The Saskatchewan Auto Fund is applying to the Saskatchewan Rate Review Panel (SRRP) for a rate increase and rate rebalancing which will result in an average increase for customers of 4.2 per cent, effective November 1, 2009.
The SRRP will receive this request on May 1 once they have completed their work on the SaskPower rate application.
If approved, this proposal would result in 553,000 Saskatchewan vehicle owners (55 per cent) seeing their rates increase less than $5 per month, on average $55 annually. It would also result in 321,000 vehicle owners (32 per cent) seeing no change to their rates, and 126,000 vehicle owners (13 per cent) receiving an average rate decrease of $21 annually.
The last Auto Fund rate increase was 2000. SGI offers the lowest average insurance rates for private vehicles in Canada, based on a comparison of the 34 most frequently registered vehicles in Saskatchewan.
"With more new vehicles on the road, the cost to repair vehicles is increasing, and the cost of auto injury claims is growing due to increased income replacement benefits as Saskatchewan’s wages are increasing," Crown Corporations Minister Ken Cheveldayoff said.
"In addition, the Auto Fund’s finances are impacted by changes to its investment income. Investments form a significant portion of an insurance company’s asset base and helps keep auto premiums low," Cheveldayoff said. "The significant downturn in global investment markets in the last half of 2008 resulted in a significant decrease in investment earnings for the entire insurance industry."
Rates are determined based on the actual risk each vehicle make, model and year represents for being involved in a claim and the actual costs of paying that claim. Some examples of vehicle rates, before safe driving discounts, include:
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