Released on February 1, 2007
Thanks in part to safer driving by Saskatchewan motorists, SGI is returning $100 million to its customers through a rebate on their 2006 auto insurance premiums. In addition, SGI has applied to the Saskatchewan Rate Review Panel for a general rate reduction of five per cent with rate rebalancing, which would mean more than half of SGI customers will be paying less for their auto insurance.
“SGI’s Auto Fund is currently in the strongest financial position in its history, due mainly to reduced claim costs, solid investment earnings and growth in premium revenue as customers upgrade to newer vehicles,” Minister responsible for SGI Glenn Hagel said. “The Auto Fund earned an estimated $90 million in 2006, leaving its Rate Stabilization Reserve with an estimated balance of $196 million. Consequently, over half a million Saskatchewan vehicle owners will earn an almost 17 per cent rebate on the insurance premiums they paid for 2006 coverage.”
The rebate applies to both privately-owned and commercial vehicles and will be calculated on a customer’s vehicle insurance premium, prior to any discounts or surcharges earned through the Safe Driver Recognition or Business Recognition programs. Rebate cheques will be mailed to customers in mid-April, with an average rebate of about $180.
SGI has also applied to the Saskatchewan Rate Review Panel to generally reduce rates by five per cent with rate rebalancing, which would mean about 448,000 Saskatchewan vehicles (53 per cent) would see a reduction in their rates. The average decrease would be $68.
“Saskatchewan motorists already enjoy the lowest auto insurance rates in the country, and now SGI is applying to reduce them further,” Hagel said. “This makes Saskatchewan an even more attractive place to live, especially for young people who would pay significantly more for auto insurance in other provinces.”
Under SGI’s rate application, about 33 per cent of vehicles would see an increase, with an average rise of $16. The remaining 14 per cent of vehicles would see no rate change. Overall, SGI would take in five per cent less in premiums, equalling about $28 million. SGI is seeking approval for the new rates to take effect July 1, 2007.
The Saskatchewan Rate Review Panel will review SGI’s application and provide a recommendation to the government, which will then instruct the corporation on how to proceed. To see SGI’s complete application, please visit the SGI website 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.
More information on the rebate is also available on SGI’s website. Related visuals can be downloaded from the Media Kit at www.sgi.sk.ca.
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For more information, contact:
Kim Hambleton
Saskatchewan Government Insurance
Regina
Phone: 306-775-6907
Email: khambleton@sgi.sk.ca