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Old 02-17-2013, 08:35 AM   #1
skrider OP
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Insurance spike in Saskatchewan

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.
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Old 02-17-2013, 08:38 AM   #2
Steve G.
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Quote:
Originally Posted by skrider View Post
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.

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?
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Old 02-17-2013, 09:10 AM   #3
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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.
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Old 02-17-2013, 11:25 AM   #4
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Quote:
Originally Posted by skrider View Post
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.
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/saskat...tes-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/...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/...y-posting.pdf], the details of which are found in the full report (http://www.saskratereview.ca/images/...port-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.p...=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.
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Old 02-17-2013, 11:31 AM   #5
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high rates - price fixing

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.
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Old 02-17-2013, 11:35 AM   #6
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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.
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Old 02-17-2013, 05:52 PM   #7
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Found this on SGI 's website.Disturbing indeed! http://www.sgi.sk.ca/pdf/rateproposa...rcycles_LV.pdf
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Old 02-18-2013, 04:52 AM   #8
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Originally Posted by Big Muddy View Post
Found this on SGI 's website.Disturbing indeed! http://www.sgi.sk.ca/pdf/rateproposa...rcycles_LV.pdf

Yup and YUK! .................that sure looks like one way to reduce the number of bikes on the road.........at least ones that are insured anyways?
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Old 02-18-2013, 06:52 AM   #9
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Quote:
Originally Posted by Big Muddy View Post
Found this on SGI 's website.Disturbing indeed! http://www.sgi.sk.ca/pdf/rateproposa...rcycles_LV.pdf
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/reg...vehicles.html]. Even my limited math skills tell me that 1982 bikes can be registered as antique.
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Old 02-18-2013, 07:28 AM   #10
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I'm asking our MB friends for info- they get hit pretty hard by their gov't insurance
http://advrider.com/forums/showpost....postcount=8063
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Old 02-18-2013, 09:49 AM   #11
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Originally Posted by squiffynimrod View Post
I'm asking our MB friends for info- they get hit pretty hard by their gov't insurance
http://advrider.com/forums/showpost....postcount=8063

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 .

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.
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OceanMtnSea screwed with this post 02-18-2013 at 09:54 AM
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Old 02-18-2013, 10:15 AM   #12
Steve G.
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Quote:
Originally Posted by squiffynimrod View Post
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/reg...vehicles.html]. Even my limited math skills tell me that 1982 bikes can be registered as antique.

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......................................$164 6 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..........................................$$31 96 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????
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Old 02-18-2013, 11:09 AM   #13
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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.
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Old 02-18-2013, 11:20 AM   #14
skrider OP
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SGI says riders in Sask have been subsidized by other drivers for years. I think I'll call around to other provinces and price shop my Vstrom tomorrow, just to see.

http://www.cbc.ca/news/canada/saskat...ates-1301.html
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Old 02-18-2013, 11:33 AM   #15
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Yearly cost...$1652....SteveG
Wow. And without collision coverage.
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