SGI is implementing a revenue-neutral rebalancing of Auto Fund rates. The crown corporation announced Monday that most drivers will see their rates adjusted.
Around 49% of customers will see a decrease of their rates while 51% will receive an increase.
Minister responsible for SGI, Don Morgan says the rate changes set to take effect on April 1st won’t apply to taxis and motorcycles.
“We’d like to work with the taxi business to try and get their technology working so they’re on a level playing field (with ridesharing companies like Uber), motorcycles we got to do some work to reduce the number of claims. They’ve (SGI) done that in the past and we’d like to be able to do that again.”
The rate changes follow feedback from the public and stakeholders during a rate review process.
Morgan adds no one will see an annual increase higher than 10% on premiums higher than a thousand dollars and a dollar cap of $100 dollars for premiums under a thousand dollars.
SGI says this will provide stability for vehicle owners and will move SGI closer to rate fairness across different vehicle types.
Morgan says now is not the time to once again issue rebates to SGI customers given that the market is somewhat turbulent.
“We saw during 2020 the value of the fund changed up and down 500 million dollars in a relatively short period of time. It’s back stable again. So we just think it’s not a good time to go through that, but certainly the point I would make is this money (Auto Fund) is money that accumulated in this fund, belongs to the people of Saskatchewan and when appropriate should be paid out to them.”
Minister Morgan says the fund has about a billion dollars which is the anticipated amount.