Released on July 14, 2004
SGI is applying to the Saskatchewan Rate Review Panel to request approval of a 10 per cent rate increase effective January 1st, 2005."SGI is requesting the increase primarily because we're not taking in enough premiums to cover the cost of claims," SGI President Jon Schubert said. "This would be the first rate increase in Saskatchewan since 2000. Even with an increase in 2005, SGI's customers will still be paying the lowest auto insurance premiums in the country."
Additional revenue from the rate increase will also be used to more than double the vehicle insurance discounts provided under the Safe Driver Recognition program to a maximum of 20 per cent and the Business Recognition program to 10 per cent.
"The increase in discounts responds to the desire of our customers to provide bigger rewards for safe drivers who aren't costing money through claims," Schubert said.
"The safe driving history of customers will offset premium increases for most vehicle owners. SGI estimates approximately 60 per cent of private passenger vehicle owners will see decreases, and about 40 per cent will see increases to their vehicle premiums. Overall, most customers will pay less, some will pay more," Schubert said.
Revenue to SGI will increase by four per cent, as the additional six per cent will be paid out in discounts. In total, safe drivers will earn nearly $60 million in discounts in 2005, an increase of $34.8 million over 2004.
To see SGI's complete submission to the Saskatchewan Rate Review Panel, please visit the SGI web site at www.sgi.sk.ca or call the SGI Customer Service Centre toll-free at 1-800-667-9868 to have a copy mailed to you.
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For More Information, Contact:
| Julianne Jack SGI Regina Phone: (306) 775-6907 |