SGI raises car insurance rates for some light vehicles, decreases rates for others
Customers who see increase will see rates go up average $2.75 per month
Saskatchewan Government Insurance (SGI) has upped auto insurance rates for light vehicles effective May 21.
The rates have been increased to match the Canadian Loss Experience Automobile Rating (CLEAR) damage rate group table.
The CLEAR table, which uses insurance claims data, helps insurers assess how likely it is that a specific vehicle will be involved in a claim and what that claim will likely cost.
This includes claims caused by collisions, weather events, theft and other circumstances.
"These adjustments are revenue-neutral, they will not generate any extra money for SGI," Minister Responsible for SGI Joe Hargrave said in a statement. "We know that currently, owners of certain makes and models of vehicles are paying more than their actual costs, and others are paying too little.
"These adjustments are about ensuring fairness when it comes to insurance costs."
Going forward, SGI will update rates annually based on increases to the CLEAR table.
Determining customer rates
Every light passenger vehicle make, model and year available in Canada is rated according to the CLEAR system.
Besides number of claims and cost per claim, it also looks at the probability that a particular vehicle will be stolen.
All those numbers point to specific insurance rates. A lower risk of claims means lower rates, while a higher risk of claim means higher rates.
Auto insurers across Canada use the CLEAR table.
The rate adjustments will apply to private passenger vehicles, light farm vehicles and light commercial vehicles. These will be the first changes to vehicle rates in Saskatchewan since 2014.
Rates for 406,000 vehicles will increase by an average of $2.75 per month, with the maximum increase being $12.25 per month for a high-end Ferrari. Rates for 434,000 vehicles will decrease by an average of $2.58 per month.
About 2,000 vehicles will see no change.
SGI customers can check their vehicle's rate on the company's 2017 rate changes page.