Saskatchewan Government Insurance (SGI) will be issuing a total of $285 million in auto insurance rebates to customers – the largest amount ever issued by the insurer.
Drivers in Saskatchewan who insured their vehicle between January 01, 2018 and December 31, 2020 will each receive a rebate averaging $380. The insurer is anticipating that over 700,000 customers will be mailed rebate cheques for more than 1.7 million vehicles licensed in the province.
"These rebates will provide a significant injection, to the tune of $285 million, into the provincial economy at a time when we can all recognize that this will certainly be a very welcome boost," said Minister Responsible for SGI Don Morgan.
"It's fair to say that this will certainly be the largest [rebate] that SGI's ever done by a good measure."
CBC News reported that the one-time rebates are calculated based on insurance premiums – specifically, a customer’s average annual premium over a three-year period, as 26% of that amount will be given back in the form of rebates. The rebates cover leased vehicles and vehicles only licensed for a portion of the year and will be mailed to businesses, organizations and individuals; they will not apply to permits.
Morgan also explained that SGI is issuing the rebate from a surplus in the insurer’s rate stabilization reserve, which benefited from sound investments and fewer collisions during the pandemic.
"People tended to stay home for a big portion of that period of time. We went through a winter that did not have a lot of bad weather when people were driving," the minister said.
