Several motorcyclists have voiced their concerns that Saskatchewan Government Insurance’s (SGI) proposed insurance rates are too pricey.
The insurer recently proposed changes to auto insurance rates to ensure that all policyholders pay just enough to cover the cost of claims for their respective vehicle group. While the changes would see about 52% of Saskatchewan vehicles seeing an average annual reduction of $102, most motorcyclists face increases.
“It’s just beyond the affordability of most people’s wallets anymore,” said Dun Fuller, a motorcyclist and a member of the group Riders Against Government Exploitation.
Fuller told CTV News that he already pays about $3,000 annually to license a motorcycle, and that cost is expected to increase by 10% more following SGI’s changes. He also noted that since 2013, Saskatchewan motorcyclists have been paying some of the highest rates not just in Canada, but in North America.
“SGI continues to raise rates, instead of dealing with the actual problem of licensing and safety,” Fuller said.
SGI explained that there is currently a shortfall between what is currently paid into the Auto Fund by motorcyclists and the amount paid out in claims. The insurer stated that its proposed changes to motorcycle rates would bring them closer to the amount needed to cover claims.
CTV News reached out to SGI for comment on the matter, but the insurer declined to comment on its rate filing as the proposed increase is still being reviewed by the Saskatchewan Rate Review Panel. But the insurer did give a breakdown of motorcycle insurance rate costs.
“The cost to fix or repair the motorcycle is a fraction of the total cost of a typical motorcycle crash,” the corporation said in a statement. “Most of the premiums motorcycle owners are paying goes to providing benefits to riders injured in collisions, accounting for more than 75% of motorcycle claim costs.”
The insurer also highlighted that motorcycle riders are more likely to be seriously injured in a collision than car drivers due to the lack of occupant protection. SGI noted that the average cost for a motorcycle injury claim is $90,000, compared to $22,000 for a private passenger vehicle injury claim.
