Sask. to cap motorbike rate hikes, others to pay extra
The Saskatchewan government has followed through on a promise to angry motorcycle riders — whittling down proposed whopping increases to insurance rates.
But now more people who use other vehicles will pay more.
Under a new proposal ordered by the minister responsible for Saskatchewan Government Insurance that will be going to the rate review panel, increases will be capped at 15 per cent if a user's motorcycle insurance costs more than $1,000.
If it's less than that, the maximum yearly increase will be capped at $150.
SGI had originally proposed, in February, rebalancing a wide range of rates to better reflect who was causing higher costs.
Motorcycles were singled out for big increases, SGI said, because of extremely high injury claims.
While the average motorcyclist was looking at paying 73 per cent more, some users of large, older bikes could have seen their rates quadruple.
Motorcycle users were furious and soon politicians were inundated by complaints. Premier Brad Wall said earlier this month he would consider talking to SGI.
At the time SGI released its original rate proposal, the company said it was unfair to expect the rest of Saskatchewan drivers to subsidize motorbike users.
Now, that appears to be the way things are going.
With the new government-mandated caps on motorcycle insurance, about 63 per cent of all vehicle owners will see insurance increases, compared to 57 per cent under the old proposal.
With all the increases and decreases put together, SGI is expecting a net increase of about 2.27 per cent in revenues, effective August 31. One percentage point of that increase is just for three years and will be used to replenish SGI's rainy day fund.
Still to come is the rate review panel's recommendation. Cabinet will have final say.