increase from $11 to $28. (All prices subject to PST.)
All of these changes will be implemented on April 1, 2022.