By: Luke Jones, Published on May 20, 2017 03:23 PM, Last Update on May 29, 2017 12:23 PM
Saskatchewan Government Insurance (SGI) has increased the prices of two areas of auto insurance premiums in Saskatchewan. The crown corporation public insurance provider says rates are increasing for some light vehicles. In a press release, the company also says premiums will be decreasing for some customers of other vehicles.
SGI says the rates have increased to meet the Canadian Loss Experience Automobile Rating (CLEAR) damage rate group table. All changes will come into effect May 21, 2017.
CLEAR is a table of insurance claims data that allows insurance providers to assess the possibility of specific vehicles being involved in a claim, and how much claims would cost. It looks at claims caused by weather, theft, collision, and other reasons.
"These adjustments are revenue-neutral, they will not generate any extra money for SGI," Minister Responsible for SGI Joe Hargrave said in a statement. "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."
The CLEAR table holds data for every light passenger vehicle in Canada, including its make, model, and year. Aside from claims data, the table also references the chance of these vehicles being stolen. By accumulating all the data, insurance companies can determine how much a specific vehicle should cost to be insured.
For example, if vehicle A is more frequently stolen than vehicle B, and all other criteria is equal, there is a good chance vehicle A will cost more to insure. If the risk is lower, claims are lower, and additionally premiums are lower.
SGI says the rate adjustments will be in effect for light farm vehicles, light commercial vehicles, and light passenger vehicles.
2,000 vehicles will be unaffected, but 406,000 vehicles will have a premium increase of $2.75 per month, with a maximum increase of $12.25. A further 434,000 vehicles will have a premium decrease average of $2.58 per month.