Most drivers in Saskatchewan will pay nearly $50 more for car insurance if the latest rate increase from the provincial insurer wins approval.
Saskatchewan Government Insurance (SGI) announced on Tuesday that it has submitted a proposal to the province’s Rate Review Panel to hike rates by an average of 5.2 per cent to keep pace with growing auto body labour prices.
“The number of claims in the province continues to grow and auto body labour rates are set to increase 10 per cent per year for the next three years,” Andrew Cartmell, President and CEO of SGI said in a press release. “The Auto Fund operates on a break-even basis so it is important to ensure an adequate balance in the Rate Stabilization Reserve to cushion against unforeseen circumstances.”
Around 84 per cent of drivers in the province would face a $49 annual rate increase, while the remaining 16 per cent would actually see an average reduction of around $12.
If approved, the rate increase would go into effect at the end of August.