Released on May 8, 2007
The Provincial Government has approved an average general rate decrease of 7.1 per cent for auto insurance premiums, with rate rebalancing, effective July 1, 2007. The decrease was recommended by the Saskatchewan Rate Review Panel in its report to government.
“We agree with the Panel’s recommendations and we will direct SGI to implement the rate decrease, with rate rebalancing, effective July 1,” Crown Investments Corporation Minister Maynard Sonntag said.
“About 531,000 Saskatchewan vehicles (63 per cent) will see their rates decrease, with the average decrease about $80. However, because SGI needs to rebalance rates to ensure fairness across vehicle classes, about 209,000 vehicles (25 per cent) will see rate increases, with the average increase about $18. Another 99,000 vehicles (12 per cent) will not have any rate changes.”
SGI had requested an average five per cent general rate decrease with rate rebalancing because the surplus in the Saskatchewan Auto Fund’s Rate Stabilization Reserve was above its target. Based on actuarial information provided by SGI, the Panel recommended an average general rate decrease of 7.1 per cent with rate rebalancing.
“Saskatchewan motorists already enjoy the lowest auto insurance rates in the country,” Sonntag said. “This further decrease makes Saskatchewan an even more attractive place to live, especially for young people who would pay significantly more for auto insurance in other provinces.”
The Panel endorsed SGI’s approach to rate rebalancing and recommended that it make annual rate submissions on behalf of the Auto Fund for the next few years.
“We agree with that recommendation because regular rate submissions will ensure more fair and equitable rates for Saskatchewan motorists as well as gradual, rather than significant, rate increases or decreases for vehicle classes,” Sonntag said.
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For more information, contact:
Karen Schmidt
Crown Investments Corporation
Regina
Phone: 306-787-5889
Email: kschmidt@cicorp.sk.ca