IBAS says half of Saskatchewan drivers don’t have proper auto insurance

Published: May 24, 2019

Updated: June 3, 2019

Author: Luke Jones

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The Insurance Brokers Association of Saskatchewan (IBAS) says only half of motorists in the province have sufficient auto insurance protection for their needs.

In a new report, IBAS says around half of drivers in Saskatchewan more than the province’s minimum $200,000 in third-party liability coverage. $200,000 is the mandated liability that all motorists must have through Saskatchewan Government Insurance (SGI), but in many cases more liability coverage is needed.

Nearly half of drivers in the province don’t have enough additional protection. IBAS points out the amount of drivers with only basic third-party liability coverage is far below neighbouring Manitoba, where around 90% of all motorists have liability coverage of at least $1 million.

“Saskatchewan’s public auto insurance system is unlike any in the country, and it is one of the most stable and affordable,” IBAS CEO Derek Lothian mentioned in a statement. “But the fact remains many drivers in the province don’t understand basic insurance is not enough to properly protect themselves from all accidents — especially those caused by them and their vehicles.”

Lothian says the drivers without sufficient coverage are “a significant consumer and public safety risk and must be addressed.”

SGI has joined forces with CAA to help spread awareness about have enough third-party liability. The public insurer’s communications manager Tyler McMurchy said around half of the 815,000 licensed motorists in Saskatchewan need more coverage.

“We don’t dispute the numbers from the Insurance Broker’s Association of Saskatchewan, where they estimate about half of drivers don’t have any additional insurance beyond the basic plate insurance,” he said.

Terry MacDonald, vice-president of insurance services for CAA Saskatchewan, said the whole industry must collaborate to improve auto insurance.

“The goal is to make sure that the folks doing motor licensing services are properly educated about basic plate insurance and extension auto insurance. So, we want to educate our service providers. Then we want to educate the public. And then we want to make it an easy process,” said MacDonald.