Saskatoon Traffic

Most motorists will see their insurance rates go up, if Saskatchewan Government Insurance has its way. (CBC)

Saskatchewan's Rate Review Panel is recommending a slightly smaller overall rate hike for auto insurance offered by SGI, the government-owned Crown corporation. SGI's hike should be 4.4 per cent instead of 5.2 per cent.

The final say on rates rests with the provincial cabinet.

SGI proposed two elements affecting insurance rates:

1.) A rebalancing of rates, so vehicles with a higher claims history will see higher rates while those with a lower history will see a drop.

2.) A surcharge, for all insured vehicles, to replenish insurance reserves.

According to the panel, a 4.4 per cent hike, overall, should be enough for SGI to meet its needs.

The panel also recommended that a rate cap, to avoid large increases, should be in place but the cap should be two-thirds of what SGI asked for.

SGI also proposed that motorcycles not be included in the rebalancing of rates. But the review panel rejected that idea and said motorcycles should be part of that process.

SGI's insurance rates, for vehicles, are designed to be revenue-neutral over time.