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SGI proposing rate hikes
Cars plow through snow on a highway in the early morning in Toronto, Friday, Feb. 8, 2013.
Published Friday, February 15, 2013 4:25PM CST
SGI is looking for permission to increase the price of their auto insurance.
The public insurance company submitted a proposal to the Saskatchewan Rate and Review Panel (SRRP) for a net increase of 1.03 per cent to their auto fund rates, and they’re also proposing a 1.23 per cent surcharge on rates which would be applied for three years.
The proposal includes rebalancing, which SGI said helps to ensure fairness in ratings. It considers the number and severity of collisions and damage for every vehicle make and model, to make sure that each vehicle class is covering its own costs.
If their proposal is approved, about 57 per cent of vehicles would see a hike in their insurance rates, and the remaining 43 per cent will either see no changes or a decrease in their rates.
SGI’s president and CEO explained in a press release that they’ve seen increased wages affect claim costs, higher costs for auto parts and decking bond investment yields – and with higher operational costs, the insurance company needs to up their revenue to balance out.
Those who prefer two wheels to four could see a few big changes. Under the new proposal, increases to motorcycle rates won’t be capped. According to SGI, under the current rates, motorcycle rates are significantly lower than what’s needed to cover their insurance claims.
“In Saskatchewan, motorcycles are a recreational vehicle, not a primary vehicle for year-round use, and their injury claim costs are excessive,” SGI President and CEO Andrew Cartmell said in a release.
“We debated this issue, but in the end we simply felt it wasn't fair for other vehicle owners to continue to pay more than they should in order to subsidize the rates for this vehicle group.”