The provincial cabinet has approved an overall hike to insurance rates in Saskatchewan.
There are three elements to the increases:
- Overall hike for everyone: 1.03 per cent.
- Rate rebalancing: Adjustments to rates based on claims history for groups of vehicles. (Some rates will go up, some will go down, some will stay the same — except for the overall hikes.)
- A one-year surcharge applied to all rates: 1.23 per cent. (One-year only to replenish the auto fund.)
The province also decided to move forward with a rate hike for motorcyclists, but to limit the hikes.
The limits, which will be applied on all insurance rates including motorbikes, are:
- Vehicle groups with annual rates greater than $1,000 will be capped at a maximum increase of 15 per cent.
- Groups with annual rates less than $1,000 will have dollar caps ranging from $25 to $150.
The issue of rates for motorcyclists was a hot topic when the insurer, SGI, first put forward its request for higher rates. In February, SGI announced it wanted to boost motorcycle insurance rates an average of 73 per cent.
The new rates will take effect Aug. 31.