The provincial government of Saskatchewan recently approved a request by Saskatchewan Government Insurance (SGI) to change its auto insurance rates for light vehicles.
The rate changes, which take effect on May 21, were proposed to reflect the changes brought about by the updated Canadian Loss Experience Automobile Rating (CLEAR) system. The change will be the first since 2004.
Learn more about public administration insurance here.
“These adjustments are revenue-neutral, they will not generate any extra money for SGI,” Minister Responsible for SGI Joe Hargrave told Global News.
“We know that currently, owners of certain makes and models of vehicles are paying more than their actual costs, and others are paying too little. These adjustments are about ensuring fairness when it comes to insurance costs.”
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
The CLEAR system lists every light passenger vehicle, make, model and year available in Canada. For each vehicle, the system assigns a rating based on expected number of claims, cost per claim, and even the probability of the vehicle being stolen.
Auto insurers across the country often use the CLEAR table as a reference. Rates for light vehicles are adjusted each year to match the updates on the table in most jurisdictions.
Global News reported that the rates for 434,000 vehicles will decrease by an average of $2.58 a month. The rates for another 406,000 vehicles will increase by an average of $2.75 per month, with the maximum possible increase being $12.25 (for a top-of-the-line Ferrari).
Related stories:
SGI extends photo radar program indefinitely
Insurer and homeowner sue suspects in drug-related fire
