SGI Auto Fund

The Panel recommended that the rate SGI charges its customers for car insurance premiums be increased by an overall average of 2.27%, effective August 31, 2013. This includes an overall rate increase of 1.03%, and a 1.23% surcharge, to be shown as a separate item on customers’ renewal notices, to help replenish Auto Fund’s Rate Stabilization Reserve. The Panel recommended the surcharge be levied for one year, not three years as proposed by SGI. The Panel also recommended SGI limit rate changes to set dollar limits for customers with annual premiums below $1,000, and establish a 15% cap to premiums of more than $1,000. The Panel further recommended that the rebalancing affecting motorcycle rates be delayed until the results of the Motorcycle Review Committee are known.