SGI Auto Fund

The Saskatchewan Auto Fund, administered by SGI, provides basic, universal insurance coverage to Saskatchewan residents. It operates on a self-sustaining basis with the goal of maintaining an adequate balance in the Rate Stabilization Reserve (RSR) to pay future claims and to protect customers against rate shock for years in which claim costs are higher than average. The Auto Fund neither receives money from, nor pays dividends to, the Government of Saskatchewan. The Auto Fund also provides services to ensure that drivers and vehicles are properly licensed. These services include licensing for around 800,000 drivers, registration services for more than one million vehicles, driver examinations, driver and vehicle safety fitness programs, and safety and audit programs for carriers who transport goods or passengers. These services are provided through about 350 independent motor licence issuer offices throughout Saskatchewan. The Auto Fund also invests in traffic safety initiatives to reduce the human, social and economic costs of vehicle collisions. 

The coverage provided by the Auto Fund is legislated in The Automobile Accident Insurance Act (AAIA), and can be divided into three components: 

• Personal injury coverage provides Saskatchewan residents with benefits if they are injured or killed in an automobile collision. All Saskatchewan residents have a choice between No Fault Coverage and Tort Coverage. Motorcycle owners also have a third option of Reduced No Fault Coverage. 
• Third-party liability coverage provides vehicle owners with up to $200,000 to pay the cost of damages their vehicle causes to others in a motor vehicle collision, including the damage to the other driver’s vehicle, damage to any property and costs resulting from injuries caused to others. 
• Physical damage coverage (collision and comprehensive) pays for damages to the insured’s vehicle due to a collision or other occurrence such as hail, fire or theft. Claims for damages to a vehicle are subject to a deductible (which is $700 for most vehicles). 

The major operating philosophies of the Auto Fund are to: 

• Provide basic automobile insurance coverage that is universal and fair. 
• Fairly rate insurance premiums for vehicle classes based on their claim loss experience and cost of repair. 
• Keep rates as low as possible. In determining premium rates for the Auto Fund there are three components to consider: 
  • Adequate premium rates to break even 
  • Fairness in rating 
  • Maintaining adequate capital