By Adriana Christianson

Hike in motorcycle insurance rates capped in Sask. government proposal

Mar 14, 2013 | 4:44 PM

A cap of 15 per cent or $150 on hikes to motorcycle insurance is good news for bikers, but it means other drivers will pay a little more next year.

Claims from at-fault motorcycle accidents require an increase of $9 million in revenue for SGI, and that money has to come from somewhere.
Instead of putting through a proposed rate hike averaging 77 per cent for motorcycles, the government wants SGI to rebalance rates for other drivers.

Under the new government proposal, 63 per cent of all drivers will be facing an average increase of $35 in a year, instead of $28.

Speaking to reporters outside the Legislature, the minister in charge of SGI, Donna Harpauer pointed out that revenue from other drivers has always gone towards paying for a higher number of claims on motorcycle crashes.

“We’re leaving it with other drivers subsidizing motorcycles but I think there will be understanding that we are going to work at options,” she commented.

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Harpauer says this direction is in response to an outcry from motorcyclists who said 77 per cent was too much too soon.

“I’m hoping that with this input it will sort of quell the anger that was going to go to the rate review panel,” she said.

Harpauer also expects to hear from other drivers about this issue, but points out that there would be rate increases anyways, regardless of subsidizing motorcycle claims.

She feels drivers will understand this step in the short term because the long term goal is to minimize subsidization of motorcycle claims from by other drivers.

“There is some work that needs to be done and some time that we’re going to need to be able to do it,” Harpauer explained.

Harpauer is also asking SGI to review options to reduce the high claims cost, looking at things like safety ratings, death claims and injury benefit levels.

All changes to insurance rates for vehicles are pending approval by the Saskatchewan Rate Review Panel. Drivers also won’t see any changes until after Aug. 31, 2013.

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