Insurance spike in Saskatchewan

Discussion in 'Canada' started by skrider, Feb 17, 2013.

  1. skrider

    skrider 2011 Strom

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    On Friday, the government insurance agency announced it will bump motorcycle insurance rates an average of 73%. Some will even be more. His anyone else heard of such a dramatic jump? Since SGI thinks my vstrom is a "sportbike" already, I'm sure I'm about to get dinged hard! Story is at CBC.ca/sask (full disclosure, I work there). Interested in any thoughts.
    #1
  2. Steve G.

    Steve G. Long timer

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    That's a heck of a jump!! Do you think it's 'catch up time' for rates there, or are your rates already high? What's the average policy cost there?
    #2
  3. skrider

    skrider 2011 Strom

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    About to do some comparative math on that. Either we have been getting a deep discount, or we're about to overpay....
    I'd like to know if SGI has been losing money on bikes. I can't see any insurance company putting up with that.
    #3
  4. squiffynimrod

    squiffynimrod maximum shrinkage

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    I have been following this since Friday. Where did you get the 73% number? The CBC.ca/sask story (http://www.cbc.ca/news/canada/saskatchewan/story/2013/02/15/sk-sgi-rates-1302.html], as all the others I have seen, have no details as of yet. In SK, the rates proposed are subject to approval from the Sask Rate Review Panel (http://www.saskratereview.ca/]. In Feb. 2012, SGI proposed rate adjustments in this application to the SRRP: http://www.saskratereview.ca/images/docs/sgi-2012/proposal-for-saf-rate-adjustment.pdf (See section 5.17 on page 27] SGI indicated they needed a 76.1% increase on MC, and a 159% increase on sport bikes, to hit the break even point. They proposed caps that were much lower. The SRRP responded May 31 2012 with this press release (http://www.saskratereview.ca/images/docs/sgi-2012/sgi-autofind-media-release-may-posting.pdf], the details of which are found in the full report (http://www.saskratereview.ca/images/docs/sgi-2012/saf-panel-final-report-2012.pdf] The details for motorcycle rates are buried on page 25 of that document-

    Dislocation Capping
    Current Annual Rate Range Maximum Cap
    $1-50 $25
    $51-100 $50
    $101-250 $75
    $251-500 $100
    $501-750 $125
    $751-1,000 $150
    $1,000 or greater 15%*
    • Exception to above caps is the cap proposed for the sport motorcycle classification which is at
    30% versus the 15% maximum for other classifications

    So that meant that if you rode a MC with a policy > $1000 you saw a 15% increase, except if you rode a sport bike your increase was 30%. The SRRP reduced the rate increase for the car insurance, but put through the full increase asked for by SGI for MC insurance. Also on page 25 is this:

    The obvious exception to the uniform application of the proposed capping is for sport
    motorcycles, which continue to show a very large rate need. The Panel received several
    submissions from motorcycle industry associations and individual motorcyclists
    regarding the proposed cap of 30%, or $45 per month. Even with this proposed increase,
    the SAF indicates that the motorcycle class would still be paying less than the indicated
    rate. These items are addressed further in Section 3.2, Public Consultations. The Panel
    welcomes future discussions between SAF and representatives of motorcycle industry
    associations and individuals to investigate possible alternative solutions to this issue, and
    have included motorcycle safety and driver training as potential items for discussion in
    the SAF’s review of its insurance product offerings, in Recommendation #8. (SAF= SGI]

    So where does this leave us? On the SRRP page there is no application listed from SGI at this point. Until we see that and digest it, there is no concrete evidence as to the proposed increase. The SRRP panel members all show their terms ending Dec. 31, 2012 (http://www.saskratereview.ca/index.php?option=com_content&view=article&id=14&Itemid=13] Is that for their position on the panel or are they subject to reappointment or replacement? It is also clear that the existing panel is unlikely to support the interests of the MC community as their profiles seem to have little in common with ours. (But I would be pleasantly surprised if one does]. We have no allies on the SRRP panel. What we do have is an recommendation from the SRRP that SGI needs to consider motorcycle safety and driver training as "the submissions
    and comments made by the public during the review of this Application identified these as significant issues to be addressed." What has SGI done to address these "significant issues?"

    There needs to be dialogue, but with SGI already proposing increases that time may be past. It appears the only thing available now is to make your voices heard to the SRRP. I plan on drafting a letter to them with my concerns.
    #4
  5. 568V8

    568V8 Ontario Vstrommer

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    In Ontario I pay about $900 for my Vstrom DL 1000. I'm 61, been MC licensed since 1969, have a 5 star rating, have some rider training and ATGATT with high-viz. I consider myself to be a low risk for my insurance company Jevco.
    As I understand it there are only two insurers that actually do underwrite insurance of motorcycles in Canada so therefore there is no competition. It's called price fixing.
    #5
  6. squiffynimrod

    squiffynimrod maximum shrinkage

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    Page 11 of this (http://www.saskratereview.ca/images/docs/sgi-2012/saf-panel-final-report-2012.pdf} section 3.2 shows the level of public input- 76 submissions for the entire province. No wonder SGI got the full MC increase.
    #6
  7. Big Muddy

    Big Muddy n00b

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  8. OceanMtnSea

    OceanMtnSea Pretty Dogged

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  9. squiffynimrod

    squiffynimrod maximum shrinkage

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    So there it is. My bike is slated for a 73% increase. Pity the rider who has a nice pre-1982 1000cc sport bike- his increase is only 381%!

    So what becomes of vintage bikes? The proposed rate increase affects MC earlier than 1982, yet SGI states that antique in class LV must be at least 30 years old (http://www.sgi.sk.ca/individuals/registration/guidelines/antiquevehicles.html]. Even my limited math skills tell me that 1982 bikes can be registered as antique.
    #9
  10. squiffynimrod

    squiffynimrod maximum shrinkage

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  11. OceanMtnSea

    OceanMtnSea Pretty Dogged

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    I don't know about Manitoba, but I recently looked into insuring my vehicles including the bikes in BC and what I saw scared me :eek1.

    I think we have had it pretty good in Saskatchewan..................some of us stubble jumpers remember the days when the government (ndp at the time) was touting the "Saskatchewan Advantage" of the lowest rates in Canada due to the provincial crown corporations..........................now under the current government (cons) the new "Saskatchewan Advantage" looks, well down right anti-motorcycle.

    Two ways to look at this I think:
    1) Someone thinks fewer motorcycles on the road is a good thing; or
    2) Since most motorcycle owners only insure their bikes for the summer months, someone thinks the rate increases - while they look like lots of $ - most owners won't care - cause we are so rich now in Saskatchewan.

    I live in rural Sask and what I have noticed is that there is a distinct lack of speed enforcement on the roads in the past 5 years - I regularly get passed by people going 125+ on 2-lane highways (and get dirty looks for being a speed obstacle on the road).

    Perhaps in reducing speed enforcement to speed up the economy, the associated damage & injury costs are being picked up by SGI and now insured drivers.

    Motorcyclists are a minority and they have the associated clout, so I am not hoping for much, but I think the rate increases are correlated to the reduced enforcement on the roads which has trained drivers to take higher risks because they are unlikely to get caught - till they crash and burn.
    #11
  12. Steve G.

    Steve G. Long timer

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    OK, perhaps we need to clarify things. 381% increase from what level??
    Just for clarification, let me run by my current costs to insure my 2008 BMW R1200GS in south west British Columbia. I'm 53, no speeding tickets since 1988, no accidents since I started riding in 1976, allowing me full 43% maximum discount with our government public insurance company.
    As follows:
    Declared value, $13,000
    Basic coverage......................................$1646 less discount = $939
    Third party liability, $2 million limit..............$286 less discount = $132
    Comprehensive optional coverage
    [fire, theft, vandalism], $500 deductible.....$1264 less discount = $581
    Collision coverage declined.......................$0........................= $0
    Yearly cost..........................................$$3196 less discount= $1652

    Approximate collision coverage costs with $2500 deductible....$750

    So, as you can see things are not inexpensive, especially for mandatory coverage. Perhaps for clarification, we could all see what Saskatchewan riders are going to be faced with????
    #12
  13. BackRoader

    BackRoader ROK strapper

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    You will get over it... The sticker shock takes some time getting used to.

    We have become somewhat desensitized here in Manitoba... Though many have found " cheats" for the game.

    Registering your bike in Alberta through a relative seems to be the most common way.
    #13
  14. skrider

    skrider 2011 Strom

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    #14
  15. Rinty

    Rinty Been here awhile

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    Wow. And without collision coverage.
    #15
  16. Steve G.

    Steve G. Long timer

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    OK, here's the current and proposed rates:
    http://www.sgi.sk.ca/pdf/rateproposal/Aug31-2013/motorcycles_LV.pdf

    It does appear that big sport bikes will be pressed on hard. As well cruisers. IMO, these 2 catagory of bikes do seem to attract the greatest amount of incompetant riders,,,,namely squidly nutbar sportbike dudes, and wannabe, biker gang hopefull dudes returning to riding after raising their kids. I say bring it on if it will prevent losers from entering the serious motorcycle fraternity.
    BTW, the proposed rates do not appear to be any more expensive than BC.
    #16
  17. OceanMtnSea

    OceanMtnSea Pretty Dogged

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    Me .....with a SGI +18 safety rating and a 20% discount (which is the maximum).

    2009 Ducati Multistrada

    OLD= $50 registration fee + ($2,024 insurance premium (complete SGI no fault coverage) - 20% discount) = $1,669 for 12 months

    PROPOSED = $50 registration fee + ($4,298 insurance premium (complete SGI no fault coverage) - 20% discount) = $3,488.40 for 12 months

    INCREASE = ($3488.40-$1669)/$1669 = 109% increase



    2007 BMW F650 Dakar


    OLD= $50 registration fee + ($1,192 insurance premium (complete SGI no fault coverage) - 20% discount) = $1,003.00 for 12 months

    PROPOSED = $50 registration fee + ($1,666 insurance premium (complete SGI no fault coverage) - 20% discount) = $1382.80 for 12 months

    INCREASE = ($31382.80-$1003.00)/$1003.00 = 38% increase



    If register them for 4 months (the best months in Saskatchewan when snow is minimal) in 2014 it will cost me:

    BMW= ~$494.27
    Ducati= ~$1,196.13
    TOTAL = $1,690.40 for 4 months for 2 bikes of which I can only ride one at a time.

    This will hurt, but if you don't have the 20% discount..... it will hurt much much more.

    YUK YUK YUK!
    #17
  18. skrider

    skrider 2011 Strom

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    Looking at the rate sheet now... what you don't want to own is a newer CBR 250 type bike. Those rates are going up about 300%. Zing.
    #18
  19. Steve G.

    Steve G. Long timer

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    Forgot to add to that $1652 the license fee, and plate fee.........:cry
    #19
  20. DNF

    DNF Been here awhile

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    That is fucked, I thought BC was bad...
    #20