Saskatchewan Government Insurance (SGI) has raised auto insurance rates for the province’ various light vehicles.
Effective May 21, the insurer chose to raise its rates to match the Canadian Loss Experience Automobile Rating (CLEAR) damage rate group table. These changes will be the first in Saskatchewan since 2014.
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"These adjustments are revenue-neutral, they will not generate any extra money for SGI," Minister Joe Hargrave said. "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."
CBC reported that going forward, SGI would update its rates annually based on increases to the CLEAR table.
Under the CLEAR system, every light passenger vehicle make, model, and year available in Canada is accordingly rated based on the number of claims and costs per claim associated with that particular automobile build.
The CLEAR system also looks at the probability that a particular car will be stolen.
Due to the CLEAR system, rates for 406,000 vehicles will increase by an average of $2.75 per month, with a maximum of $12.25 per month for a luxury car. On the other hand, the rates of 434,000 vehicles will decrease by an average of $2.58 per month. About 2,000 vehicles will not be affected.
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