Government has approved a request by Saskatchewan Government Insurance (SGI) to change auto insurance rates for light vehicles to match updates to the Canadian Loss Experience Automobile Rating (CLEAR) damage rate group table. Changes take effect May 21, 2017.
Going forward, SGI will update rates annually basedonchangestothetable. Thiswillkeep Saskatchewan rates for light vehicles in step with their likelihood of being in a claim and the cost to repair those claims. This includes claims caused by collisions, weather events, theft and other circumstances.
“These adjustments are revenue-neutral, they will not generate any extra money for SGI,” Minister Responsible for SGI Joe Hargrave said. “We know that currently, owners of certain makes and models of vehicles are paying more than their actual costs, and others are paying too little. These adjustments are about ensuring fairness when it comes to insurance costs.”
Every light passenger vehicle make, model and year available in Canada is rated according to the CLEAR system. It looks at each type of vehicle based on expected number of claims and cost per claim, as well as the probability the vehicle will be stolen. This helps determine insurance rates. A lower risk of claims means lower rates; a higher risk of claim means higher rates.
The CLEAR table is used by auto insurers across Canada. Inmostotherjurisdictions,ratesfor light vehicles are adjusted annually to match updates to the table.
The changes will mean some minor rate adjustments for light vehicles including private passenger vehicles, light farm vehicles and light commercialvehicles. These will be the first changes to vehicle rates in Saskatchewan since 2014.
Rates for 434,000 vehicles will decrease by an average of $2.58/month. Rates for another 406,000 vehicles will increase by an average of $2.75/month with the maximum increase being $12.25/month (for a high-end Ferrari). Approximately 2,000 vehicles will see no change.
SGI customers who want to see how their vehicle’s rate is impacted can visit www.sgi.sk.ca/2017ratechange.
The Saskatchewan Auto Fund is designed to be financially self-sustaining over time. It does not receive money from, nor pay dividends to, the government.
Any other customer inquiries can be directed to SGI’s Customer Contact Centre, at 1-800-667- 9868 or firstname.lastname@example.org.