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Light vehicles only: SGI announces new insurance rates

Mar 31, 2017 | 2:00 PM

Beginning in May, light passenger vehicle owners in Saskatchewan will see changes to their auto insurance rates.

The provincial government has approved a request by SGI to change auto insurance rates for light passenger vehicles to match updates to the Canadian Loss Experience Automobile Rating (CLEAR) damage rate group table.

“It’s all about fairness,” SGI Chief Financial Officer Jeff Stepan told battlefordsNOW. “By moving to the CLEAR table it just makes sure the rates for individual vehicles in regards to make, model and year reflect the cost of any accident claim.”

The CLEAR system looks at each type of vehicle based on the expected number of claims and cost per claims as well as the probability the vehicle will be stolen. This helps determine insurance rates. A lower risk of claims means lower rates and vice versa.

“These adjustments are revenue neutral and will not generate extra money for SGI,” Stepan said. “We know that currently some owners are paying more than their actual costs and others are paying too little.”

The CLEAR table is the industry standard used by auto insurers across Canada and in most areas rates for light vehicles are adjusted annually.

Rates for 434,000 light vehicles will decrease by an average of $2.58 per month while another 406,000 light passenger vehicles will see an increase of $2.75 per month.

The changes take effect May 21 and will be the first changes to auto insurance rates for SGI since 2014.

 

Email: roger.white@jpbg.ca

Twitter: @battlefordsNow