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Trusted Saskatoon Insurance Experts share a tip on the SGI rate changes

Trusted Saskatoon Insurance Experts shares a tip on the SGI rate changes:

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SGI rate changes effective Aug. 31, 2013

SGI is implementing rate changes for its basic licence plate insurance rates - some rates will go up, some will go down and some will stay the same. Rate changes (both increases and decreases) will be capped based on the following table, however please note that many increases and decreases will be less than the maximum:

Current annual

Maximum rate

$1 – 50


$51 – 100


$101 – 250


$251 – 500


$501 – 750


$751 – 1,000


$1,001 or greater


In addition to the rate changes, SGI is applying a rate surcharge of 1.23% on every vehicle insurance rate in order to replenish the Rate Stabilization Reserve (RSR). The RSR is like a savings account to cover emergencies. It ensures customers are protected in the event of much higher than expected claims costs or much lower than expected investment income. The surcharge is applied equally to every vehicle rate; however, the 1.23% will be applied to the vehicle rate after any increase or decrease resulting from the rate change.

Rates are determined based on the claim costs for each vehicle make and model. As a result:

  • 63% of Saskatchewan vehicle owners are receiving a rate increase.
  • 35% are receiving a rate decrease.
  • 2% won't have any change to their rates.

How does this affect you?

The effective date of the new rates is Aug. 31, 2013. Rate increases are applied the next time a vehicle transaction takes place on or after that date (usually the next time you renew your plates). Rate decreases, on the other hand, apply immediately on Aug. 31 and eligible vehicle owners automatically receive a refund for the difference between their old rate and new rate for the remainder of their registration term after     Aug. 31.

The rates in the attached notice may differ from the rates you paid for your last renewal. If you want to see how vehicles you own are affected, please visit

Why did SGI change rates?

Rates are determined based on the actual risk each vehicle represents for being involved in a claim, and the actual costs of paying that claim. We're seeing rising claim costs for both injuries and vehicle damage, combined with declining investment income. A rate change was needed to ensure SGI is financially positioned to cover all of its operating expenses and claim obligations on a break-even basis.

Why does SGI need a rate surcharge?

Currently, the RSR balance is below the minimum required level and a 1.23% surcharge is required to get the balance back up to the minimum required level.

What's the difference between the rate change and the surcharge?

The rate change is needed to cover expected claim costs and other expenses for the one-year period (Aug. 31, 2013 to Aug. 30, 2014) and is not intended to contribute to the balance of the RSR.

The surcharge is needed to increase the balance in the RSR. The RSR acts as a cushion to protect customers in case of unexpected events such as much higher than expected claims costs or much lower than expected investment income.

Older model years

Owners of older model vehicles often wonder why their insurance rate seems high compared to how much their vehicle is actually worth. This is because your plate insurance covers you for much more than just damage to your vehicle. Basic licence plate insurance provides coverage for damage you cause to someone else's property (liability), injury coverage should you be injured in a collision or cause injuries to someone else, as well as damages to your own vehicle. While the value of your vehicle may not be significant, the cost of providing injury and liability insurance has been increasing year-over-year. The following chart shows the rate for injury, liability and expense costs required from private passenger vehicles in order to break even, by body style:

Body Style

Required Rate*

Four-door car


Two-door car


Convertible car


Station wagon


Sport utility vehicle






So as you can see from this table, even if your vehicle is worth very little you still need to pay, at minimum, these amounts to cover these types of claim costs.

*This does not include the rates for damage coverage.

Have questions?

Please visit the SGI website at or call our Customer Service Centre toll free at





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129 21st St E #400
Saskatoon, SK   S7K 0B2
Ph: 306.244.4150


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