On Friday, SGI announced a proposal was submitted to the Saskatchewan Rate Review Panel (SRRP) recommending increases to provincial auto fund rates.
The proposal outlines rate changes for the majority of vehicles, with SGI also proposing a 1.23 per cent surcharge on rates applied for three years.
The new proposed rates for all vehicles can be found on the SGI website. If the proposal is approved, the rate changes would be effective this Aug. 31.
The largest jump in insurance costs to cause a bump in the road is the proposed change for provincial motorcycle insurance.
To offer an example of the the price jump, a person with a cruiser/touring bike model between 2011 and 2013, with an 1,101 cc or greater engine is currently paying $1,766 a year for insurance. Under the new proposal, the same bike would cost $2,553 to insure.
"Crotch rocket" jockeys will feel the pinch the most. A rider with a sport bike class from 2011 to 2013 with a 1,101 cc or greater engine is currently paying $2,336. The proposed change would see a jump to $5,661.
“Under the proposal, increases to motorcycle rates will not be capped,” SGI stated in the news release. “As a group, motorcycle rates are substantially lower than what is required to cover their claim costs. It is proposed that motorcycle rates be fully corrected to end subsidization of their claim costs by other vehicle owners.”
“Again this year, we see increased wages affecting injury claim costs, higher costs for auto parts and declining bond and investment yields, which all contribute to the need for increased revenue,” said SGI President and CEO Andrew Cartmell. “The Auto Fund operates on a break-even basis and these changes are required to cover claim costs in the next rating year.
For more on this article pick up the next issue of the TImes-Herald.
